MarketBeat Week in Review – 9/23 - 9/27

Investors got good news when the Federal Reserve’s preferred measure of inflation came in slightly cooler than expected. While there is concern that lower interest rates may reignite inflation and recession concerns. But for now, investors believe the stimulus efforts in the U.S. and China are a bullish sign. 

Investors will now focus on the September jobs report. If job growth slows, it will strengthen the case for more aggressive rate cuts when the Federal Reserve meets in November. 

But the larger story as it relates to the big picture for stocks is corporate earnings. It’s still two weeks until the third quarter earnings season kicks off, and expectations are for many companies to beat estimates. The MarketBeat team will keep you in touch with the stocks and stories that are moving the market. Here are some of our most popular articles from this week.  

 Articles by Jea Yu 

The MarketBeat team had the Microsoft Corp. MSFT nuclear power deal covered from all angles. Jea Yu looked at three uranium stocks that are already moving higher and will likely have a tailwind from the increased demand for uranium. 

After last week’s interest rate cut by the Federal Reserve, investors are speculating on which stocks and sectors are likely to benefit. Yu points them to Caterpillar Inc. CAT and gives investors four reasons why CAT stock has a path to record highs. 

Yu was also reminding investors, especially buy-and-hold investors, why they may want to take a closer look at eBay Inc. EBAY. The dot-com darling is still one of the e-commerce leaders, but the company is all grown up and is delivering the stable and steady performance investors expect from blue-chip stocks.  

Articles by Sam Quirke 

FedEx Corp. FDX stock dropped sharply after a disappointing earnings report that was accompanied by even more disappointing earnings. However, as Sam Quirke noted this week, sentiment from buyers this week suggests the sell-off could be overdone and analysts still forecast solid upside for the stock. 

Quirke was also looking at the recent performance of Rivian Automotive Inc. RIVN which is down nearly 20% after a mixed earnings report in August. The company is still navigating the headwinds that all EV companies are facing, but Quirke reminds investors that analysts are far more bullish on RIVN stock.  

Articles by Chris Markoch 

On September 23, Palantir Technologies Inc. PLTR officially began trading as part of the S&P 500 index. Chris Markoch explains what that means for the stock and whether now is a good time for investors who have been on the sideline to get involved. 

Markoch was also writing about the recent surge in Rocket Lab USA Inc. RKLB after the launch of its latest Electron rocket. Many investors expect RKLB stock to go “to the moon” and wonder if hitting a new 52-week high is the beginning of that move. Markoch explains why the stock makes a good long-term investment but may disappoint traders in the short term. 

Inflation is cooling but is still higher than the Federal Reserve’s 2% target. While lower interest rates may not be good for fixed income investments, Markoch explains why it’s a good time for investors to consider pivoting to dividend stocks that are increasing their payout at four times the rate of inflation.   

Articles by Ryan Hasson 

Biotech stocks have been on many investors’ watchlists in 2024 and as Ryan Hasson writes this week, lower bargaining costs due to lower interest rates may fuel a biotech boom for several sector stocks and ETFs.  

Gold is up nearly 40% in 2024, which has some investors believing a pullback is overdue. But lower interest rates and a weaker dollar may inspire some investors to buy the dip in gold. Hasson writes about a sector ETF as well as two mining stocks to watch closely. 

Small-cap stocks are also likely to get a boost from lower interest rates. Many of these stocks lagged the market because they rely on debt to fuel their growth. With the cost of borrowing decreasing, Hasson explains why small-cap stocks may be ready to outperform the market.  

Articles by Gabriel Osorio-Mazilli 

A major story driving the market higher this week was the aggressive stimulus measures being taken by the Chinese government. One of these measures included a rate cut that matched that of the Federal Reserve and makes some China stocks look like a bargain. If you’re considering getting involved in the sector, read what Gabriel Osorio-Mazilli wrote about two Chinese stocks that major investors can’t get enough of.  

If you want to keep your investments in the United States, Osorio-Mazilli explains why this rate cut is similar, yet different from past cuts. With that in mind, he offers up two sectors that are likely to be among the biggest winners from the recent interest rate cuts.  

Osorio-Mazilli also analyzed why the post-earnings dip in AutoZone Inc. AZO may present a buying opportunity. Auto loan delinquencies show a consumer under pressure. That will keep demand for used cars, and the parts needed to service them in high demand. That’s one reason that analysts are raising their price targets for AZO stock and one of its major. competitors.  

Articles by Leo Miller 

Microsoft’s deal with Constellation Energy Corp. CEG is likely to have a ripple effect across the entire clean energy sector. However, this week Leo Miller wrote specifically about what the Microsoft deal means for Constellation which is benefiting from analyst upgrades.  

NVIDIA Corp. NVDA continues to command a significant market share in the graphic processing unit (GPU) market. But Advanced Micro Devices Inc. AMD is its nearest (albeit distant) competitor. This week, Miller explains why AMD has a place in this sector, but investors may want to hold off on considering it a “threat” to NVIDIA’s dominance. 

Traders are always looking to ride the hot hand and few stocks have been hotter than Edgewise Therapeutics Inc. EWTX. This is a small-cap biopharmaceutical stock that is up over 330% in the past 52 weeks. Miller explains what’s behind the price movement and if there’s still an opportunity for traders to get involved.  

Articles by Nathan Reiff 

This week, Nathan Reiff looked at what interest rate cuts mean for retail stocks. Specifically, lower interest rates and continued cooling in the rate of inflation may spark consumer demand. One option is to look at the retailers who have been outperforming in a tough market. And Reiff gave investors three retailers whose stocks have climbed in the last quarter with more growth expected. 

Reiff also analyzed what interest rate cuts could mean for dollar store stocks. This sector was supposed to do well as consumers looked to make their dollars stretch. That hasn’t been the case, and Reiff breaks down what analysts feel about dollar store stocks heading into the last quarter of the year.  

Real estate stocks are expected to benefit from rate cuts. If that’s true, it could be time to look at homebuilder stocks. This week, Reiff looked at three homebuilder stocks that stand out in a sector that still appears to offer investors a mixed picture.  

The article "MarketBeat Week in Review – 9/23 - 9/27" first appeared on MarketBeat.