August 16, 2025
The market is back with a ban… or at least it looks like it. After a not great few weeks, the market has finally rebounded. Investors across the last week have grown in optimism that the fedxeral reserve is going to impose a rate cut. This is probably still because of the terrible July jobs report, as a rate cut could significantly improve the jobs market and boost spending overall. This expectation has propelled DOW and the S&P 500 to record highs. Earning reports also came in this week, which further drove the market up. AMAT, a key player in the semiconductor industry reported its earnings this week, which were strong and beat analyst expectations for revenue and earnings. Although its stock dropped off because of a not-great prediction for the next quarter, the report shows an overall positive theme occuring in the tech market. A broad term for the mood right now would be cautiously optimistic, especially with key earning reports coming in, specifically in the retail industry, over the next week. Now it is time for the new predictions part of my update(I will review my predictions for this week next week).
Predictions
This upcoming week, key retailers like Target, Walmart, and Home Depot are releasing earnings reports, and it is not looking good overall for the retail sector. I predict a decent week for the market, still growing but slowly growing. Now, lets get to the stocks.
Risers:
Home Depot: This is a major retailer releasing an earnings report the upcoming week. I think that the stock is going to rise, with predictions of revenue and EPS growth being reported all around. Although macros such as the slow housing market and high interest rates could have hurt revenues as less people are buying and renovating homes, I think that with upcoming rate cut, the outlook on Home Depot is going to be a lot more positive, and you should probably look out for a big jump next week.
Fallers:
Target: It does not look good for Target. An EPS fall of 20% YoY is expected, a significant margin below what can be deemed as decent. Revenue is expected to fall 2.2%, with beauty and household products falling by almost 60% in revenue. Online sales are down from 8.7% to 6.1% over the last year, further pushing the negative connotation surrounding Target. If Target meets estimates, the stock at best might stay flat, but it probably will still fall. Beating expectations will probably result in a short bounce, but if it falls below expectations, you could anticipate a steep drop.
Market Memo 