Well, I was right now, wasn’t I. Target dipped by 3%, thanks to a terrible earnings report(which I predicted last week) and a CEO appointment of Michael Fiddelke, who evidently the market did not like. Home Depot, like I said last week, also went up thanks to a great earnings report. So far, I’m 2 out of 2, and hopefully I continue my 100% success rate in this weeks predictions (Scroll to the end to view them). Now, lets get to the week in the market. Inflation and the fed dominated headlines. The CPI held steady, which made investors happy, but the PPI(tracks wholesale prices) showed a three year high. Normally, this would not have meant a great week, but the indexes show a different story. That was because for the second week running, the market is optimistic of a rate cut. Powell said, albeit on Friday, that a rate cut is impending, boosting the market like crazy. Everybody has been anticipating a rate cut for a while now and these comments further improved sentiment, helping to close stocks on the week with a high. As for trade, the White House delayed tariffs by 90 days on China but it barely impacted markets. The thing is, the PPI already showed higher import costs linked to tariffs and this consequently boosted inflation, so the market did not really shift up as a result of this. Now, for the best part of the blog. The predictions section. Remember, both my predictions will be reviewed next week.
Predictions
Risers
NVIDIA– It is set to release its earnings report on Wednesday and it could be a tell tale sign of AI demand overall in the economy. Revenue is set to be 46 billion dollars and EPS is forecasted to be $1.01. Both of these are up 50% year over year, showing great confidence from investors in this stock, so I anticipate a rise. Considering AI’s overall growth over the last two years or so, meeting expectations should be no problem for NVIDIA, and it is bound to rise, so buy as soon as you can.
Fallers
Intel– This stock could dip for a multitude of reasons. There is increased government involvement in the company and the semiconductor market is heavily based on imports and trade, and relations with other nations, and tariffs are not helping these relations. Also, NVIDIA is projected to have a great earnings report, and considering that these two are huge rivals in the semiconductor market, Intel is bound to fall.
Market Memo 