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MarketBeat Week in Review – 1/30 - 2/3

The markets are trending lower in late-day trading. But stock prices are nowhere close to the lows that some investors expected after a one-two punch that would normally sink stocks. First, Apple posted its first earnings miss since 2016. Then investors had to digest a scorching hot January jobs report.

At a time when markets are prisoners of the moment, it’s hard to know what to make of markets that are shrugging off news that seems to ensure the Federal Reserve will not change course anytime soon. Perhaps investors are latching onto wage growth that is slowing which could allow the Fed another avenue to reach the “soft landing” they want. Next week will bring another round of earnings reports. Here are some of the most popular articles from this week. 

Articles by Jea Yu 

While ChatGPT continues to get the headlines, Jea Yu suggests investors may want to look at Yext Inc. (NASDAQ: YEXT), an Enterprise artificial intelligence (A.I.) powered search platform provider. In its quarterly earnings report, Yext just posted an EPS profit which may be evidence that its restructuring plan is working.

Yu was also looking at Extreme Networks Inc. (NASDAQ: EXTR). The networking solutions provider continues to show strong growth largely due to its customer base which is mostly in recession-proof sectors like healthcare. And speaking of recession-proof industries, recessions usually are a boon for “sin stocks.”

But as Yu points out Constellation Brands Inc. (NYSE:STZ) is finding that consumers may be drinking more, but they also may be choosing lower cost alternatives that are battering the company’s top and bottom lines.  

Articles by Thomas Hughes 

Mullen Automotive, Inc. (NASDAQ: MULN) continues to be one of the most sought-after penny stocks. And Thomas Hughes continues to follow the news and the price action. This week saw both as Mullen announced a wave of new hires and, as the week ends, Hughes explains why MULN may be primed for a short squeeze.

Hughes had a much more dire note for any investors thinking about taking a long position in Bed Bath & Beyond, Inc. (NASDAQ: BBBY). The company appears to be ready to file for bankruptcy and Hughes gives investors ideas for which retailers may benefit if that happens.

And Hughes was also focused on the earnings report delivered by Meta Platforms, Inc. (NASDAQ: META). While there are reasons to be encouraged, Hughes explains why this may not be the time to buy into the rally.  

Articles by Sam Quirke 

The electric vehicle market will continue to be a big story in 2023. And this week Sam Quirke was writing about two stocks that will play a key role. Tesla Inc. (NASDAQ: TSLA) is off to a strong start this year as investors like the company’s improving margins. As the market share leader in a growing space, Tesla remains one to watch.

Ford Motor Company (NYSE: F) has also been rallying since the beginning of the year, but Quirke points out that investors are having a much different reaction to the company’s earnings. And Quirke was also teeing up Apple Inc. (NASDAQ: AAPL) before the company released earnings this week. Quirke noted that the stock still had bullish sentiment and that looks to be the case. 

Articles by Chris Markoch 

A busy week of earnings is coming to an end, and Chris Markoch wrote about three bellwether companies that may be giving investors reason for optimism. McDonald’s Corporation (NYSE: MCD) scored a double beat but its stock is under pressure as investors are concerned about the effect of inflation on the company’s margins.

In the case of Exxon Mobil Corporation (NYSE: XOM), the stock dipped initially after investors expressed disappointment that the company didn’t issue a share buyback like Chevron Corporation (NYSE: CVX). But the stock quickly rebounded as investors bought into the current catalysts for oil stocks.

And although Costco Wholesale Corporation (NASDAQ: COST) doesn’t report earnings for another month, the company released its January sales report which suggests that Costco will continue to be the right stock for the right time.  

Articles by Kate Stalter 

Artificial intelligence is one of the most appealing sectors for investors in 2023 and Kate Stalter gave investors two names they may not be considering when thinking about getting exposure in this space. EPAM Systems Inc. (NYSE: EPAM) is on the forefront of developing AI applications such as drones and robots and the company’s stock gapped up this week on enthusiasm for the entire sector is rising.

Another name to consider is NVIDIA Corporation (NASDAQ: NVDA) which makes the AI chips that will be used in many applications. Yet another way to invest in AI is through a fund. And Stalter points out that it may be time for investors to reconsider Cathie Woods’ Ark Innovation ETF (NYSEARCA: ARKK). The fund had a rough year in 2022, but it posted better-than-ever monthly gains in January.  

Articles by Matthew North 

If you still haven’t bought into this market rally, blue-chip stocks may be a good option. And Matthew North was writing about three blue chips that were making news for different reasons. The Boeing Company (NYSE: BA) announced that it was manufacturing the last 747 aircraft, what that means and what comes next.

North also wrote about The Procter & Gamble Co (NYSE: PG) which isn’t getting much support from retail investors but remains popular with the institutions. The question for Johnson & Johnson (NYSE: JNJ) is how a possible $10 billion judgement would affect the stock.

But as North points out, the company’s solid financials should allow the company to absorb that. It remains to be seen if that will be enough to bring investors back to the stock.  

Articles by Keala Miles 

If you're looking to move some speculative cash into the market, one strategy is to look for stocks that are trading at a discount to the market. Keala Miles gives investors three AI and cloud computing stocks that are trading near historic lows and explains why each one may offer investors a glimmer of hope.

Miles was also looking at Novavax, Inc. (NASDAQ: NVAX). The company’s stock has rallied recently perhaps in response to the company’s announcement that it planned to update its Covied-19 shot to address the new variants.  

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