MarketBeat: Week in Review 01/09-01/13

Key Points

• Markets are looking for direction heading into a holiday weekend.
• Earlier this week, the markets cheered a CPI report that provides further evidence that inflation may be peaking.
• Next week will close with earnings reports from some of the big names in tech.
• Here are some of the top stories our analysts were covering this week.

Markets are bouncing between a gain and a loss in early trading. The culprit appears to be bank earnings coming in lighter than expected. It’s also the Friday before a three-day weekend so that some investors may be taking some profits. This week saw a CPI reading that suggests inflation may be peaking.

That’s not the same as having it come down, but investors seem to believe that the status quo will be enough to keep interest rates from increasing. As always, we encourage you to take the long view.

Next week will be a short trading week that will end with earnings from some of the biggest names in the tech sectors. One way or the other that is likely to start moving markets. And you can count on the MarketBeat team to keep you on top of the moving markets' stories. Here are some of the most popular stories our analysts were covering this week.

Articles by Jea Yu

Jea Yu was focusing on the technology sector this week. In particular, he focused on two of the sector’s biggest losers from 2022 – Block Inc. NYSE: SQ and Snap Inc. NYSE: SNAP. As Yu writes, the case for Block is that investors appear to be moving past its exposure to cryptocurrency.

And that’s drawing attention to services such as its Afterpay BNPL (buy now pay later) program that was in high demand during the holiday season. With Snap, the case is less clear. But with TikTok under scrutiny by the U.S. government, Snap may be a winner. And as Yu points out, earnings expectations are extremely low. Yu was also explaining to investors how the settlement of a lawsuit was a primary catalyst in the recent spike in the stock price of Sotera Health Company NYSE: SHC.

Articles by Thomas Hughes

Penny stocks attract many investors because a little spike in price can mean big profits. That was the case with Sorrento Therapeutics Inc. NASDAQ: SRNE. The biopharma’s stock is up nearly 10% this week after its subsidiary Scilex Holding Company NASDAQ: SCLX announced better-than-expected net revenue in 2022 , creating a halo effect for Sorrento. Hughes was also looking at the recent surge in Camping World NYSE: CWH stock which gained over 9% early in 2023.

While the company has an attractive valuation, Hughes cautions that it may have a couple of rough quarters ahead as it digests some recent acquisitions. And while the retail sector won’t post earnings for a couple of weeks, Hughes wrote about Macy’s NYSE: M cutting its guidance. As Hughes points out, this may not impact the retail sector’s upcoming earnings season but could bring a negative surprise in the following quarters.

Articles by Sam Quirke

Alibaba NYSE: BABA referred to as the “Amazon of China,” was anything but a giant in 2022. But shares have been rallying in the last few months as the narrative in China appears to be turning more bullish. Quirke points out the remaining risks, but investors may find BABA stock attractive at its current level. One stock that had a good year in 2022 was The Wendy’s Company NASDAQ: WEN.

However, as Quirke notes, the new year is off to a rough start. Still, Quirke makes a case for why it may be okay to bite into WEN stock. For more risk-averse investors, defense stocks are a good choice, and that’s why Lockheed Martin Corporation NYSE: LMT is a solid choice. The stock recently hit an all-time high. But as Quirke notes, the stock will be impacted if the U.S. House of Representatives is successful in its goal of cutting $75 billion from defense spending.

Articles by Chris Markoch

Amazon.com Inc. NASDAQ: AMZN was one of the big losers in the tech sector in 2022. And some investors are suggesting that investors may be in for continued tough times in 2023. Chris Markoch feels differently and explains why Amazon may still deliver for shareholders in 2023. Clean energy remains one of the most closely watched sectors. This week, shares of Bloom Energy Corporation NYSE: BE rose sharply.

Markoch explains why an analyst upgrade highlighted the hydrogen fuel cell company’s international expansion. Markoch was also looking at Zim Integrated Shipping Services Ltd. NYSE: ZIM. ZIM stock has risen and fallen based on the global economy and shipping rates. And while the economy may get worse before it gets better, Markoch writes that the worst may already be priced into the stock.

Articles by Kate Stalter                                                          

Will it or won’t it? That’s the question investors have about whether the energy sector will continue to be one of the strongest in 2023. Early returns suggest there may be better buys, but Kate Stalter writes that moderating inflation is just one catalyst that could be bullish for oil stocks.

And if you’re looking for another sector poised to have a good year, Stalter writes that mining stocks benefit from the increased demand for minerals such as copper and lithium. Stalter was also writing about Salesforce Inc. NYSE: CRM. The stock is up about 6% in the last month mostly due to investors supporting the company’s move to cut staff. This is a case of what’s bad for Main Street being positive for shareholder value, many of whom are also on Main Street. While it looks too early to say a rally is certain, CRM stock may be one for your watchlist.    

Articles by Matthew North

Love it or hate it, investors can glean information from which stocks are bought and sold by members of Congress. Congresswoman Nancy Pelosi and her husband, Paul, have an impressive track record of stock picking. Fortunately, writes Matthew North, the couple’s transactions are a matter of public record, and North gives you a peek behind the curtain as to what the Pelosi’s are buying.

Not surprisingly, the power couple is not investing in Exxon Mobil NYSE: XOM. But maybe they should. The company issued a five-year plan that outlined a commitment to boosting earnings while pivoting to renewable energy sources like liquefied natural gas (LNG).

And it wouldn’t be a week if one MarketBeat contributor wasn’t writing about Elon Musk. This week, North understood the assignment and wrote about the bullish outlook for Tesla Inc. NASDAQ: TSLA after the company was named the top luxury auto brand in the United States, according to Electrek.

Articles by Keala Miles

The healthcare sector will continue to be one of the strongest performers in 2023; Keala Milles gave readers a list of four undervalued healthcare stocks that may be a good fit as investors look to get the year off to a good start. For a different way to play the healthcare market, Miles suggests investors may want to look at … Amazon.com, Inc. (NASDAQ; AMZN). The company recently announced its intent to acquire 1Life Healthcare Inc. NASDAQ: ONEM in a deal worth $3.9 billion.

This would give Amazon the growing area of tech-driven, membership-based health insurance. Biotech stocks carry more risk than healthcare stocks, but they remain in high demand by speculative investors. If you have a speculative itch to scratch, Miles offers up two biotech stocks that may be on the verge of breaking out.

Articles by MarketBeat Staff                                              

Despite the technical glitch that grounded all U.S. airlines this week, the news for airline stocks has been very bullish. In fact, the sector is only outperformed by copper in 2023. With that in mind, the MarketBeat staff gave their picks for three airline stocks that still offer investors the opportunity for growth and a cheap valuation. The staff also focused on the recent run-up in the price of Target Corporation NYSE: TGT. 

Read their article to see what catalysts are driving the stock and why they are likely to stay in place. And while NIKE Inc. NYSE: NKE continues to generate headlines in the sneaker market, our staff suggests you look closely at Skechers U.S.A., Inc. NYSE: SKX. The company’s shoe game is on point as it is becoming more than just a niche challenger brand