MarketBeat Week in Review – 1/8 - 1/12

Key Points

• Stocks drifted lower to end the week as investors digested the latest readings on inflation.  
• Investors are now rethinking expectations for a Fed rate cut in March; it could mean higher-for-longer rates are the new normal. 
• Markets will be closed on Monday; here are some of our most popular articles from this week.   

Stocks drifted lower to end the week, with investors cooling on equities after a mixed outlook on inflation. The December Consumer Price Index (CPI) reading showed the pace of inflation was rising. However, the Producer Price Index (PPI) continued to drift lower.  

The results seem to be dampening expectations for the Fed to lower interest rates as soon as March. But investors will have to wait until the end of the month to know for sure. In the meantime, earnings season kicked off with bank stocks drifting lower, but perhaps not reflecting how the banks really performed.  

It continues to be a confusing time for investors. But hey, you can now buy Bitcoin through one of many spot Bitcoin ETFs that began trading this week.  

Markets will be closed on Monday in observance of Martin Luther King Jr. Day. But the MarketBeat team will continue to watch the stocks and stories moving the market. Here are some of our most popular articles from this week.  

Articles by Jea Yu 

Many investors are turning to options trading to manage market volatility and uncertainty. This week, Jea Yu explained the mechanics of a straddle, which is a non-directional options trading strategy that investors can use when they expect a significant movement in a stock but are unsure of which direction.  

Yu also wrote about the recent merger of EchoStar Co. NASDAQ: SATS with DISH Network Co. NASDAQ: DISH and explained why both companies must hope that the fortunes of both will be better the second time around.  

The human genome continues to intrigue investors, and many investors are excited about gene editing stocks. However, while gene editing stocks may still be more than a year away from delivering on their potential, gene therapy looks like a good speculative investment in 2024. And this week, Yu analyzed two gene therapy stocks that may be appropriate for speculative investors.  

Articles by Thomas Hughes 

The semiconductor sector is in a super cycle. However, analysts are conflicted about how much growth investors can expect in chip stocks. Thomas Hughes writes about a recent report that predicts double-digit growth in the sector, which will continue to be fueled by artificial intelligence (AI). And this time, Nvidia Corporation NASDAQ: NVDA won't be the only beneficiary.  

Surprisingly, another sector that showed strength in 2023 was homebuilder stocks. One of the winners was KB Home NYSE: KBH. This week, Hughes gave investors four reasons why the recent sell-off in KBH stock could be a buy-the-dip opportunity.  

And as earnings season kicks off, a profitable strategy is to invest in the stocks that are receiving upgrades. Hughes has done your work for you and analyzed the four most upgraded stocks on MarketBeat in the first week of 2024.  

Articles by Sam Quirke 

Apple Inc. NASDAQ: AAPL is one of the most heavily owned stocks among retail and institutional investors. But, several downgrades have dragged down AAPL stock to start 2024. Nevertheless, Sam Quirke explains why technical analysis shows Apple flashing a buy signal that suggests an oversold condition. 

Speaking of oversold stocks, Quirke explains how investors can use the relative strength indicator (RSI) to target oversold stocks. He also analyzes three mid-cap stocks with RSIs that point to the stocks being oversold.  

Quirke also looked at the housing market. Investors should always be on the hunt for stocks to buy before a trend fully emerges. This week, Quirke analyzed three specific stocks that may benefit if, as expected, mortgage rates continue to move lower in 2024. 

Articles by Chris Markoch 

Aerospace stocks have been in the news as investors continue assessing the impact of the in-flight incident with an Alaska Air Group Inc. NYSE: ALK flight. Will the investigation move beyond The Boeing Company NYSE: BA to its suppliers? This week, Chris Markoch writes why analysts don't believe that to be the case, which could create a buying opportunity for Boeing and Airbus supplier Howmet Aerospace Inc. NYSE: HWM.  

Even with inflation starting to subside, consumers will likely see an increase in their insurance premiums in 2024. Markoch explains why that may be bullish for three insurance stocks for investors to consider to outperform the sector.  

Articles by Kate Stalter  

Trading the news can be a profitable trading strategy. Recent geopolitical events are causing shipping to be rerouted around the Suez Canal. As Kate Stalter explains, it could be time to hit the buy button on several shipping stocks that may not be on the radar of investors.  

Speculative investors may also wonder if now is the time to get exposure to Bitcoin stocks or cryptocurrency now that nearly one dozen spot Bitcoin ETFs launched this week. Stalter explains why crypto stocks still face some legal and regulatory hurdles that will continue to make them speculative investments. 

A less speculative choice for investors may be AstraZeneca PLC NASDAQ: AZN. Analysts are predicting double-digit growth for the pharmaceutical company due to optimism about growing sales for the company's cancer and diabetes drugs and a new acquisition that will position the company in the innovative cell therapy arena.  

Articles by Ryan Hasson 

Bitcoin is surging higher after the SEC approved several spot Bitcoin ETFs. This week, Ryan Hasson explained everything novice investors need to know about buying shares of one of the many Bitcoin ETFs launched this week. 

The Magnificent 7 stocks led the strong performance in stocks in 2023. Will 2024 be a repeat performance? This year, investors may need to be more selective, but Hasson explains why three of the Magnificent 7 stocks are approaching a buy zone.  

Cybersecurity stocks are also expected to lead the market in 2024. But Hasson explains that while analysts are still bullish on CrowdStrike Holdings Inc. NASDAQ: CRWD, a little caution may be in order if you don't have a position in the stock.  

Articles by Gabriel Osorio-Mazilli 

If you're not sold on Bitcoin but are looking to diversify by asset class, you may be considering getting exposure to gold via mining stocks. This week, Gabriel Osorio-Mazilli explains why one of the world's leading gold miners, Barrick Gold Corp. NYSE: GOLD, may be setting up for a strong rally as the price of gold rises.  

Chinese stocks were beaten down for much of 2023 as the economic recovery in China never materialized. However, Osorio-Mazilli explains why a prominent investor is starting to invest in several Chinese stocks, which could make this the right time to put these names on your watchlist.  

Agricultural stocks are also continuing to draw interest from investors. These stocks will benefit from a more accommodative monetary policy in 2024. And Osorio-Mazilli explains why The Scotts Miracle-Gro Company NYSE: SMG is well-positioned to be a standout performer if this sector takes off.  

Articles by MarketBeat Staff 

Many investors enjoy picking stocks using their own methodologies. However, sometimes it's good to get nudged in the right direction. This week, the MarketBeat staff wrote three articles that pointed investors toward three sectors. Investors can read why the industrial sector is expected to perform well and three industrial stocks that are getting upgraded before earnings. 

Healthcare will also remain one of the best sectors to invest in. The staff gives you the names of three healthcare stocks that are off to a strong start in 2024.  

And, if the market rally expands, mid-cap stocks will likely outperform. The staff gives you three mid-cap stocks that are expected to report strong earnings in the next few weeks.