Stock Market Analysis for November 13, 2024

As we head into the new trading week, it’s essential to recap the events that shaped the markets last week (November 6-10, 2024) and assess the impact of upcoming events on stock performance.

Recap of Last Week

The previous week was marked by significant volatility in the stock market primarily driven by:

• U.S. Inflation Data: On Wednesday, the CPI report showed inflation at 3.0%, which reassured investors that the Federal Reserve’s tightening policy might be nearing its endpoint.
• Earnings Reports: Major tech companies reported earnings, with mixed results. While Apple (AAPL) beat expectations, Meta Platforms (META) fell short, leading to sell-offs in the sector.
• Geopolitical Tensions: Renewed tensions in the Middle East continued to create uncertainty, impacting energy prices and contributing to market unease.

Key Events to Watch Next Week

Looking ahead, the following events could impact the stock market:

• Federal Reserve Meeting (Nov 14): The market is watching closely after recent interest rate entries; any comments from the Fed regarding future hikes or policy directions could sway market sentiment.
• Retail Sales Report (Nov 15): As we approach the holiday season, this data will be crucial for gauging consumer strength and spending habits.
• Corporate Earnings: Companies such as Walmart (WMT) and Alibaba (BABA) will report earnings next week, which could further influence retail stocks and consumer sentiment.

Recommendations for Investors

Buy:

• SPDR S&P 500 ETF Trust (SPY): Given the stability in inflation, this ETF remains a solid long-term hold as the market adjusts to a new interest rate environment.
• NVIDIA Corporation (NVDA): Strong expectations for AI and gaming sectors, addressing both current demand and future growth.

Sell:

• Meta Platforms (META): Given its recent earnings miss and weaker forward guidance, short-term pullbacks may be ahead.
• Energy ETFs (XLE): As geopolitical tensions ease, and with oil prices stabilizing, these ETFs may underperform in the short term.

Conclusion

The upcoming week promises to be pivotal for market movements as investors digest Fed communications and retail data. It will be crucial to stay updated and adjust positions based on evolving economic indicators.