Stock Market Analysis for November 14, 2024

As we approach the opening of the markets, here’s a comprehensive analysis of last week’s performance and the key factors shaping our outlook for the week ahead.

Market Recap

Last week, the S&P 500 closed 1.8% lower amid concerns over rising inflation and mixed earnings reports from major companies. The tech sector bore the brunt of the losses, with the NASDAQ composite falling 2.3% as higher interest rates rattled investor confidence in growth stocks.

Key Events Impacting the Market

1. Inflation Data: The Consumer Price Index (CPI) data released last week indicated that inflation remains stubborn, with year-over-year growth at 4.2%, prompting fears that the Federal Reserve might raise interest rates further.
2. Earnings Reports: Some notable misses included big names like Netflix and Tesla, which reported lower-than-expected profits, intensifying concerns about economic growth.
3. Geopolitical Tensions: Ongoing geopolitical tensions in Eastern Europe have kept energy prices volatile, further contributing to inflationary pressures and uncertainty in the markets.

Events to Watch

• Federal Reserve Meeting: One of the most critical events will be the upcoming Federal Reserve meeting next week, where the central bank is expected to review monetary policy in light of the latest economic data.
• Retail Sales Data: Scheduled to be released on November 16, this will serve as an indicator of consumer spending trends going into the holiday season.
• Earnings Reports: Look out for major retailers such as Walmart and Target, which could provide insight into consumer confidence and spending habits.

Investment Recommendations

Buy:

• SPDR S&P 500 ETF Trust (SPY): Good time for long-term investors to accumulate shares given the current dip. A solid hedge against inflation with exposure to a wide range of sectors.
• ProShares S&P 500 Dividend Aristocrats ETF (NOBL): As the market faces volatility, dividend-paying stocks offer stability and income.

Sell:

• Growth Tech Stocks: Consider booking profits or trimming exposure on high-growth tech stocks like NVIDIA (NVDA) and Zoom (ZM) until the market stabilizes or rates begin to drop.

As we enter this trading week, keeping an eye on inflation, interest rates, and consumer health will be key in navigating potential market fluctuations. Make your moves accordingly and ensure to conduct your due diligence.