The shortened buying and selling week began as buyers cheered a cooler-than-expected producer worth index (PPI) for December. However that’s all come crashing down as recession fears stay high of thoughts for buyers. This week noticed earnings reviews from the large banks, and the message was clear. The period of low cost cash is over.
And with layoff bulletins each day, nearly all economists at the moment are conceding {that a} recession is inevitable. The one remaining questions are how lengthy and the way deep it will likely be. As earnings season kicks into excessive gear, the takeaway for buyers stays the identical. Take a look at corporations that may ship income and earnings throughout this time. And, as you’ll see from our MarketBeat contributors, you also needs to proceed to have a look at these dividend shares.
Articles by Jea Yu
As maybe a harbinger of what to anticipate because the retail sector reviews gross sales for this vacation season, Lululemon Athletica, Inc. (NASDAQ: LULU) is down after a disappointing earnings report. The corporate had been resilient in 2022. However as Jea Yu factors out, the corporate is seeing margin compression as inventory levels rise. Yoga anybody? If shoppers showcase their newest athleisure put on, they might do it on Pinterest Inc. (NASDAQ: PINS).
As Yu writes, the social commerce (to not be confused with social media) platform deserves a spot in your watchlist because it captures the attention of the coveted Gen-Z consumer. And the corporate’s current success is due, partially, to its short-form video content material. Yu was additionally writing about Walgreens Boots Alliance, Inc. (NASDAQ: WBA). The corporate posted a disappointing earnings quantity. However that was largely the results of the corporate settling its opioid litigation. That would imply buyers can lastly begin specializing in the corporate’s development plans.
Articles by Thomas Hughes
If buyers wanted affirmation of an economic system headed for recession, they received that from JPMorgan Chase & Co. (NYSE: JPM). As Thomas Hughes writes, the financial institution reported elevated credit score losses you’d anticipate from a softening economic system. To offset that, the financial institution confirmed a rise in its capital reserves.
That’s a fragile steadiness that highlights the sturdy fundamentals of the financial institution. However for buyers, that is when excellent news shouldn’t be good for the inventory. Hughes additionally suggested buyers to be cautious concerning the post-earnings bump in UnitedHealth Group Incorporated (NYSE: UNH) inventory.
Whereas the inventory is exhibiting indicators of bottoming out, Hughes notes there could also be some more downside risk. For buyers seeking to discover a place to cover out because the economic system falters, Hughes suggests these four dividend kings which additionally provide excessive yields for buyers.
Articles by Sam Quirke
In a risky market, buyers can discover protected havens in best-in-class shares. And as Sam Quirke highlights, that’s what you get with Visa Inc. (NYSE: V). The inventory is up 30% since October and has many analysts believing the stock has further to run. One other inventory that Quirke believes buyers ought to hold their eyes on is Intel Corporation (NASDAQ: INTC).
The chip sector has been crushed down. The sector should be in for a few tough quarters, however when it comes again, Intel is one to watch as its efforts to construct up manufacturing capabilities in the US align with the just lately handed Chips Act.
And at a time when airways are below scrutiny for lots of the unsuitable causes, Quirke was analyzing the scenario with Delta Air Lines, Inc, (NYSE: DAL). The corporate delivered sturdy earnings however weak steering. Nonetheless, Quirke factors out that solid fundamentals make DAL inventory one to look at for later this yr.
Articles by Kate Stalter
This week Kate Stalter had one thing for buyers of various stripes. Progress buyers are hungrily in search of locations to place their capital to work. Stalter suggests you take a look at Airbnb Inc. (NASDAQ: ABNB). The corporate beat its most up-to-date earnings report, is seeing margin development, and has been shopping for again its shares. Any development inventory carries outsized danger with the specter of a recession, however ABNB inventory could also be one to look at. Should you’re an earnings investor, Stalter factors out that you simply haven’t gotten a lot development from a dividend king like Johnson & Johnson (NYSE: JNJ). However Stalter factors out a chart sample that, if confirmed by next week’s earnings may change that story. And for tech buyers in search of diversification, mid-cap shares are all the time a stable selection. Stalter writes about two mid-cap tech stocks which can be prepared to interrupt out.
Articles by Matthew North
Whether or not you agree together with her or not, Woods has a persistently aggressive funding model targeted on disruptive expertise. So for those who’re bullish on the way forward for this market, you’ll take pleasure in what Matthew North writes about three stocks Cathie Wood is buying for her ARK Innovation ETF (NYSEARCA: ARKK).
However, for those who’re extra bearish in the marketplace, you’ll be blissful (is that doable?) to know that Michael Burry (yeah, THAT Michael Burry) continues to be bearish in the marketplace. North summarizes Burry’s bearish outlook which is a must-read for any investor. And if that makes you need to promote every little thing, I counsel you learn North’s article about three attractive defensive stocks. Not solely will you profit from being in a sector that tends to outperform in a bear market, however you’ll get a pleasant dividend in your bother.
Articles by Keala Miles
There are occasions when even the very best corporations swing and miss. That could be the case for Pepsico Inc. (NASDAQ: PEP). The corporate has launched a new lemon-lime soda, “Starry,” that isn’t tickling the style buds of shoppers…but. However as Miles writes, that doesn’t imply buyers needs to be involved about their funding in PEP inventory. However, some buyers could also be seeking to purchase shares of T-Mobile US Inc. (NASDAQ: TMUS) after it reported strong earnings.
However as Miles factors out, the inventory has a excessive P/E score that means it has lots of development already priced in. Lastly, it wouldn’t be every week with out one article about Elon Musk. On this case, Miles was writing about Tesla Inc. (NASDAQ: TSLA), which introduced a price cut on many of its popular models. The transfer may enable shoppers to reap the benefits of the tax credit from the Inflation Discount Act. Like many issues within the EV market proper now, there are not any ensures, however the worth cuts are having no impact on TSLA inventory both approach.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
