🚨7 Breakout Stocks to Watch BEFORE Friday

Summary

In this week's stock market update, Joseph Hog dives into the latest market-moving headlines, including earnings reports, inflation and jobs data, potential tariff changes, and the Federal Reserve's stance on interest rates. He highlights seven key stocks poised to benefit from the ongoing tariff situation, with special attention to companies like Eli Lilly, Freeport McMoRan, and Intel. With big earnings reports and potential volatility from tariff talks, Hog advises investors to stay alert and protect their portfolios. The week ahead promises to be crucial, making this a must-watch update for anyone in the market.

Takeaways

• 😀 The stock market faces a potentially turbulent week with a series of significant events, including earnings reports, inflation data, and tariff deadlines.
• 😀 Investors should be aware of earnings reports that could lead to big price swings in stocks, with some stocks surging or crashing by 10-20%.
• 😀 A critical event this week is the Federal Reserve meeting, where it's widely expected that rates will remain on hold, potentially spurring negative reactions from President Trump.
• 😀 The deadline for tariff negotiations on August 1st is a major concern, with the potential for tariffs on countries like China, Japan, and the EU, which could create volatility in global markets.
• 😀 Some stocks could benefit from tariffs, especially those that produce products in the US. Companies like Eli Lilly and Micron Technology could gain from tariff protection.
• 😀 Pharmaceutical stocks could be impacted by proposed tariffs, with Eli Lilly positioned to benefit due to its domestic manufacturing capabilities.
• 😀 Semiconductors, including Intel and Micron Technology, could be affected by a proposed 25% tariff on chips, though some companies with domestic production may benefit.
• 😀 The US trade deficit report, expected to show an increase, could fuel further tariff threats from President Trump, which would contribute to market volatility.
• 😀 The monthly jobs report is critical; a weak jobs report could signal an economic slowdown, possibly affecting stock prices and increasing the likelihood of a Fed rate cut in the future.
• 😀 Investors may want to hedge their positions using options like put options on the S&P 500 ETF (SPY) to protect against downside risk while still allowing for potential upside in stocks.
• 😀 The healthcare sector is showing strong performance, with 12.4% earnings growth expected, making it a sector to watch, especially with attractive valuations compared to other sectors.

Q & A

What are some of the major events happening this week that could impact the stock market?

This week, key events include earnings reports for several companies, inflation and jobs data, a Federal Reserve meeting, and a looming tariff deadline. These could lead to significant market volatility.

Why is August 1st significant for the stock market this week?

August 1st is crucial because it marks a deadline for tariff deals, with President Trump indicating no more extensions. This could result in higher tariffs, especially on Chinese and European goods, potentially shaking the market.

What is the significance of the Federal Reserve's meeting this week?

The Federal Reserve is expected to keep interest rates on hold, which could lead to tension with President Trump, who has been vocal about wanting a rate cut. The market is closely watching for any signals that may impact future policy.

Which sectors are expected to perform well, and why?

The healthcare sector is expected to perform well due to strong earnings growth projections and attractive valuations. It is anticipated to see the third-best earnings growth, after tech and communication services.

How are tariffs influencing the stock market, according to the script?

Tariffs are creating market volatility, with industries like pharmaceuticals, semiconductors, and steel being particularly affected. Companies with U.S. production or a strong domestic presence are expected to benefit from the tariffs.

Which companies could benefit from tariffs on pharmaceuticals?

Companies like Eli Lilly (LY) could benefit from tariffs on pharmaceuticals because they have significant U.S. manufacturing, and tariffs would protect them from overseas generics.

How might the semiconductor industry be impacted by new tariffs?

New tariffs on semiconductors could disrupt the global supply chain. However, domestic companies like Intel (INTC) and Micron Technology (MU) might benefit due to their U.S.-based manufacturing and strong federal support.

What is the outlook for SoFi Technologies, and what concerns does the analyst have?

SoFi Technologies (SOFI) has seen a significant run-up in stock price, but concerns about its valuation remain. The analyst is cautious about recommending more purchases until the stock price comes down.

What are the growth expectations for Meta Platforms and Microsoft in the coming weeks?

Both Meta Platforms (META) and Microsoft (MSFT) are expected to show 14% sales growth. However, Microsoft's valuation is high, and the analyst doesn't foresee major news. Meta's stock is cheaper and has room for growth, especially in advertising.

How has Robinhood Markets performed, and why is the analyst revising their opinion?

Robinhood Markets (HOOD) has experienced a significant stock run-up, and while the analyst initially doubted its valuation and business model, its recent shift into tokenized assets has impressed, leading to a more positive outlook.