Market review from UTEX — week 34

The major US indices closed the week in positive territory. This time, SPY outperformed Nasdaq: +1% and +0.5%, respectively. The markets held steady despite the producer price index coming in higher than expected on Thursday. 

Investors have slightly lowered their expectations for an interest rate cut in September. Currently, 84.6% of market participants expect a 0.25 basis point cut at the September 17 meeting. 51% believe that at the October 29 meeting, the rate will be reduced by 0.5 points from current values.

Warren Buffett's Berkshire Hathaway disclosed its stake in UnitedHealth Group, after which the stock jumped 21%. Intel rose 23% on news that the US government may buy a stake in the chipmaker. On the negative side, CoreWeave fell 22% after an ambiguous report.

Bitcoin reached $124,500 on Thursday but has since corrected. BTC is currently trading at $115,200.

On Friday, Fed Chairman Jerome Powell will speak at the annual economic policy symposium in Jackson Hole.

The most intriguing reports this week are from Palo Alto Networks, Home Depot, Walmart, Intuit, Workday, Analog Devices, Baidu, and Target.

Top 5 ideas for trading this week

🟡 Estee Lauder (EL). Report on August 20 before opening. The stock has been very volatile, falling from $375 to $50 since January 2022. After the last report, there was a reversal, and EL managed to grow to $90 from its minimum values. There is usually movement intraday as well. Since our recommendation in April, it has grown by 50%.

🟡 Target (TGT). Report on August 20 before opening. Since April, the stock has been in the $88–$108 range. Another company whose valuation has fallen sharply since 2022. Prices are quite acceptable for the mid-term.

🟡 Baidu (BIDU). Report on August 20 before opening. Unlike many Chinese stocks, there is still no hint of a long here, but the prices are good. If the report and forecast are positive, the potential is high.

🔴 Intuit (INTU). Report on August 21 after closing. Developer of financial accounting software for individuals and small businesses. For those who like hot and expensive stocks. Often a strong gap after the report.

🟡 Zoom Communications (ZM). Report on August 21 after closing. At the peak of the pandemic, the price reached $585, now it is trading around $70. The latest reports exceeded expectations, and the forecast for the whole year was optimistic. But analysts expect revenue growth of only 2.5% over the next 12 months. One bad report could trigger a sharp sell-off. Since September 2022, the stock has hardly moved. Three-year range: $60–$90.

Choose what suits you best:

🔴 high risk, for the pros;

🟡 medium risk, for traders with little experience.

Profitable deals!

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