We're downgrading this retail stock after a big comeback. Plus, AI names slide again
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- The market is selling off on Friday, concluding a volatile week for stocks, with the Nasdaq down 2.2% and the S&P 500 down 1.2%.
- AI-related technology and infrastructure stocks are facing pressure due to rising capital costs and slowing revenue growth.
- Semiconductor stocks, including Intel, Nvidia, Micron, and Broadcom, are down significantly, with the SOXX ETF pulling back about 15%.
- Cybersecurity stocks like CrowdStrike and Palo Alto Networks also experienced declines.
- The market rotated into defensive consumer staples (Kimberly-Clark) and healthcare (Eli Lilly, Cardinal Health).
- TJX Companies is downgraded to a hold-equivalent rating after a rally, with advice to take profits.
- Upcoming earnings reports include Capital One, Meta Platforms, 3M, GE Aerospace, RTX, Lockheed Martin, General Motors, Honeywell, Tesla, IBM, Lam Research, Western Digital, Texas Instruments, and various airlines, railroad operators, regional banks, American Express, Netflix, Procter & Gamble, SLB, and Halliburton.
- Economic data releases include housing starts, building permits, October S&P Global U.S. Manufacturing and Services PMI, and consumer sentiment/inflation expectations.