Weekly market review from UTEX – 4!
Banks being stormy, government debt negotiations at a standstill, reporting season at the finish line – and, traditionally, some stocks to trade this week.
Throughout last week, we watched the roller coaster ride in regional banks: endless trading stoppages on declines were replaced by a Friday rally on expectations of a happy bailout. Other stocks, especially QQQ, the ETF for the high-tech NASDAQ-100, also supported the bank rally. GLD, mentioned before, suffered a slight pullback. But, globally, gold has steady growth potential.
For sure, all this and next week the market will be under the impression of the deadlock with the negotiations on the increase of the debt ceiling. However, the currency strategist from Bank of America expects the situation to be resolved by June 1, as well as increased volatility by that deadline.
Top stocks to trade this week
Airbnb (ABNB) – quarterly report today after market close. The stock traditionally reacts strongly to the numbers, but this time analysts' expectations are so divergent that we don't recommend opening positions before the news. All eyes are on the $125 level. Anything higher is a great buy zone.
Rivian (RIVN) – quarterly report today after market close. Tesla's competitor continues to “burn cash,” but is not giving up and is making plans for growth. Given the general interest in the electric car market and good prices, we should expect bounces.
Zscaler (ZS) – the cybersecurity company issued guidance on Monday before the market opened, according to which the company will show excellent returns on June 1. In general, the whole sector looks strongly oversold, especially against the background of the big techs' reports. We expect growth to continue up to $150. Let's not forget about the competitors – CRWD also looks promising.
JD.com (JD) – quarterly report on Thursday after the close. Despite a lot of debt, the Chinese online retailer has decent cash reserves. The company's report may be encouraging – wait for the news and look for entry points to buy intraday.
Even though this week is almost the end of the reporting season, after a significant revaluation of FAANG, the stocks will move, adding great opportunities for us. Don't relax after the holidays and welcome to trade!
