Market review from UTEX – week 34

Last week was the best week for the market in many months – we haven't seen a rally like this since November 2023. SPY: +4%, Nasdaq: +5.5%. NVIDIA (+19%), Broadcom (+11%) and Advanced Micro Devices (+10%) also did well.

Bitcoin, on the other hand, was flat all week, consolidating between $58,000 and $60,000.

On Friday, August 23rd, Jerome Powell will speak at an economic symposium in Jackson Hole, where he is expected to signal an interest rate cut. This will be supported by an inflation rate targeting 2% and a positive labor market.

Traditionally, the second half of August and early September is a time of calm in the markets. The panic is gone, most of the downside is closed, and volatility can drop dramatically.

So far 95% of the S&P 500 has reported.

Top 5 ideas for the coming days 

Palo Alto Networks (PANW). A cybersecurity company. Will publish results on August 19 after the close. At the report before last, unpleasantly surprised with a 25% sag. Not without adventure, but it has been gradually bought back and it's not that far from all-time highs.

Estee Lauder (EL). August 19 pre-opening report. Today, the cosmetics maker reported slightly better-than-expected results, but lowered its sales and earnings guidance for next year. CEO Fabrizio Freda, who has led the company for many years, is stepping down. The stock was initially down 10% in the pre-market, but has since halted the decline, which could be a buy signal. EL stock tends to have high volatility after the report, which is good for intraday trading.

Analog Devices (ADI). Maker of integrated circuits for signal conversion. Reported before the open on August 21. Unlike other companies in the semiconductor sector, it didn't fall too much in July and early August. One good report and it could break new ground.

Snowflake (SNOW). Cloud-based data storage and processing platform. Report Aug. 21 after the close. Last week, news broke that Warren Buffett's Berkshire Hathaway had sold its stake in SNOW. Shares are down 45% in six months. However, there is support at $110 from 2022 to bounce back from. If it goes lower, it's more likely to be a short.

Baidu (BIDU). China's leading search engine. Report Aug 22 before the close. Would be suitable for a medium-term investment with support around $75–$80.