Market review from UTEX – week 36

After strong turbulence, the S&P 500 still closed the fourth month in a row in the positive, adding 2.3%. The indices ended the week mixed – S&P 500 in a symbolic plus, Nasdaq lost 0.78%, Dow Jones at an all-time high. 

Warren Buffett's Berkshire Hathaway grew by 5% and reached a capitalization of $1 trillion. Strong reports from Affirm Holdings (+40%!) and Nutanix (+18%). Down leaders on the reports are NVIDIA (-7%), Dollar General (-32%), PDD Holdings (-31%) and Super Micro Computer (-28%). 

Bitcoin has been in the $57,000-$61,000 range for the past 5 days. Pavel Durov was released on bail and banned from leaving France. TON is down 4.5% for the week on the back of Durov's arrest in Paris.

Friday's key labor market statistic, the August employment report, will be released before the open. Investors will be watching for signs of a slowdown. 

Late August and early September is usually a weak time in the markets. On September 18, the Fed will start to cut rates, and the main question is by how much? We are unlikely to see increased volatility in the market before the Meeting, unless there are surprises.

Top 5 stocks to trade this week.

Broadcom (AVGO). Report on Sept. 5 after the close. Major chip designer and manufacturer. The stock is up 500% since 2020 and 82% over the past year. Not much left to the top 10 companies by capitalization.

Dollar Tree (DLTR). Report on Sept. 4 before the open. Its main competitor Dollar General (DG) reported weakly last week, with DLTR down 13% on that backdrop. These two could turn up the heat this week as well - they're doing well with post-report volatility.

C3.ai (AI). Report on Sept. 4 after the close. Enterprise AI platform developer. With revenue up 16% in FY 2024, C3.ai gave strong outlook for next year. Strong support at $20, could be considered for the midterm if the report doesn't disappoint. 

Gitlab (GTLB). Report on Sept. 3 after the close. A service for code storage, version control, and collaborative software development. The stock has sagged 35% over the past six months. Support at $40 was formed in June 2023, during which time the price has never dipped below. From this level, it is reasonable to take a mid-term view. The average annual target for GTLB is $62.62, +32% from the current price of $47.40.

RH (RH). Report on Sept. 5. Furniture retailer. Not a cheap stock, but moving great for a few days after the report.

Good trading!