Market review from UTEX — week 14

Major U.S. indices are back in the red. SPY (–2.23%) has declined for the fifth week in a row. The Nasdaq dropped 3.35%.

Among mega caps, the biggest drawdowns came from Micron Technology (–15%), Meta (–11%), Alphabet (–8%), Oracle and Microsoft (both –6%). USDC issuer Circle Internet Group lost 25% amid rumors of a potential ban on offering yield for holding stablecoins. Bitcoin fell 3% over the week, Ethereum — 4%.

Meanwhile, oil companies keep rallying: Exxon Mobil +7% and already +43% for the quarter, Chevron +4% (+40% for the quarter). The conflict in the Middle East continues to weigh heavily on markets. Rumors of a ground operation and mixed statements from Donald Trump are adding to the uncertainty. On Wall Street, recession risks in the U.S. and cracks in the economy are being mentioned more frequently.

On Monday, Jerome Powell will speak at Harvard University. On Wednesday, the February Retail Sales report will be released. Consumer spending accounts for about two-thirds of the U.S. economy. At the start of the year, spending slowed in part due to bad weather. The data will show whether that trend has persisted.

On Friday, the March unemployment report will be published. February data came as a bad surprise: unemployment rose to 4.4%, and employers cut 92,000 jobs.

Lately, even strong earnings reports haven’t been enough to push stocks higher — investors are taking profits and focusing on negatives. This week, we’re expecting results from Nike, Conagra Brands, McCormick & Co., Lamb Weston, Cal-Maine, MSC Industrial, and TD SYNNEX.

Top ideas for trading this week

🔴 Nike (NKE). Earnings on March 31 after the close. Despite attempts to turn the business around, the stock is falling — about -20% over the past month. On February 27, management approved a cost reallocation plan. On March 11, Barclays upgraded the stock to Overweight, noting that financials may have hit a “fundamental bottom.” Analysts see potential upside of 30%+. Decent mid-term entry levels, but better to wait for earnings and guidance.

🔴 Micron Technology (MU), SanDisk (SNDK), Western Digital (WDC), Seagate Technology (STX). On March 25, researchers at Google announced TurboQuant — a compression method that reduces memory requirements for large language models and vector search systems by 6x. Demand for memory in AI infrastructure could decline, even as data volumes keep growing. Memory chip stocks fell 6–15% last week. Volatility here is likely to stay elevated for a long time.

🔴 Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP). Stocks of major U.S. oil companies continue to rise at an accelerated pace. If confirmed reports emerge about negotiations between the U.S. and Iran, a sharp correction is possible. A new phase of escalation (ground operation) would likely keep pushing prices higher.

🔴 PVH (PVH). Earnings on March 31 after the close. Owner of brands like Tommy Hilfiger and Calvin Klein. The stock often makes strong intraday moves after earnings, with potential for large gaps. Worth adding to your watchlist about four times a year — otherwise, better to stay away.

🔴 “What if the market reverses?”. Some of the worst-performing stocks this quarter with rebound potential:

• Reddit (RDDT) -46%
• Robinhood (HOOD) -45%
• Roblox (RBLX) -36%
• Adobe (ADBE) -33%
• Oracle (ORCL) -29%
• Microsoft (MSFT) -26%
• Palantir (PLTR) -26%
• Tesla (TSLA) -25%

🔴 High risk — for pros.

Profitable deals!

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