Stocks in the week ahead will focus on the severity of the spread of COVID-19, during what should be a lull between Thursday’s strong jobs report and the upcoming earnings season. Stocks had a bang-up week, in the four days ahead of the long July 4 weekend, with all indexes making sharp gains. A surprise record gain of 4.8 million jobs in June lifted stocks on Thursday, boosting sentiment into the weekend. The S&P 500 was up 4%% at 3,130, and the Dow was up 3.2% at 25,827%, in their best week since June 5. The Nasdaq,up 4.6% posted its best week since May 7 and closed at a record 10,207. Further more this is the best quarter since 1998 and the best second quarter since 1938. Of course, stocks fell 20% in the first quarter, so what we really have is a bad case of whiplash in 2020 thus far.
“A 20% quarterly gain is quite rare, but the catch is previous large quarterly gains have actually led to continued strength,” according to LPL Financial Senior Market Strategist Ryan Detrick. “In fact, a quarter later stocks have been higher the past 8 times after gaining at least 15% during the previous quarter.”
With all that said here is what to watch this week, as earnings season creeps around the corner !
Boeing (BA) – Boeing looking to extend gains in what has seemingly become a strong bull market again.. somehow. All the news will be centered on their 737 Max results.
Tesla Motors (TSLA) – Looking for continued strength and incredible volatility. Love all the opportunities this stock gives! Again BEAT car delivery numbers DURING COVID-19. If they report break even or profit this baby is going to sky even higher.
United States Oil Fund (USO) – Commodities gains were lead by oil last week. Looking for continued strength as people shrug off the virus and head back to their “normal” way off consumerism.
US Global JETS ETF (JETS) – This industry was hit hard and has yet to recover. With a slight pull back last week this is a great opportunity to load up here!
Restaurant Brands International (QSR) – This has recovered well and looks to test all time highs this week. Demands to go back to eating out are clearly there. Let’s see how things work out. Personally I don’t see much value going forward but hey it’s a buy if the market keeps rising.
Paychex (PAYX) – Earning on Tuesday. Should deliver a beat. Volatility and buyers coming in are ahead.
