On a recent Friday, concerns about rekindling inflation and a possible Iran attack on Israel were affecting the stock market. The Dow, S&P 500, and Nasdaq were all losing more than 1% each on the session and were headed for weekly losses. Flight-to-safety trades, such as bond buying, were driving yields lower, while a rise in oil prices due to Mideast worries added to the negative sentiment. Market weakness on Friday could potentially push the overall stock market into oversold territory.
Mideast concerns were also impacting the market, with West Texas Intermediate crude oil jumping above $87 per barrel due to supply concerns in the region. Overt Iran aggression risk has been ongoing, and the conflict between Israel and Iran’s proxies has been escalating. Despite some stocks being in the green for the week, such as Palo Alto Networks and Alphabet, most portfolio stocks were in the red. Apple had a gain of almost 3.5% for the week, while Foot Locker, Ford, and Morgan Stanley were among the losers.
Looking ahead to the next week, Morgan Stanley is set to report earnings before the opening bell on Tuesday, following Wells Fargo’s better-than-expected quarterly numbers. Club holdings Abbott Laboratories and Procter & Gamble will also deliver their latest quarters. Economic data for the week includes retail sales, housing starts, and jobless claims. As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade, with specific rules and guidelines outlined to ensure transparency and compliance.
The Club’s director of portfolio analysis, Jeff Marks, mentioned during a Morning Meeting that the market weakness on Friday could potentially push it into oversold territory, prompting the Club to look for stocks to buy. Marks suggested considering adding Best Buy and Constellation Brands on further weakness. Constellation Brands reported a solid quarter, and with oil prices rising due to Mideast concerns, investors were on edge after a recent intensification of price pressures.
Despite the market volatility and concerns about inflation and geopolitical tensions, the Club continues to monitor the market closely for potential opportunities. Members are provided with actionable updates in the Homestretch, which is released every weekday just in time for the last hour of trading on Wall Street. The week ahead will see earnings reports from key financial holdings, along with economic data releases. The Club’s disciplined approach and focus on identifying potential buying opportunities in oversold markets aim to maximize returns for its members while managing risks effectively.
