Stagflation fears, crude prices, and U.S.-Iran headlines continued to influence sentiment on Wall Street this week, leaving stocks scattered. Supply concerns and the Strait of Hormuz closure remained a hot topic, particularly after drones struck three ships off the coast of Iran earlier in the week. False claims and attempts to ease concerns at the White House were quickly pushed aside, with oil surging to $120 before pulling back.
A handful of economic indicators also surfaced, including an annual consumer price index (CPI) reading of 2.4% and weekly jobs data that was slightly below estimates at 213,000. Despite flirting with positive territory in the first half of Friday, the Dow Jones Industrial Average (DJI), Nasdaq Composite (IXIC), and S&P 500 Index (SPX) are each headed for a weekly loss.
Historic Signals, Partnerships Surface
Even amid market volatility, it's nice to have some historic guidance. This week, Howmet Aerospace (HMW), Mosaic (MOS), and rare earths stock MP Materials (MP) all flashed historic "buy" signals.
Plus, iShares Russell 2000 ETF (IWM) looks to be gripping to the top-end of the losing team of small caps. Several names managed to tick off important business deals as well, including drone maker Ondas (ONDS) and AI giant Nebius (NBIS).
Final Earnings Reports Trickle In
Though earnings season is fizzling out, a few notable names trickled in. Casey's General Store (CASY) enjoyed a same-store sales lift, while retail giant Kohl's (KSS) brushed aside a lackluster outlook. EV name Nio (NIO) popped on the back of its first quarterly profit and strong Q4 deliveries, just as tech behemoth Oracle (ORCL) ushered in an impressive post-earnings bull gap.
Some pre-earnings action surrounded Dollar Tree (DLTR) and Dollar General (DG), in addition to retailer Dick's Sporting Goods (DKS) and construction giant Lennar (LEN). Cosmetics retailer Ulta Beauty (ULTA) didn't fare well after earnings, sliding after a profit miss and weak forecast. Adobe (ADBE) stock not only added to its long-term deficit, but did so with a C-suite shakeup in tow.
More Inflation Data Ahead
Next week brings the Federal Open Market Committee's (FOMC) interest rate decision, which will be closely watched as inflation concerns swirl in response to the the U.S.-Iran war. Another key economic reading investors will be eyeing is the producer price index (PPI) for February. A handful of companies are still slated to report earnings, including Alibaba (BABA), FedEx (FDX), lululemon athletica (LULU), and tech giant Micron Technology (MU).
Don't forget to take a closer look at Schaeffer's Senior V.P. of Research Todd Salamone's take on when bulls should start to panic, as well as Senior Quantitative Analyst Rocky White's data on how stocks tend to perform after large spikes in oil prices.
