1 Stock to Buy, 1 Stock to Sell This Week: Nvidia, Target

On By Littum

• Fed speakers and Nvidia earnings will be in focus this week.

• Nvidia is a buy with another huge beat-and-raise quarter on deck.

• The target is a sale in the midst of declining sales, lower prospects are expected.

• Looking for more actionable trading ideas? Subscribe here for up to 55% off as part of our Early Bird Black Friday Sale!

U.S. stocks ended lower on Friday, with the S&P 500 and Nasdaq notching their biggest one-day losses in two weeks as a post-election rally ran out of steam and investors worried about interest rates.

For the week, the S&P 500 fell 2.1%, while the tech-heavy Nasdaq Composite fell 3.1%. The blue-chip Dow Jones Industrial Average lost 1.2% in the period.

Source: Investing.com

The coming week is expected to be an eventful week as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings.

On the economic calendar, flash PMI readings on the manufacturing and services sectors will grab attention on Friday, along with updates on the housing market.

It will be accompanied by a large slate of Fed speakers, with the likes of District Governors Jeffrey Schmid, Lisa Cook, Michelle Bowman and Beth Hammack set to make public appearances.

Weekly economic events
Weekly economic events

Source: Investing.com

Expectations for a 25-basis-point rate cut at the Fed’s December meeting stood at 63% Sunday morning, according to the Investing.com Fed Monitor Tool.

Elsewhere, in corporate earnings, Nvidia’s ( NASDAQ:NVDA ) results will be the main update of the week as the third-quarter reporting season winds down. Other notable names lined up to report earnings include Walmart ( NYSE:WMT ) , Target ( NYSE:TGT ) , TJX Companies ( NYSE:TJX ) , Ross Stores ( NASDAQ:ROST ) , Lowe’s ( NYSE:LOW , Palo Alto Networks ( NASDAQ:PANW ) and Snowflake ( NYSE:SNOW ).

Regardless of which way the market goes, below I highlight one stock that is likely to be in demand and another that could see fresh downside. Remember though, my time frame is just in the coming week, Monday 18 November – Friday 22 November.

Nvidia is poised for significant gains this week as the tech giant prepares to deliver another beat-and-raise quarterly report amid rising demand for its AI chips.

The Santa Clara-based company is set to announce its Q3 earnings after the market closes on Wednesday at 4:20 PM ET, with expectations for another record-breaking performance. A call with CEO Jensen Huang is set for 5:00 PM ET.

Market participants expect a significant swing in NVDA shares after the print, according to the options market, with a possible implied move of 9.8% in either direction.