- Latest PCE inflation reading, Congressional testimony from Fed Chair Powell, and U.S.-Israel-Iran tensions will be in focus this week.
- Micron stands well-positioned to beat earnings expectations when it reports results this week, making it a stock to buy.
- Nike is a sell as it prepares to release earnings that are expected to disappoint along with weak guidance.
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U.S. stocks closed mostly lower on Friday, as investors monitored the latest developments out of the Middle East. Traders also contemplated the path of future interest rate cuts by the Federal Reserve.
Source: Investing.com
For the week, the was about 0.2% lower, the 30-stock was little changed, while the tech-heavy advanced 0.2%.
More volatility could be in store in the week ahead as investors assess the outlook for the economy, inflation, interest rates and corporate earnings amid escalating tensions between the U.S., Israel and Iran and President Donald Trump’s trade tariffs.
The U.S. bombed three Iranian nuclear sites Saturday evening, U.S. time, President Donald Trump announced. Trump called the strikes “very successful”, saying the mission “completely and totally obliterated” the nuclear capability of Iran.
Meanwhile, on the economic calendar, most important will be Friday’s core PCE price index, which is the U.S. central bank’s favorite inflation gauge.
Source: Investing.com
The Fed’s rate cut outlook could become clearer when Chair Jerome Powell delivers semiannual monetary policy testimony before the House Financial Services Committee on Tuesday and the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Wednesday.
And while the earnings season is all but over, a few notable companies will report in the coming week, including FedEx (NYSE:), Micron (NASDAQ:), Nike (NYSE:), Walgreens Boots Alliance (NASDAQ:), and KB Home (NYSE:).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, June 23 – Friday, June 27.
Stock to Buy: Micron
Micron heads into earnings week with high expectations, as analysts anticipate both a beat on quarterly results and an upbeat outlook driven by robust demand for its memory chips and DRAM pricing strength.
The semiconductor giant is scheduled to deliver fiscal third-quarter numbers on Wednesday at 4:00PM ET. A call with president and chief executive officer Sanjay Mehrotra is set for 5:00PM ET. The options market is pricing in a potential share price move of plus or minus 9.5% following the earnings announcement.
Industry checks suggest Micron’s bit shipments were bolstered by a pull-forward of PC and smartphone production, as manufacturers rushed to secure exemptions from impending higher reciprocal tariffs. Additionally, DRAM pricing is projected to rise through September, setting the stage for Micron’s fiscal Q4 guidance to exceed current analyst estimates.
Source: InvestingPro
Micron is seen earning $1.59 a share, more than doubling from a profit of $0.62 per share in the year-ago period. Revenue is forecast to jump 29.8% annually to $8.84 billion, benefiting from sales of high-capacity DRAM and next-generation LPDDR5X chip.
With pricing for these products anticipated to increase into September, Micron’s fiscal Q4 guidance could come in above expectations, further fueling investor optimism.
As technology advancements continue to drive demand for memory and storage solutions, Micron is strategically positioned to capitalize on these trends. The Boise, Idaho-based company plays a critical role in powering advancements in AI, cloud computing, and 5G connectivity with its innovative DRAM and NAND products.
Source: Investing.com
Shares have been on a tear heading into the print, hitting a series of fresh year-to-date highs in recent sessions. MU closed at $123.60 on Friday, well above its 50-day ($91.80) and 200-day ($95.63) moving averages, underscoring the strength of its rally. The stock is up 46.9% so far in 2025.
Additionally, Micron demonstrates solid financial health, boasting an InvestingPro Health Score of 2.8 out of 5.0 (“GOOD”), which reflects a strong balance sheet and improving cash flow.
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Stock to Sell: Nike
Nike, on the other hand, is a stock to consider selling this week as it faces headwinds heading into its latest earnings report. The sports apparel titan is slated to deliver fiscal fourth-quarter results on Thursday at 4:15PM ET and the outlook is bleak.
The company’s guidance is likely to disappoint, reflecting a prolonged turnaround timeline that has been further complicated by recent macroeconomic challenges and tariff developments.
As could be expected, an InvestingPro survey of analyst earnings revisions reveals growing pessimism ahead of the print, with 22 of the 23 analysts covering Nike revising their EPS estimates downward in the past 90 days. According to the options market, traders are pricing in a swing of +/-8.5% in either direction for NKE stock following the print.
Source: InvestingPro
Despite its strong brand recognition, the sneaker giant has faced mounting challenges in recent quarters, struggling with shifting consumer preferences, increased competition, and supply chain challenges.
Nike is expected to post a massive 88% year-over-year drop in adjusted earnings per share to $0.12. Revenue is projected to decline by 15% from the year-ago period to $10.7 billion, reflecting slowing growth in North America and China, two of Nike’s largest markets.
Recent tariff escalations and global economic uncertainty have complicated Nike’s already challenging recovery efforts, resulting in slower progress on key initiatives. Keeping that in mind, Nike CEO Elliott Hill is likely to strike a cautious tone regarding the full-year outlook and signal that the company’s turnaround will take longer than previously expected.
Source: Investing.com
NKE stock – which fell to a 2025 low of $52.28 on April 10 – ended Friday’s session at $59.79, barely above its 50-DMA ($59.35) and well below its 200-DMA ($71.35), illustrating a loss of momentum. Shares are down 21% in the year-to-date.
Furthermore, it should be noted that Nike has an InvestingPro Financial Health score of 1.9 out of 5.0, labeled as “FAIR”, due to lingering worries over weakening gross profit margins and spotty sales growth.
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Disclosure: At the time of writing, I am long on the S&P 500, and the via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.