Investors saw a mixed bag on Wall Street, capping a week of gains buoyed by a strong U.S. jobs report. Major indices showed modest increases, setting the stage for a week to watch.
Throughout the week, the S&P 500 rose by 1.3%, the tech-heavy Nasdaq surged by 2.4%, while the blue-chip Dow climbed by 0.3%.
The upcoming week promises to be action-packed, with pivotal events on the horizon, including the Federal Reserve’s monetary policy meeting and Wednesday’s eagerly awaited release of the U.S. consumer price inflation report for May.
Investors have shifted their expectations for the Fed’s first interest rate cut to September, setting the stage for potentially decisive developments in the stock market.
Stock Opportunity: Oracle on the Rise
Oracle emerges as the star of the show this week, poised for a potential breakout to a new record high. This cloud and software giant is expected to reveal robust growth figures and a positive outlook for its cloud services division.
With Oracle’s fiscal Q4 earnings report scheduled for Tuesday after market close, investors are eyeing a possible 7.6% move in either direction based on options market expectations.
Analysts are optimistic, with a sizeable portion raising their profit and sales estimates for Oracle ahead of the report.
Despite an anticipated 1% earnings dip year-over-year, Oracle is projected to report a 5.6% revenue increase to $14.57 billion, predominantly driven by solid performance in cloud services and license support.
With strong growth forecasted and a promising outlook, Oracle stands to benefit from the burgeoning AI trend and its close ties to Nvidia.
Stock Warning: Apple’s WWDC Woes
On the flip side, Apple faces a challenging week with its Worldwide Developers Conference (WWDC) on the horizon. As the tech giant prepares to unveil its AI strategy, investors brace for potential market turbulence.
Since the event often influences AAPL stock trading patterns, caution is advised as volatile movements are expected in the days surrounding WWDC.
Trading near its record high, Apple’s stock is deemed overvalued by AI-driven quantitative models, signaling a potential 15% downside from current levels.
With a market cap exceeding $3 trillion, Apple remains a heavyweight in the tech sector. However, tepid performance in 2024 suggests that investor sentiment may be shifting.
As the company navigates through the challenges of an evolving market landscape, caution should be exercised by investors considering the current valuation of Apple stock.
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