3 stocks to watch over the next week: Tesla, Delta Air, JPMorgan Chase

US stock markets are likely to face another volatile week as rising bond yields come under pressure for high-growth stocks that have contributed massively to a relentless rally since the pandemic-induced crash in March 2020.

The first five sessions of 2022 inflicted huge losses to technology and growth-oriented stocks as bond yields rose, raising expectations that the Federal Reserve will quickly raise interest rates this year to counter the fastest inflation in four decades . uncertainty, they fell 4.5% for the week, while the home of megacap value stocks was barely negative over the same period, down just 0.3%, indicating investors are rotating their funds to value stocks. , which tend to be more cyclical and offer short-term cash flows.

Below we've shortlisted three stocks from different sectors that we'll be watching as the earnings season kicks off for the fourth quarter:

1. Tesla

Last week, Tesla (NASDAQ:) stocks lost all gains they had made in the first day of trading of the year, as investors shunned fast-growing names because of their extremely high valuations, including in the Austin, Texas-based electric car manufacturer – are hard to justify when interest rates are expected to rise this year.

Tesla got off to a strong start as it began trading in 2022 after the EV manufacturer reported breaking its record for fourth-quarter auto deliveries. Worldwide shipments were 308,600 vehicles in the fourth quarter, well above the average analyst estimate of approximately 263,000 vehicles, surpassing the company's previous record of 241,300 of the .

Annual transfers rose to more than 936,000 in 2021, an 87% increase from the previous year's level, Tesla said on Sunday. remain vulnerable as the macro environment becomes more hostile to growth stocks. Tesla shares closed at $1,026.96 Friday, down nearly 17% from their January 3 high of $1,201.07.

2. Delta Air

Delta Air Lines (NYSE:) will report its fourth quarter results on Thursday, January 13, before the market opens. On average, analysts expect earnings of $0.13 per share on revenue of $8.86 billion.

Before the wave of Omicron, investors hoped that the US airline industry would do just that, thanks to strong domestic demand for air travel. But the emergence of the fast-growing variant poses new challenges for airlines dealing with staff shortages and illness. They had to cancel hundreds of flights during the busy holiday season in December and beyond.

Several US airlines, including Delta, offer financial incentives to most employees to work overtime as the industry struggles with employees sick with COVID or under mandatory quarantines.

Delta stock closed Friday at $41.51, after a 5% decline in the past three months.

3. JPMorgan Chase

JPMorgan Chase (NYSE:), Wall Street's powerful commercial and investment bank, will release its fourth quarter results on Friday, January 14, before market opens. Analysts predict $3 equity gain on $29.85 billion in revenue.

In an environment where investors expect the Fed to raise rates more aggressively than previously expected, bank stocks are outperforming many stocks in other sectors. Shares of JPM rose more than 3% in the past week, as Wall Street mainly suffered losses. Shares of JPM closed Friday at $167.16.

During the third quarter, JPM benefited greatly from record-breaking M&A activity, which delivered one of the best-ever results for total investment banking costs. In the future, the lender must demonstrate its ability to expand its business as the economy recovers from the pandemic.

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