Stocks fell on Friday, but the main Wall Street averages still managed to make weekly gains amid renewed hopes for another fiscal stimulus package and optimism about the advancement of the COVID-19 vaccine.
For the week, the increase was 0.4%, while the tack was 1.3%. The and the performed better, with both gaining 3.1% in that time frame.
Dow, S&P 500, NASDAQ Daily Chart
Investors should expect more in the coming Christmas week with holiday shortening, as they follow new developments in incentives and vaccines.
Regardless of which direction the market is heading, below we highlight one stock that is likely to be in demand in the coming days and another stock that could suffer additional losses.
Stock to Buy: JPMorgan Chase ]
JPMorgan Chase & Co (NYSE 🙂 stock is likely to see increased buying activity in the next week after the largest US bank to assets said it approved a $ 30 billion share buyback program starting in 2021.
In the same announcement, made shortly after the Federal Reserve released the results of its second 2020 bank stress test on Friday afternoon, JPMorgan also stated that it would maintain its regular quarterly dividend of $ 0.90 per common share.
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"We will continue to maintain a strong balance sheet that allows us to deploy safe capital by investing in and growing our businesses, paying out a sustainable dividend and returning any remaining capital to shareholders," said CEO Jamie Dimon in Friday's statement. , which came after the market closed.
The Fed had previously banned banks from buying back shares and restricting dividend payments following the first round of stress tests for banks in June, to help them build capital reserves due to the negative impact of COVID-19's ongoing health crisis. .
JPMorgan Chase Daily Chart
Shares of the Dow giant, which fell by as much as 45% at one point earlier this year, have returned in recent weeks, cutting their losses to 14.6% since the start of the year.
Outperforming industry peers such as Bank of America (NYSE :), Citigroup (NYSE 🙂 and Wells Fargo (NYSE :), JPM stock closed at $ 119.08 on Friday, not far from the best level in almost nine months. the New York City-based lender for approximately $ 363 billion.
We expect news of the $ 30 billion share buyback plan to likely push JPM shares higher in the coming week, as the plan is more important to the banking sector than almost any other sector.
Stock Dump: Intel
Investors may want to stay away from stock of chipmaker Intel (NASDAQ 🙂 this week pending further developments following a report Microsoft (NASDAQ: ) plans to share its own house processors for its servers and Surface PCs.
That doesn't bode well for Intel, which has seen more and more rival Big Tech companies, such as Apple (NASDAQ 🙂 and Amazon (NASDAQ :), choose to develop their own chips and microprocessors recently.
Intel stock has cratered nearly 21% since the start of the year, compared to the NASDAQ Composite's gains of about 42% over the same period, with investors worried about the struggling chipmaker's future prospects.
Once widely regarded as the undisputed leader in the computer processor industry, Intel has been steadily losing market share in recent years to smaller rivals such as Advanced Micro Devices (NASDAQ 🙂 and NVIDIA (NASDAQ :).
INTC shares, now only 8% away from hitting a new 52-week low, closed the week at $ 47.46, bringing the Santa Clara, California-based semiconductor company to a market capitalization of about $ 194.5 billion.
From a technical standpoint, Intel's stock has fallen below the 50-day, 100-day, and 200-day moving average, usually indicating more sales pressure.
INTC 50, 100, 200 DMA CARD
Considering this, it appears that INTC stock will remain in the background for the next few days due to the growing threat to its all-important chip business – the company's most profitable source of income.
