Stocks on Wall Street surged Friday, closing new records after shockingly bad US concerns that the Federal Reserve would wind down its stimulus program soon.
However, the top averages ended mixed for the week, with the Dow and S&P 500 up 2.7% and 1.2% respectively, while the tech-heavy declined 1.5%.
DOW, S&P 500 and NASDAQ Daily Chart
This week we will see another series of high-profile earnings reports from companies like Walt Disney (NYSE :), Alibaba (NYSE :), Palantir Technologies (NYSE :), Coinbase Global (NASDAQ 🙂 and Airbnb (NASDAQ :), plus additional key economic data, including the latest US, making this week an eventful week.
Regardless of which direction the market is heading, below we highlight one stock that is likely to be in demand and the other that may see further downsides.
However, keep in mind that our timetable is for the next week only.
Stock To Buy: Deere
Deere & Company (NYSE :), one of the world's leading manufacturers of agricultural, mining and construction equipment, saw its stock increase last week to new peaks amid the sustained rise in commodity prices
DE shares – which are up 46.5% so far this year – closed at a new high of $ 394.22 Friday, earning the company a valuation of $ 122.2 billion.
We expect the advance of grain and metals futures to continue to lead to gains in shares of the Moline, Illinois-based company in the coming days.
In addition, charting techniques also look promising after DE stocks managed to bounce off its 50-day moving average (DMA) and clear the $ 392 level, which acted as a recent resistance.
Growing optimism about the global economy has led to a remarkable increase in a wide range of commodities this year, fueling sentiment among the agricultural and heavy machinery manufacturer.
Prices shot to record highs for the first time in more than a decade on Friday, while, and traded near their highest in nearly nine years.
Deere, which crushed expectations for the last quarter, then reports financial results ahead of the opening of the US market on Friday, May 21.
According to consensus expectations, the agricultural giant should post earnings per share of $ 4.47 for its second quarter, a whopping 111% improvement over earnings per share of $ 2.11 per share in the same period one year ago.
Revenues are expected to increase 28% year-on-year to $ 10.5 billion, driven by the ongoing recovery in the agricultural and mining sectors.
Top and bottom line figures aside, investors hope that Deere will update its full-year earnings and revenue forecast to reflect the positive impact of skyrocketing commodity prices on its business.
Stock To Dump: DoorDash
DoorDash (NYSE 🙂 stocks, which traded on the New York Stock Exchange last December, seem to remain under pressure for the next week now investors brace themselves for disappointing financial results.
DASH, which dropped to a record low of $ 120.23 by the end of last week, ended Friday's session at $ 124.89, falling more than 51% below its all-time high of $ 256. 09, on January 27.
At current levels, the Palo Alto, California-based company has a market capitalization of approximately $ 40 billion.
The food delivery company is scheduled to report revenues for the second time as a publicly traded company after the closing clock on Thursday, May 13. As such, it is not faced with year-over-year comparisons.
Consensus estimates call for a loss of $ 0.08 per share for the first quarter, while sales are expected to be $ 994.3 million.
The DASH stock plummeted after the — released in late February — after net losses more than doubled from the same period a year earlier. It also set a bleak outlook for the year, warning that some of the tailwind enjoyed by personal eating restrictions will fade and turn into headwinds as lockdowns recede across the country.
Investors will therefore keep an eye on DoorDash's consumer engagement and average order value, which rose sharply in the last quarter as a result of soaring demand during the COVID pandemic. We expect these statistics to slow significantly in the first quarter as the economic reopening accelerates and more people try to eat out amid the vaccine-led return to normalcy.
In addition, market players will focus on DoorDash & # 39; s outlook for the remainder of the year and beyond. The food delivery service previously predicted marketplace gross order value (GOV) growth – a key sales measure – at 27.7%. That represents a sharp slowdown in the 227% growth in GOV in the market in the fourth quarter.
