After the stock sell-off last week, it is difficult to predict whether the move was a small blip within a sustained strong rally, or a significant break in the trend. With that uncertainty, a consensus is forming that the coming weeks will not yield a straight-line rally like we've seen since June.
JPMorgan strategists have said they expect the market to gradually recover, but uncertainties are still lurking around the upcoming Nov. 3 presidential election that will affect fundamentals in the coming months.
"The significant reduction in previously extremely long positions by momentum traders should allow the stock market to recover in the coming weeks, as happened after the June 11 correction," said JPMorgan's note, carried by Reuters.
"But a repeat of the strong gains in July and August is less likely in the next two months."
With that in the background, here are three tech stocks that will appear on our radar during the upcoming holiday-shortened trading week:
1. Tesla
Tesla (NASDAQ 🙂 stocks were under pressure during out-of-hours trading on Friday, hurt by news released after the close that they had decided to become the electric carmaker in the index – expected move that played a part in the 400% rally in the stock this year.
Founder and CEO Elon Musk & # 39; s electric vehicle manufacturer was widely expected to be added to the prestigious benchmark after posting it a fourth consecutive time in July, one of the key performance criteria being considered by S&P Jones Indices, which monitors the meter.
In its place, online retailer Etsy (NASDAQ :), semiconductor equipment manufacturer Teradyne (NASDAQ :), and medical technology company Catalent (NYSE 🙂 were added.
Tesla & # 39; s share plummeted a whopping 8% in post-market trade Friday night, indicating that the automaker will have another turbulent week ahead of it after taking losses in the previous one. Shares closed at $ 418.32 on Friday.
2. Etsy
While Tesla stock is likely to topple even after the Labor Day holiday, Etsy (NASDAQ :), the online marketplace for handmade and vintage goods, may be in demand now that it is included in the S&P 500.
Etsy's sales reached $ 5 billion last year, from just $ 1 million when the platform launched in 2005. RBC Capital Markets says the company's “sustainably healthy growth and profitability” makes its stock worthwhile.
The company went through a tremendous evolution when it transitioned from a private company to a publicly traded colossus with a market capitalization of nearly $ 15 billion. There are approximately 65 million items for sale on Etsy at any given time. Shares of the Brooklyn, New York-based company are up 153% this year. They closed at $ 112.04 on Friday after a decline of more than 3%.
3. Peloton
Peloton Interactive (NASDAQ 🙂 plans to introduce a cheaper treadmill and a new high-end stationary bike, while lowering the price of its existing bike to stimulate demand. Bloomberg reported that the new treadmill, called Tread, will cost less than $ 3,000, compared to $ 4,295 for the current model.
The tread will also be smaller and have a cheaper belt design, similar to most other treadmills on the market compared to the current model's slat design, according to the report that mentions people familiar with the issue.
Peloton's inventory more than tripled this year as the company's fitness equipment benefited from the home environment and the closure of gyms as a result of the COVID-19 pandemic.
The stock closed at $ 80.63 on Friday after falling more than 2%. According to JPMorgan analyst Doug Anmuth, who raised his sales and earnings expectations last week, the stock could reach $ 105 by December 2021.
