Ahead of shortened trading week with US markets closed on Monday for Independence Day/July 4 holiday, investors are likely to shift focus back to the pandemic after reports that the Delta variant is causing infections to rise again worldwide. The rapidly spreading COVID variant also threatens the economic recovery that is so important for cyclical stocks. said. Some 1,000 U.S. low-vaccination counties, particularly in the Southeast and Midwest, are particularly vulnerable.
So far, the cyclical countries have outperformed some of the better performers. Energy stocks are up 44.5% on the rebound in prices, and financials are up 25%. By contrast, growth stocks rose 14.3% and lagged slightly behind the broader index's 15.5% gain. Tech stocks are up 15% this year.
Amid these concerns about the future course of the pandemic, here are three stocks that will be on our radar next week:
1. Tesla
There could be some activity in Tesla (NASDAQ:) stocks in the coming week, after the electric carmaker reported Friday it has a record second-quarter 201,250 cars worldwide Delivered. Its quarterly sales data, released ahead of the company's second-quarter figures, scheduled for Monday, July 26, provide important insight into the EV manufacturer's financial position amid supply chain problems affecting the entire car. meet industry.
The majority of sales during the period, marred by a chip shortage, were of the company's popular Model 3 sedan and Model Y crossover. “Our teams have done a great job navigating the global supply chain and logistics challenges,” Tesla said in a statement. Shares of the Palo Alto, California-based company closed at $678.90 Friday, down about 4% for the year. After being under pressure until June, the stock started to show some strength in the past month, gaining more than 12%.
2. Broadcom
Late last week, the Federal Trade Commission accused computer chip supplier Broadcom (NASDAQ:) of illegally monopolizing the semiconductor component market.
The committee voted unanimously to press charges against the San Jose, California-based company, with newly appointed chairman Lina Khan not taking part in the vote. At the same time, the committee voted to accept a proposed consent order addressing the issues in the complaint, signed by Broadcom for public comment. Broadcom is one of the world's largest chip manufacturers; it also makes smartphone parts, key networking equipment components and semiconductors for Wi-Fi equipment, and home set-top boxes.
The proposed agreement prohibits Broadcom from entering into exclusivity or loyalty contracts with certain customers and requires that the company not make access to chips dependent on exclusivity or loyalty agreements. It would also prohibit Broadcom from retaliating against customers who do business with its competitors, according to CNBC.com.
"We are pleased to resolve this broadband issue with the FTC on terms that are essentially similar to our previous settlement with the EC regarding the same products," Broadcom said in a statement.
"We are equally pleased that the FTC investigation of our other companies has closed without action."
Broadcom shares, up about 7% this year, changed little on Friday, closing at $468.17.
3. American Airlines
Investors will keep a close eye on air travel trends over the July 4 holiday weekend, which could indicate pent-up demand for travel before the busy summer period after more than a year. year of restrictions on the spread of the deadly COVID-19 pandemic.
The sudden surge in demand, fueled by consumers tired of staying close to home, has fueled the ability of airlines to rebuild quickly after budget cuts, driven by the start of the pandemic last year , put under pressure. Pilots leaving and those transitioning to new aircraft types have had to be retrained as flight demand has recovered to near 2019 levels, Bloomberg reported last month.
American Airlines (NASDAQ:) has added flights faster than its main competitors. It now operates about 10% below its 2019 seat capacity, according to data from flight data company OAG. These capacity constraints and the threat of novel coronavirus variants are putting pressure on AAL stock. Shares have fallen about 16% in the past month.
Closing Friday at $21.48, the stock is still up 36% this year.
