- Fed charge reduce, FOMC dot-plot, Powell information convention, and labor market information might be in focus this week.
- Broadcom is well-positioned to ship earnings outcomes that considerably exceed consensus estimates whereas offering optimistic steering.
- Lululemon is predicted to ship mixed-to-weak outcomes, reflecting slowing U.S. demand and macroeconomic pressures.
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Wall Road’s important indexes ended largely larger on Friday, with the S&P 500 securing its fourth straight successful day as merchants digested inflation information that would present additional incentive for the Federal Reserve to chop rates of interest subsequent week.
Supply: Investing.com
For the week, the S&P benchmark 500 gained 0.3%, the tech-heavy rose 0.9%, and the 30-stock added 0.5%. The small-cap climbed 0.8%.
The blockbuster week forward is predicted to be a busy one stuffed with a number of market-moving occasions, together with a key Fed coverage assembly. The U.S. central financial institution is extensively anticipated to decrease rates of interest by 25 foundation factors on Wednesday. Together with its coverage replace, the FOMC will launch new dot-plot projections for rates of interest, unemployment and inflation for 2026. Put up-meeting feedback by Fed Chair Jerome Powell, whose time period ends in Might, may additionally transfer markets.
Supply: Investing.com
There can even be some noteworthy labor information due within the week forward. The JOLTS Job Openings Survey drops on Tuesday, whereas the most recent weekly jobless claims numbers are set for Thursday.
And whereas the earnings season is all however over, just a few notable corporations will report within the coming week. These embody AI performs and Oracle, in addition to retailers Costco Wholesale, GameStop, and .
No matter which path the market goes, beneath I spotlight one inventory prone to be in demand and one other which may see recent draw back. Bear in mind although, my timeframe is simply for the week forward, Monday, December 8 – Friday, Dec. 12.
Inventory To Purchase: Broadcom
Broadcom, a key participant within the AI semiconductor area, emerges because the compelling purchase alternative, with a number of progress drivers converging to assist what is predicted to be a strong earnings report and robust steering.
The corporate’s fiscal This autumn replace is scheduled to come back out on Thursday at 4:15PM ET. Market individuals anticipate a large swing in AVGO shares following the print, with choices markets pricing in a possible $30 transfer, or roughly +/-8%, in both path post-earnings.
Analysts have proven optimism by way of a number of upward revisions to EPS estimates—27 upward changes versus simply three downward in latest months—setting the stage for what could possibly be one other document quarter. Current analyst upgrades, together with Jefferies’ new $480 value goal and Mizuho’s bullish AI income projections, add gas to the hearth.
Supply: InvestingPro
Broadcom is seen incomes $1.87 per share, representing a 31.7% enhance from the prior yr and marking one other quarter of accelerating profitability. In the meantime, income is forecast to leap 24.2% year-over-year to $17.45 billion, fueled by strong AI demand.
The corporate’s AI chip partnership with Google—highlighted by the latest Gemini 3 launch—has cemented Broadcom’s standing as a linchpin within the AI provide chain.
Analysts anticipate upbeat steering, reinforcing the inventory’s management in AI and enterprise software program. Broadcom’s application-specific built-in circuits and networking switches have turn into indispensable parts for AI coaching and inference workloads, creating buyer dependency that helps premium pricing and long-term contract visibility.
Supply: Investing.com
AVGO inventory ended Friday’s session at $390.24, just under its document excessive of $403. Broadcom’s technicals are as bullish as they arrive. Each main indicator—throughout all timeframes from minutes to weeks—alerts a “sturdy purchase.” The 1-hour chart is particularly strong: RSI at 60.2 (bullish however not overbought), MACD constructive, and all transferring averages (easy and exponential) in purchase territory.
InvestingPro’s AI-powered quantitative mannequin charges Broadcom with a ‘GREAT’ Monetary Well being Rating of three.13, reflecting sturdy revenue and gross sales progress, excessive gross margins, and a long-standing document of rising dividends (15 consecutive years).
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Inventory to Promote: Lululemon
Lululemon, as soon as a darling of the athleisure market, faces a difficult setup heading into its Q3 fiscal 2025 earnings, with expectations pointing towards a possible miss and subdued ahead steering amid rising competitors, tariff impacts, and softening client demand.
The yoga put on retailer—recognized for its $128 leggings and $68 exercise tanks—is slated to launch its newest monetary outcomes at 4:05PM ET on Thursday. With implied volatility pointing to an enormous +/-12% inventory transfer post-earnings, the danger of a miss looms giant.
Analyst sentiment is overwhelmingly bearish with 22 downward revisions and no upward changes within the weeks previous the report, amid a slowdown in U.S. client spending on discretionary objects like yoga gear and sportswear.
Supply: InvestingPro
Wall Road sees Lululemon reporting adjusted earnings of $2.21 per share, declining 23% from a yr earlier. Income progress is forecast at solely 3.3%, as intensified competitors from different activewear manufacturers, like , Adidas, and Alo Yoga, in addition to low-cost gamers, equivalent to Shein and Temu, erodes the corporate’s once-untouchable market place within the profitable athleisure section.
Lululemon’s latest efficiency metrics counsel basic demand weak spot somewhat than non permanent market disruption, with same-store gross sales progress decelerating and buyer visitors patterns indicating lowered engagement with the model.
Administration’s latest commentary about promotional exercise and stock clearance suggests margin strain that would persist into the important vacation quarter as the corporate makes an attempt to take care of market share in an more and more aggressive setting.
Supply: Investing.com
LULU inventory closed at $190.01 on Friday. Regardless of a latest 1-month rally of roughly 14%, technicals present a break up character: whereas the 1-hour chart leans bullish, longer-term and month-to-month alerts stay bearish or impartial, highlighting a fragile restoration.
As per InvestingPro analysis, latest analyst commentary paints an image of declining momentum: Jeffries reiterated its Underperform ranking and reduce its value goal to $120, warning of shrinking margins and pricing pressures.
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Disclosure: This isn’t monetary recommendation. At all times conduct your individual analysis.
On the time of writing, I’m lengthy on the S&P 500, and the Nasdaq 100 through the SPDR® S&P 500 ETF, and the ETF. I’m additionally lengthy on the Know-how Choose Sector SPDR ETF. I recurrently rebalance my portfolio of particular person shares and ETFs primarily based on ongoing threat evaluation of each the macroeconomic setting and corporations’ financials.
The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.
Observe Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
