• Fed FOMC assembly, Powell information convention, and commerce battle developments will probably be in focus this week.
• Palantir is predicted to report robust earnings and steering, making it an interesting inventory to purchase.
• Ford faces a difficult panorama amid geopolitical and macro headwinds, suggesting a extra cautious strategy.
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The inventory market ended sharply greater on Friday, with the main averages notching their second straight week of good points amid a powerful jobs report and potential easing of commerce tensions between the U.S. and China.
The jumped 3% for the week, the rose 2.9%, whereas the tech-heavy rallied 3.4%.
Supply: Investing.com
With Friday’s surge, the S&P 500 has now recovered its losses since April 2, when President Donald Trump introduced his ‘Liberation Day’ tariffs.
Extra volatility could possibly be in retailer this week as the most recent assembly of the Federal Open Market Committee is about for Tuesday-Wednesday. The U.S. central financial institution is extensively anticipated to depart rates of interest unchanged, however Fed Chair Jerome Powell may supply hints about when price cuts would possibly begin when he speaks within the post-meeting press convention.
Supply: Investing.com
Elsewhere, the busy earnings season continues with reviews due from notable firms equivalent to, Superior Micro Gadgets (NASDAQ:), Tremendous Micro Laptop (NASDAQ:), ARM Holdings (LON:), Palantir (NASDAQ:), Coinbase (NASDAQ:), Shopify (NASDAQ:), Walt Disney (NYSE:), Novo Nordisk (NYSE:), Uber (NYSE:), Ford Motor (NYSE:), DoorDash (NASDAQ:), AppLovin (NASDAQ:), and DraftKings (NASDAQ:).
No matter which path the market goes, under I spotlight one inventory more likely 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, Might 5 – Friday, Might 9.
Inventory To Purchase: Palantir
Palantir is scheduled to report its Q1 2025 earnings after the market closes on Monday at 4:05PM ET, with expectations set for doubtlessly strong outcomes and robust forward-looking steering. A name with CEO Alex Karp is deliberate for five:00PM ET.
The information analytics and AI software program firm is capitalizing on a good shift in U.S. authorities and navy spending, prioritizing software program and AI options over conventional {hardware} and tools. Moreover, Palantir is well-positioned to safe profitable contracts from European protection companies ramping up their budgets.
Supply: InvestingPro
Wall Avenue expects Palantir to earn $0.13 per share, representing a 62% year-over-year improve. Income is projected to rise 36% to $862.2 million, amid booming demand for its AI-powered software program options, notably inside U.S. authorities companies and the protection sector.
This may mark Palantir’s seventh consecutive quarter of accelerating income development, constructing on the momentum that drove a 24% inventory gap-up following its February earnings report.
Wanting forward, Palantir seems strategically positioned on the intersection of two highly effective developments: elevated authorities expertise spending and the AI revolution. With federal spending on AI surging throughout North America and Europe, the corporate stays within the candy spot to journey this wave. 
Supply: Investing.com
Market individuals predict a large post-earnings swing in PLTR inventory, with a attainable implied transfer of 16% in both path based on the choices market. Shares – which have staged an astonishing rally off the April 7 low of $66.12 – closed at $124.28 on Friday (slightly below the mid-February all-time excessive of $125.41).
Regardless of considerations about its valuation, the technical image for Palantir is exceptionally robust, with “robust purchase” alerts throughout all timeframes from 5-minute charts to month-to-month analyses.
With an RSI of 72.38, the inventory is in overbought territory—sometimes a cautionary signal, however within the context of pre-earnings momentum and robust fundamentals, this means highly effective shopping for strain.
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Inventory to Promote: Ford
In distinction, Ford faces a turbulent highway forward because it prepares to launch its Q1 earnings report on Monday night at 4:05PM ET. Analysts anticipate lackluster outcomes, however the greater concern lies within the broader outlook.
As could possibly be anticipated, an InvestingPro survey of analyst earnings revisions factors to mounting pessimism forward of the print, with all 5 of the analysts masking Ford revising their EPS estimates downward previously 90 days.
With President Donald Trump’s proposed tariffs on car and auto elements imports looming, Ford is more likely to slash its full-year revenue and gross sales steering. The corporate’s beneficiant dividend, at the moment yielding round 7.3%, may additionally be in danger if monetary pressures persist.
Supply: InvestingPro
Wall Avenue tasks earnings per share of $0.02, a big decline from a revenue of $0.49 per share in the identical quarter final 12 months. Income is forecast to fall by 16.3% year-over-year to $35.79 billion.
The first concern looming over Ford is the potential impression of impending tariffs on automobiles and auto elements imports. These tariffs may improve manufacturing prices in addition to automobile costs, doubtlessly eroding Ford’s revenue margins and affecting demand.
Ford’s challenges lengthen past simply coverage uncertainties. The corporate continues to navigate the complicated transition towards electrical automobiles whereas managing legacy product strains and coping with intense competitors from each conventional rivals and new market entrants. Current high quality points and recollects have additional difficult the corporate’s path ahead.
Supply: Investing.com
In keeping with the choices market, merchants are pricing in a swing of about 7% in both path for F inventory following the print. Shares –which fell under $8.50 for the primary time since January 2021 final month– ended Friday’s session at $10.28.
As per InvestingPro, Ford has a Monetary Well being General Rating of two.58, which interprets to a “GOOD” ranking on the dimensions. Nonetheless, the automaker’s publicity to import-dependent provide chains makes it notably weak and will weigh closely on its inventory.
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Disclosure: On the time of writing, I’m lengthy on the S&P 500, and the by way of the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Belief ETF (QQQ). I’m additionally lengthy on the Invesco High QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I commonly rebalance my portfolio of particular person shares and ETFs primarily based on ongoing danger evaluation of each the macroeconomic surroundings 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.
