- ADP jobs report, ISM PMI surveys, and extra AI-linked tech earnings might be in focus this week.
- Palantir is anticipated to report robust earnings and steering, making it an interesting inventory to purchase.
- Pfizer’s anticipated earnings dive and gross sales decline counsel a extra cautious strategy.
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Shares on Wall Avenue ended greater on Friday, with the foremost indices notching robust weekly and month-to-month features as traders shook off authorities shutdown fears and renewed commerce warfare tensions.
Supply: Investing.com
The benchmark S&P 500 rose 0.7% for the week and round 2% in October. The tech-heavy Nasdaq Composite superior 2.2% on the week and 4.2% for all of October, capping a 7-month successful streak, its longest since early 2018.
In the meantime, the 30-stock Dow Jones Industrial Common tacked on 0.8% through the week and 1.7% for the month. The Dow posted its sixth optimistic month in a row for the primary time since 2018.
Extra volatility may very well be in retailer within the coming days as traders assess the outlook for the financial system, inflation, rates of interest and company earnings amid the extended U.S. authorities shutdown.
The federal shutdown seems set to cancel one other month-to-month Bureau of Labor Statistics jobs report, usually due on Friday. As such, Wednesday’s launch of the ADP employment report for October takes on further significance. As well as, the ISM manufacturing and providers PMIs will even be intently watched.
Supply: Investing.com
On Friday, merchants have been pricing in a 60% chance of a December price lower, down from 98% every week in the past, following hawkish feedback from varied Fed officers, together with chair Jerome Powell.
Elsewhere, the busy earnings season continues with experiences due from a number of notable firms comparable to Superior Micro Units, (NASDAQ:PLTR), Robinhood, Tremendous Micro Laptop, Qualcomm, ARM Holdings, Shopify, McDonald’s, (NYSE:PFE), Novo Nordisk, Uber, DoorDash, Airbnb, AppLovin, and DraftKings.
As well as, Tesla hosts an important annual shareholder assembly on Thursday. In focus are the votes for CEO Elon Musk’s new $1 trillion pay bundle and Tesla funding in Musk’s synthetic intelligence firm xAI.
No matter which route the market goes, beneath I spotlight one inventory prone to be in demand and one other which might see recent draw back. Bear in mind although, my timeframe is simply for the week forward, Monday, November 3 – Friday, Nov. 7.
Inventory To Purchase: Palantir
Palantir has been on a tear in 2025, with shares surging 165% year-to-date, buying and selling at all-time highs round $200. The corporate’s AI Platform (AIP) is fuelling this rally, reworking how enterprises and governments deal with large datasets for real-time decision-making.
Forward of its Q3 earnings on Monday after market shut, analysts are forecasting a blockbuster quarter and powerful forward-looking steering that might propel the inventory even greater. A name with CEO Alex Karp is deliberate for five:00PM ET.
Market members foresee a large swing in PLTR inventory after the print drops, based on the choices market, with a attainable implied transfer of +/-10.5% in both route. Shares gapped up 12% after the final earnings report in August.
Supply: InvestingPro
Revenue estimates have been revised upward 20 occasions within the final 90 days, in comparison with zero downward revisions, reflecting rising confidence amongst analysts. Adjusted EPS is pegged at $0.17, a 70% soar from final 12 months. Income is projected to surge 50% yearly to $1.09 billion, amid booming demand for its AI-powered software program options, notably inside U.S. authorities businesses and the protection sector.
Moreover, Palantir is well-positioned to safe profitable contracts from U.S. industrial companies prioritizing software program and AI options over conventional {hardware} and tools.
Potential chatter a couple of inventory break up might be of particular curiosity.
Supply: Investing.com
PLTR inventory closed at $200.47 on Friday, simply off its all-time excessive of $202.06. Regardless of considerations about its valuation, the technical image for Palantir is exceptionally robust, with “robust purchase” consensus throughout all main timeframes. With an RSI of 71, the inventory is in overbought territory—sometimes a cautionary signal, however within the context of pre-earnings momentum and powerful fundamentals, this implies highly effective shopping for stress.
As InvestingPro factors out, Palantir flashes a Monetary Well being Total Rating of three.46 (“GREAT” label, Grade B), powered by EXCELLENT grades in worth momentum, revenue, money circulate, and development.
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Inventory to Promote: Pfizer
In stark distinction, Pfizer continues to wrestle with a number of headwinds, reporting what is anticipated to be one other quarter of declining gross sales and earnings.
The pharmaceutical big is scheduled to ship its Q3 monetary outcomes on Tuesday at 6:45AM ET and the outlook is bleak. Market members count on a attainable implied transfer of +/-4.7% in both route in PFE inventory after the print drops.
The core problem for Pfizer is the dramatic and ongoing collapse of its COVID-19 franchise income. Past the COVID income decline, Pfizer confronts the continuing problem of patent expirations on key merchandise which have traditionally pushed vital parts of the corporate’s profitability.
Supply: InvestingPro
Wall Avenue has grown more and more bearish on PFE forward of the report, with all 15 of analysts surveyed by InvestingPro revising revenue estimates downward over the previous three months.
Pfizer is seen incomes $0.66 per share, marking a steep 37.7% drop from the prior 12 months. In the meantime, income is forecast to fall 5% year-over-year to $16.8 billion amid elevated competitors in its non-COVID portfolio.
Buyers will seemingly look ahead to extra information on Pfizer’s contested battle with Novo Nordisk to accumulate weight problems participant Metsera. Extra importantly, any cautious steering for the rest of the 12 months may very well be punished by a market that’s searching for development, not simply administration of decline.
Supply: Investing.com
PFE inventory ended Friday’s session at $24.65. Technically, the each day and weekly indicators level to “promote” or “robust promote,” flagging persistent downward stress. The inventory sits and never far above its 52-week low ($20.91), suggesting any rebound faces stiff resistance.
It’s value noting that Pfizer posts a 2.98 Monetary Well being Rating, reflecting considerations round money circulate and dwindling development prospects.
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Disclosure: On the time of writing, I’m lengthy on the S&P 500, and the Nasdaq 100 by way of the SPDR® S&P 500 ETF (SPY), and the . I’m additionally lengthy on the , Invesco S&P 500 Equal Weight ETF (RSP), and .
I recurrently rebalance my portfolio of particular person shares and ETFs based mostly on ongoing threat evaluation of each the macroeconomic surroundings and corporations’ financials.
The views mentioned on this article are solely the opinion of the writer and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
