4/11- 8/11| Stock Market Recap and Next Week’s Top Picks
- Kanev Chada
- Nov 12, 2024
- 4 min read
The first week of November 2024 was marked by significant market movements, largely influenced by the U.S. presidential election results. The re-election of Donald Trump led to a surge in investor optimism, propelling major stock indices to record highs. The S&P 500 and Nasdaq Composite both rose by 0.3%, while the Dow Jones Industrial Average retreated 0.6%.
Technology Sector Highlights
Meta Platforms (NASDAQ: META): Meta's stock experienced volatility due to ongoing regulatory scrutiny in the European Union concerning its advertising practices. Despite these challenges, the stock closed at $586.65 on November 12, 2024.
Tesla (NASDAQ: TSLA): Tesla's shares fluctuated amid production updates and market dynamics. The stock closed at $332.88 on November 12, 2024.
Apple (NASDAQ: AAPL): Apple's stock remained relatively stable, closing at $224.52 on November 12, 2024, as investors awaited upcoming product announcements and sales reports.
Financial Sector Movements
JPMorgan Chase & Co. (NYSE: JPM): JPMorgan's stock showed resilience, closing at $240.29 on November 12, 2024
Morgan Stanley (NYSE: MS): Morgan Stanley's shares rose slightly and closed at $132.33 on November 12, 2024, reflecting the firm's performance amid market fluctuations.
Energy Sector Developments
Exxon Mobil Corp. (NYSE: XOM): Exxon's stock closed at $120.62 on November 12, 2024, amid discussions of potential acquisitions in the Permian Basin.
Chevron Corp. (NYSE: CVX): Chevron's shares closed at $156.15 on November 12, 2024, as the company announced increased capital expenditure for renewable energy projects.
The energy sector has shown robust performance lately, largely driven by high oil prices and ongoing global supply concerns. Oil prices closed above $89 per barrel this week, supported by production cuts from major producers like OPEC+ and strong demand as economies continue to recover. U.S. energy giants ExxonMobil and Chevron have seen stock price increases, bolstered by news of possible acquisitions to expand production in the Permian Basin. However, the sector is facing challenges, including geopolitical tensions impacting supply chains, particularly in the Middle East. Furthermore, Europe remains cautious due to potential gas shortages this winter, as Russia's supply restrictions continue to affect the region. In response, companies like Chevron are ramping up investments in renewable energy, positioning themselves to balance traditional oil revenue with future-proof, sustainable sources. This strategic shift reflects an industry adapting to both immediate challenges and long-term energy transition trends.
Market Overview and Economic Outlook
The re-election of President Trump has been perceived positively by investors, with expectations of continued pro-business policies. However, concerns remain regarding potential trade tensions and regulatory changes. The Federal Reserve's monetary policy decisions will be closely monitored, especially in light of the recent election outcome.
Weekly Market Statistics (as of November 8, 2024)
Dow Jones Industrial Average: Closed at 44,000, up 0.3% for the week.
S&P 500 Index: Closed at 6,000, up 0.3% for the week.
Nasdaq Composite: Closed at 16,691, up 0.3% for the week.
10-Year Treasury Yield: Closed at 4.309%, reflecting investor sentiment towards future interest rate movements.
Oil Prices: Closed at $89.12 per barrel, influenced by global supply and demand dynamics.
Upcoming Events and Earnings Reports
Earnings Reports: Companies such as Delta Air Lines, JPMorgan Chase, and UnitedHealth Group are scheduled to release earnings reports in the coming weeks, providing insights into their financial health and sector performance.
Economic Indicators: The release of the Consumer Price Index (CPI) and Producer Price Index (PPI) data will offer further clarity on inflation trends, potentially influencing Federal Reserve policy decisions.
Top Stock Picks for the Next Week
Palantir Technologies (NYSE: PLTR) - Buy
Palantir closed at $59.47 on November 12, 2024, and remains a strong buy due to its expanding role in artificial intelligence (AI) across both government and commercial sectors. The firm’s focus on advanced analytics for security and defence has seen strong institutional backing, particularly with recent U.S. government contracts. Palantir’s consistent revenue growth and strategic AI initiatives position it for further upward momentum. With the AI sector booming, Palantir’s software solutions for data-driven decision-making make it a compelling investment. Its solid fundamentals and competitive edge in AI-based analytics support continued growth in a rapidly advancing industry.
Nvidia (NYSE: NVDA) - Buy
NVIDIA closed at $147.63 on November 12, 2024, and is considered a buy due to its leadership in the AI chip market. The company's GPUs are integral to AI applications, data centers, and autonomous vehicles. Analysts project the AI accelerator market to grow significantly, with NVIDIA well-positioned to benefit from this trend. The company's strong financial performance, driven by demand for AI and machine learning solutions, supports its growth trajectory. NVIDIA's strategic partnerships and continuous innovation in AI technologies make it a compelling investment opportunity in the tech sector
Pfizer Inc. (NYSE: PFE) - Buy
Pfizer, closing at $26.11 on November 12, 2024, is rated a buy, bolstered by recent FDA approval of its RSV vaccine, a significant revenue opportunity. With increasing demand for vaccines and treatments, Pfizer’s robust pipeline in immunology and oncology supports future growth. The firm’s continued investment in research, especially for age-related diseases, positions it to address critical health needs worldwide. Pfizer’s commitment to diversifying its portfolio, combined with strategic acquisitions, is expected to drive long-term profitability. Despite short-term price fluctuations, the company’s fundamentals and growth outlook make it an attractive buy for patient investors looking to capitalise on health sector advancements.
This recap provides an overview of the stock market's key events and trends from November 4 to November 8, 2024. Please do note that investing is a risk, and only invest what you are willing to lose. Happy Investing!