As election-year politics tend to be, the stock market has avoided most of the mayhem, with the S&P 500 on track for its best election-year performance since 1976 and its sixth-largest first-half gain since 1990, says Sam Stovall, chief investment strategist at CFRA. The S&P 500 was up in January, and every election year since World War II with a positive January has seen an annual gain, averaging a 15.6% gain, Stovall noted.
Stocks to watch next week include: Meta Platform (META) is trading near a buy point. Tesla TSLA and its EV makers will report June sales on Monday. And Constellation Brands (STZ) reports first-quarter results on Wednesday, and June employment data on Friday could move the market.
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Stocks to watch: 5 stocks in the buy zone
Market breadth has been muted in recent weeks, but investors can find stocks from different groups and sectors giving off buying signals. Monday (MNDY), J.P. Morgan (JPM), Cintas (CTAS) and Burlington Store (BURL) is a diverse list of stocks with breakouts or actionable. All are moving after shallow pullbacks or consolidations. Meta is above and below a buy point in the handle. It is moving higher through early entries after bouncing off support on Monday. JP Morgan is rising on a flat base, breaking a downtrend and within 2% of the handle. Cintas and Burlington are both in buy range above a short consolidation that formed after clearing a standard buy point.
Economic calendar: June data tests employment strength
This holiday-shortened trading week is packed with announcements that could move the stock market. The big question is whether we will finally see a change in employment numbers, the last bastion of economic strength. Friday’s monthly employment report is expected to show a solid 190,000 job gain amid slowing wage growth. The unemployment rate is expected to remain at 4%. Tuesday’s Job Openings and Labor Force Mobility Survey will be the highlight of the labor market data, followed by the ADP employment report and weekly jobless claims. Wednesday sees the release of the Institute for Supply Management’s service sector activity index and the minutes of the June 11-12 Fed meeting.
Stock market week: Profits weak, auto sales in June
The week of July 4 is a relatively quiet one for earnings reports. Modello and Constellation Brands, owner of Corona beer and Robert Mondavi wine, will report first-quarter results before the stock market opens on Wednesday. JPMorgan rates the stock overweight but lowered its price target to 291 on June 20, about 14% higher than Friday’s price. Medical Technology Companies Simulation Plus (SLP) reported on Tuesday. One of the highlights of the week is likely to come on Monday. Tesla, Rivian (RIVN) and Chinese EV makers are expected to report June sales. Chinese rivals are expected to step up their race against Tesla, boosted by ongoing subsidies. U.S. automakers are due to report June sales on Tuesday.
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Market Power Trend Still Alive: Tesla, 5 Stocks in Buy Zone
