Next week, the market could face a significant test with the release of key economic data – the Consumer Price Index (CPI) and Producer Price Index (PPI). These indicators will help confirm whether the strong momentum we’ve seen in the market recently can continue or if it’s just a temporary boost.
This past week, the markets surged as investors welcomed the clarity of the presidential election results and anticipated a Federal Reserve interest rate cut. But there’s still some uncertainty: Is this rally just a reaction to recent events, or could it be the start of a bigger, long-term rise? Only time will tell, and there’s a chance we could see some investors taking profits as they adjust their portfolios for 2025.
For now, money is flowing into the market with expectations that public policies like lower taxes and reduced regulations will support growth. Historically, these conditions have been good for stocks. However, inflation continues to be a concern. If CPI and PPI reports show that inflation is still high, it could slow down the expected pace of interest rate cuts in 2025.
The key takeaway for investors right now is that this is still a good time to be involved in the market. Whether you’re trading short-term or investing long-term, keeping an eye on the latest developments is essential. Let’s dive into some of the most talked-about stories from this past week.
**Cruise Line Comeback**
The cruise industry has seen a strong recovery in 2024, with demand even surpassing pre-pandemic levels. Two companies that are grabbing attention are Royal Caribbean and Carnival. They have different business models, and understanding those differences can help investors determine which one has more potential upside.
**Biotech Boom**
Biotech stocks can be risky, especially clinical-stage companies. But one company catching attention is Summit Therapeutics. Its stock has skyrocketed over 700% this year, and there may still be more room for growth as its lead drug candidate shows signs of outperforming one of the leading cancer treatments on the market.
**Battery Breakthrough**
Battery companies have struggled recently due to an oversupply in the market. However, this could actually be a great time to look at Enovix. The company is ramping up production of its advanced batteries, which are designed to meet the higher power demands of new AI-powered devices.
**Trump Trade and Gold Outlook**
Many investors are betting on how Trump’s policies might affect the market in 2025. While his proposed policies could have an impact on various sectors, one thing that likely won’t change is gold’s outlook. Lower interest rates and government spending are expected to continue boosting gold prices in the upcoming year.
**Weight Loss Drug Surge**
Weight loss drugs were among the top-performing stocks in 2024. Eli Lilly, in particular, saw massive gains. But as competition increases in this space, analysts are also raising their expectations for Eli Lilly stock in 2025.
**Intel’s Struggles and Turnaround Hopes**
Intel has had a tough 2024 as it struggles to keep up with competitors. But a solid earnings report and better analyst outlooks suggest that now could be a good time to buy while others are hesitant.
**Qualcomm’s Rebound**
Another tech stock to watch is Qualcomm. After reaching an all-time high earlier this year, the stock dropped significantly. However, recent strong earnings are starting to create a more optimistic outlook for 2025.
**Crypto Surge Post-Election**
Bitcoin and Ethereum have surged since Trump’s election, sparking conversations about whether we’re entering a “crypto presidency.” For those wanting exposure without directly buying cryptocurrencies, Coinbase is one stock to consider. However, there are also reasons why some might prefer to stay on the sidelines.
**Palantir Keeps Rising**
Palantir continues its upward trajectory after another blowout earnings report. Despite questions about its valuation, some analysts believe there’s still time to get in on this stock before it climbs even higher.
**Opportunities in Small-Cap Stocks**
Small-cap stocks are often seen as leaders in a new bull market, and recent performance from the Russell 2000 index supports that view. There are several small-cap names that traders might want to target now.
**Gold’s Big Move Isn’t Over**
Gold has already hit all-time highs in 2024, but analysts believe there’s more upside ahead. Some are even predicting that gold could hit $3,000 per ounce or higher.
**Space Race Heats Up**
While you can’t invest directly in Elon Musk’s SpaceX, there are other companies trying to compete in the satellite space. These companies could offer exciting opportunities for investors looking to get involved in this growing market.
**AI Speech Recognition Stock Soars**
SoundHound AI has seen its stock rise over 220% this year, thanks in part to its partnership with NVIDIA. With earnings coming up soon, there may still be room for more growth.
**New GLP-1 Drug Candidate Gains Attention**
The weight loss drug market is getting crowded, but one company making waves is Altimmune. Its lead drug candidate is showing promise by addressing one of the biggest side effects of current treatments—muscle loss.
**Retail Stocks to Watch This Holiday Season**
As we approach the holiday season, some retail stocks may outperform their competitors. Keeping an eye on these names could lead to potential gains for investors looking for seasonal plays.
**Renewable Energy Still Has Potential**
Even though renewable energy stocks are under pressure with expectations of less favorable policies under Trump’s administration, there may still be opportunities here. First Solar is one stock that could benefit as demand for solar energy continues to grow.
**Hydrogen Stocks Hold Long-Term Promise**
Hydrogen stocks have long been touted as a clean energy solution. While some investors are focusing on nuclear energy, hydrogen still offers potential for those willing to be patient and focus on industry-leading names.
Before making any trades or investment decisions, it’s important to stay informed about which stocks top analysts are quietly recommending to their clients right now. These insights can help you stay ahead of broader market trends and identify hidden opportunities.