The S&P 500 and Nasdaq nabbed record closed this week
Wall Street made the most out of its shortened trading week, with the Fourth of July holiday condensing trading days to less than four. All three major indexes are pacing toward healthy weekly wins, while the Nasdaq Composite (IXIC) and S&P 500 Index (SPX) eyeing fourth consecutive daily gains after both saw record closes this week.
Several bouts of economic data were in focus, as well as remarks from Federal Reserve Chairman Jerome Powell acknowledging inflation progress, though he also noted the central bank is not ready to cut interest rates. Regardless, June's jobs data pointed to a softening labor market, which renewed traders' rate cut hopes. Wall Street also had a 48.8% service sector activity reading by the Institute for Supply Management (ISM) to unpack, as well as higher-than-expected unemployment rate.
Best and Worst Stocks to Own
With the shortened week came a fresh month and quarter, so we took a look at the best and worst stocks to own for each period. The list of 25 worst stocks for the third quarter includes Freeport-McMoRan (FCX) and Newmont Corporation (NEM), and for the month steer clear of energy giants Exxon Mobile (XOM) and Marathon Oil (MRO).
The list of the 25 best stocks to own this quarter features tech giants Apple (AAPL) and Alphabet (GOOGL), while Target (TGT) and Costco Wholesale (COST) are some of the best stocks to own in July. Plus, Home Depot (HD) and XOM are among the best and worst stocks for the second half of the year, respectively.
Bank Earnings, More Inflation Data Next Week
Some notable names are reporting earnings next week, including big banks JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C), as well as Delta Air Lines (DAL) and PepsiCo (PEP). Consumer credit, wholesale inventories, and jobs data are on the schedule, in addition to consumer price index (CPI) and producer price index (PPI) readings.
Our Senior Quantitative Analyst Rocky White took a closer look at what to expect from stocks after a strong first half of the year. Plus, Schaeffer's Senior Market Strategist Matthew Timpane chimed in on spiking short interest leading up to the historically bullish month of July.