Stocks Dip Amid Mixed Economic Signals and Upcoming Retail Earnings

As stocks experienced a downturn this week, investors shifted from initial excitement over recent election results to the more complex realities of the market. The latest inflation figures indicate that the Federal Reserve’s 2% target will be difficult to achieve for the foreseeable future. Additionally, Fed Chair Jerome Powell hinted at a potential pause in rate cuts in December, further influencing investor sentiment.

Despite these challenges, even the lowered corporate tax rates promised by the Trump administration could positively impact corporate earnings and subsequently boost stock prices. This upcoming week, many of the nation’s top retailers will report their earnings, following a slight increase in retail sales for October. Investor focus will be on the forecasts provided by these retailers for the busy holiday season.

The potential for an end-of-year market rally remains optimistic, with the MarketBeat team prepared to guide investors toward promising stocks. Here are some highlights from our recent articles:

Insights from Jea Yu

As investors ponder the future of Donald Trump’s tariff policies, Jea Yu suggests that the incoming administration will prioritize strengthening the U.S. supply chain, particularly for steel, semiconductors, and automobiles. With this in mind, Yu identifies three “Made in America” stocks worth considering for 2025.

The chip industry continues to be unpredictable, especially as firms seek alternatives to NVIDIA Corp. (NASDAQ: NVDA) components. OpenAI is one such company, and Yu examines two chip stocks positioned to benefit from OpenAI’s strategic moves.

Moreover, seasoned investors recognize that future guidance often matters more than initial earnings figures. Yu also highlights three stocks that have seen significant gains after delivering strong earnings and raising their forecasts for the year.

Analysis by Thomas Hughes

SoundHound AI Inc. (NASDAQ: SOUN) has emerged as a standout stock this year, boasting a share price increase of over 200% in 2024. Thomas Hughes explains why this leader in conversational AI is likely to continue its upward trend into 2025.

Investor reactions often create opportunities; Hughes notes how monday.com Ltd. (NASDAQ: MNDY) fell more than 10% following cautious yet optimistic guidance. He explores the stock’s potential for recovery.

While a recent market selloff has raised concerns about a larger downturn, Hughes presents an optimistic view of the macroeconomic landscape, arguing that the S&P 500 could climb by 20% before the rally concludes.

Commentary from Sam Quirke

Cybersecurity stocks are positioned for attention in 2025, particularly Zscaler Inc. (NYSE: ZS), which has surged 30% since September, despite an overall slower performance this year. Analysts are optimistic ahead of its earnings report due in early December.

Meta Platforms Inc. (NASDAQ: META) has soared 70% this year, yet Quirke discusses how analysts are maintaining high price targets despite rising expenditure concerns. This makes it a strong candidate to perform well into 2025.

Although Salesforce Inc. (NYSE: CRM) has taken the spotlight, Quirke spots a promising mid-cap contender, Freshworks Inc. (NASDAQ: FRSH), which has gained traction since its October earnings release.

Contributions from Chris Markoch

Rocket Lab USA Inc. (NASDAQ: RKLB)‘s impressive earnings report, featuring a record number of launches, has sparked renewed interest. Chris Markoch discusses why this company stands out in the burgeoning space sector.

Meanwhile, Celsius Holdings Inc. (NASDAQ: CELH), known for its healthy energy drinks, faced distribution challenges this year. Markoch reviews its outlook and the implications of its recent earnings.

With Bitcoin hitting all-time highs due to a favorable regulatory environment, Markoch suggests that investing in Bitcoin mining stocks like MARA Holdings Inc. (NASDAQ: MARA) may be a strategic alternative.

Evaluations from Ryan Hasson

Aspiring growth-focused investors may find the latest equity rally promising. However, for those prioritizing income generation, high-yield dividend stocks remain a consistent choice. This week, Ryan Hasson analyzes three blue-chip stocks that deliver solid income for conservative investors.

The industrial sector has seen mixed results, but Vertiv Holdings Co. (NYSE: VRT) could benefit from reduced corporate tax rates, showcasing a stock price increase of over 150% this year. Hasson outlines the company’s upward potential into 2025.

Additionally, Hasson assesses Costco Wholesale Corp. (NASDAQ: COST), which has risen more than 30% in 2024, explaining the reasons investors might consider buying now as it reaches an all-time high.

Insights from Gabriel Osorio-Mazilli

Tesla Inc. (NASDAQ: TSLA) has captured investor attention post-election. Despite being a contentious stock, Osorio-Mazilli explains why many analysts advocate for its growth potential and premium pricing.

Additionally, those anticipating a decline in solar stocks under a Trump administration may be mistaken. Osorio-Mazilli discusses three solar stocks that could offer growth opportunities at attractive valuations.

For more predictable investments post-election, Osorio-Mazilli highlights three trucking stocks that have shown impressive gains and may continue their upward trajectory.

Analysis by Leo Miller

Special dividends can feel like a delightful surprise for investors, as they occur irregularly and can indicate a company’s strong performance. Miller highlights three companies with histories of providing special dividends to their shareholders.

For those avoiding high-risk growth ventures, Miller evaluates three stocks offering growth at reasonable prices (GARP), which seem undervalued compared to their potential.

Penny stocks are inherently unstable; however, Globalstar Inc. (NASDAQ: GSAT) has surged 53% following its partnership with Apple Inc. (NASDAQ: AAPL). Leveraging low earth orbit satellites for services beyond traditional coverage, it could emerge as an influential player in the space economy.

Insights from Nathan Reiff

This week, Nathan Reiff examined the CRM market, which is projected to grow by nearly $70 billion from 2024 to 2029. He argues that HubSpot Inc. (NYSE: HUBS) could emerge as a real competitor to market leader Salesforce (NYSE: CRM).

Reiff also explored three healthcare stocks that balance risk and reward, potentially positioning themselves for strong performance in 2025. For those seeking faster returns, he detailed three rapidly growing stocks believed to have the potential to double in value.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.