Mixed Performance in US Indices Amid Weak Retail Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy AMAT?
Source: NASDAQ.COM
- Retail Sales Stagnation: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth prospects.
- Employment Cost Index Decline: The US Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, which may prompt the Fed to reconsider its interest rate policy, further supporting the stock market.
- Optimistic Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected to reach +8.4%, providing support for the market despite the poor overall economic data.
- Market Focus on Upcoming Data: This week, the market will focus on upcoming economic data and corporate earnings, including an expected increase of 69,000 in January nonfarm payrolls and an unemployment rate holding steady at 4.4%, which will significantly influence market sentiment.
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Analyst Views on AMAT
Wall Street analysts forecast AMAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMAT is 288.05 USD with a low forecast of 190.00 USD and a high forecast of 425.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 330.570
Low
190.00
Averages
288.05
High
425.00
Current: 330.570
Low
190.00
Averages
288.05
High
425.00
About AMAT
Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mixed Performance in US Indices Amid Weak Retail Sales
- Retail Sales Stagnation: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth prospects.
- Employment Cost Index Decline: The US Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, which may prompt the Fed to reconsider its interest rate policy, further supporting the stock market.
- Optimistic Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected to reach +8.4%, providing support for the market despite the poor overall economic data.
- Market Focus on Upcoming Data: This week, the market will focus on upcoming economic data and corporate earnings, including an expected increase of 69,000 in January nonfarm payrolls and an unemployment rate holding steady at 4.4%, which will significantly influence market sentiment.
See More
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- Precious Metals Surge: Mining stocks rallied as gold prices increased by 2% and silver surged over 6%, with Coeur Mining and Hecla Mining gaining more than 7% and 5% respectively, highlighting the positive impact of strong performance in the precious metals market on related stocks.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth projected at 8.4%, which is likely to further boost market sentiment and enhance investor confidence.
- Economic Data Focus: The market will closely watch upcoming economic data releases, including the employment cost index and retail sales figures, which are expected to significantly influence future monetary policy and market trends.
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- Energy Sector Opportunities: Although energy comprises only 6.4% of CGDV's portfolio, Buchbinder sees an upcycle in the oil field services sector over the next few years, particularly with Halliburton's collaboration with VoltaGrid to manufacture power systems for AI data centers, indicating long-term growth potential.
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- Key Holdings Contribution: Among the ETF's top ten holdings, Micron Technology led with a 45.4% stock price increase in January, primarily driven by strong demand for memory chips, which boosted the overall ETF performance.
- Strong Earnings Expectations: Nvidia, the ETF's largest holding at 18.3%, is set to report earnings on February 25, with management guiding for quarterly revenue of $65 billion, a 65% year-over-year growth, which could serve as a significant catalyst for future ETF performance.
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- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
Mixed Performance in US Indices Amid Weak Retail Sales
- Retail Sales Stagnation: US December retail sales were unchanged month-over-month, falling short of the +0.4% expectation, indicating weakness in consumer spending that could lead to a downward revision in Q4 GDP, thereby impacting overall economic growth prospects.
- Employment Cost Index Decline: The US Q4 employment cost index rose by 0.7% quarter-over-quarter, below the expected 0.8%, marking the smallest increase in 4.5 years, which may prompt the Fed to reconsider its interest rate policy, further supporting the stock market.
- Optimistic Earnings Outlook: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected to reach +8.4%, providing support for the market despite the poor overall economic data.
- Market Focus on Upcoming Data: This week, the market will focus on upcoming economic data and corporate earnings, including an expected increase of 69,000 in January nonfarm payrolls and an unemployment rate holding steady at 4.4%, which will significantly influence market sentiment.
See More
US Stocks Rise on Monday as Tech Stocks Rebound
- Market Recovery: The S&P 500 Index rose by 0.47% on Monday, with the Dow Jones Industrial Average hitting an all-time high, indicating a strong recovery in the market following rebounds in tech stocks and chipmakers, reflecting investor confidence in economic recovery.
- Precious Metals Surge: Mining stocks rallied as gold prices increased by 2% and silver surged over 6%, with Coeur Mining and Hecla Mining gaining more than 7% and 5% respectively, highlighting the positive impact of strong performance in the precious metals market on related stocks.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth projected at 8.4%, which is likely to further boost market sentiment and enhance investor confidence.
- Economic Data Focus: The market will closely watch upcoming economic data releases, including the employment cost index and retail sales figures, which are expected to significantly influence future monetary policy and market trends.
See More
Capital Group Identifies Attractive Dividend Stock Opportunities
- Dividend Stock Appeal: Christopher Buchbinder from Capital Group highlights the attractiveness of dividend stocks, particularly those rated investment grade with a long history of income payments, which has allowed the CGDV fund to outperform the S&P 500 in down markets.
- Tech Sector Allocation: As of January 31, 26.8% of CGDV's assets are allocated to information technology, particularly semiconductor companies, reflecting the team's confidence in a sustainable AI investment cycle, with expectations that AI will dramatically change lives over the next 5-10 years.
- Energy Sector Opportunities: Although energy comprises only 6.4% of CGDV's portfolio, Buchbinder sees an upcycle in the oil field services sector over the next few years, particularly with Halliburton's collaboration with VoltaGrid to manufacture power systems for AI data centers, indicating long-term growth potential.
- Healthcare Investment: CGDV's largest healthcare holding is Eli Lilly at 3.86%, with Buchbinder believing that the long-term trend of GLP-1 drugs will transform the healthcare landscape in the U.S., positioning Eli Lilly as the market leader while awaiting FDA approval for its oral GLP-1 drug.
See More
VanEck Semiconductor ETF Gains 12% in January
- Strong January Performance: The VanEck Semiconductor ETF surged 12% in January, significantly outperforming the S&P 500's 1.5% increase, indicating a robust recovery in the semiconductor sector and heightened investor confidence.
- Key Holdings Contribution: Among the ETF's top ten holdings, Micron Technology led with a 45.4% stock price increase in January, primarily driven by strong demand for memory chips, which boosted the overall ETF performance.
- Strong Earnings Expectations: Nvidia, the ETF's largest holding at 18.3%, is set to report earnings on February 25, with management guiding for quarterly revenue of $65 billion, a 65% year-over-year growth, which could serve as a significant catalyst for future ETF performance.
- Exceptional Long-Term Returns: As of February 6, the VanEck Semiconductor ETF has delivered a 62.2% return over the past year, quadrupling the S&P 500's 15.4% return, underscoring its investment value in the AI and semiconductor sectors.
See More
High-Volume Earnings Reports This Week from Tech and Consumer Sectors
- Earnings Schedule: This week features a high volume of earnings reports from technology, consumer discretionary, and energy sectors, with RIVN stock showing notable movement ahead of its earnings release, indicating investor sentiment.
- Monday.com and Pagaya Reports: On Monday, work management SaaS provider Monday.com and fintech company Pagaya released their earnings before the market opened, with expectations that their results will reflect broader industry trends.
- Coinbase Earnings Expectations: On Thursday, Coinbase is expected to report earnings of 68 cents per share and quarterly revenue of $1.86 billion, despite facing a projected 33% drop in transaction revenue, raising investor interest in its growing stablecoin and subscription services.
- Nebius Group Forecast: Also on Thursday, Nebius Group is projected to report a loss of $1.14 per share and revenue of $246.05 million, with analysts expressing caution, reflecting concerns over cloud service demand in the current market environment.
See More
Movers: Hims & Hers, Novo Nordisk, Micron, Kroger, STMicroelectronics, Nvidia, and Others
- Stock Market Trends: Stock futures were declining on Monday as investors expressed concerns about the sustainability of a recent relief rally.
- Investor Sentiment: There is a prevailing uncertainty among investors regarding the market's ability to maintain upward momentum following last week's gains.
See More
