Stocks had their best week so far this year after a flurry of economic data rekindled hopes that a recession would be averted.
Stocks rose for a seventh straight session, halting a four-week streak of losses that was fuelled in part by concerns that the Fed was not cutting borrowing costs fast enough to prevent a deeper economic slowdown.
Data released this week showed inflation slowing, strengthening confidence that the Fed can achieve a soft landing and significantly boosting market optimism. Wall Street's benchmark S&P 500 index rose more than 4% this week, while the tech-heavy Nasdaq 100 surged more than 5%, both its biggest gains since November.
Most of the large caps rose, led by Nvidia (NVDA), and gold also rose above $2,500 for the first time on hopes that the Fed is closer to cutting interest rates.
As U.S. stocks recover and second-quarter earnings season draws to a close, here are some trending stocks for the week.
NVIDIA (NVDA) is up 17% over the past week, its biggest one-week gain in more than a year. The AI chipmaker is scheduled to report second-quarter results on August 28, with consensus estimates calling for earnings per share of $0.64 on revenue of $28.54 billion.
Several pharmaceutical companies were in the spotlight after the U.S. government released final prices for the first 10 Medicare Part D drugs negotiated under the Biden administration's Inflation Control Act on Thursday. Merck's (MRK) diabetes drug Januvia faces a 79% price cut, the steepest cut in percentage terms. Novo Nordisk's (NVO) (OTCPK:NONOF) insulin drug Fiasp follows a 76% price cut, while AstraZeneca's (AZN) diabetes drug Farciga faces a 68% price cut.
Sea Limited (SE) shares rose nearly 18.5% this week after the company reported strong second-quarter results that reflected growth across all business segments. Revenue beat expectations, helped by strength in its e-commerce division. The Singapore-based company, which runs e-commerce platform Shopee, was upgraded to “overweight” by JP Morgan on expectations of a material improvement in e-commerce profitability.
Keranova (K) closed up 8.5% over the weekend, buoyed by Mars' $39.5 billion acquisition of the packaged-foods company. The deal, at $83.50 a share, is expected to close in the first half of 2025. CNBC's David Ferber noted that snack bars are the only area where the deal could have antitrust overlaps, and that the combined company would control more than a quarter of the market.
Walmart (WMT) rose 7.5% over the five-day trading period, hitting a record high during the week, after the retail giant raised its full-year outlook and said all parts of its business were performing well. U.S. same-store sales beat consensus expectations and e-commerce sales rose 21% during the quarter. Notably, its global advertising business grew about 26%.
Cisco Systems (CSCO) rose 8.5% this week after recent acquisitions boosted revenue by about $1 billion and the company reported better-than-expected fourth-quarter results. The company also announced plans to cut about 7% of its global workforce and a strategic shift to AI and cybersecurity.
Nike (NKE) hit its highest price in more than eight years after billionaire investor Bill Ackman's Pershing Square Capital Management bought about 3 million new shares of the company, valuing them at about $229 million. The stock is likely to continue to rise as Wall Street analysts increasingly point to a gradual recovery in the company's performance.
Starbucks (SBUX) rose 24% as investors reacted very favorably to the Seattle-based coffee chain's CEO change. The company announced on Tuesday that it was replacing CEO Lakshman Narasimhan with Brian Niccol, CEO of Chipotle Mexican Grill (CMG), who will take up the role almost immediately.
Victoria's Secret (VSCO) is up 20% in a week after the lingerie retailer reported preliminary second-quarter adjusted earnings per share that beat analysts' average estimate. The company also named Hilary Super, formerly CEO of Rihanna's lingerie brand, as CEO.
Rocket Lab USA (RKLB) rose 21% after the company successfully packed and shipped two Mars-bound spacecraft to Cape Canaveral, Fla., in preparation for launch. Shares were up 14.6% in morning trading on Friday, hitting a new 52-week high of $7.09.
B. Riley Financial (RILY) has had an eventful week. Shares fell 52% on Monday and 34% over the week after the company announced it would suspend its common dividend as it focuses on reducing debt. The financial services platform also expects a second-quarter net loss of $433 million to $475 million, or $14 to $15 per share, driven primarily by losses on its Franchise Group (“FRG”) investment and Vintage Capital loan receivables. Shares fell further after it was reported that the U.S. Securities and Exchange Commission is investigating whether B. Riley (RILY) adequately disclosed risks associated with some of its assets.
