# Trump’s Trade War, U.S. Jobs Report, and ‘Big Tech’ Earnings: What to Watch This Week
The past week has been a rollercoaster ride for U.S. markets, with President Donald Trump’s announcement of tariffs on Mexico, Canada, and China adding to the volatility. The Nasdaq and S&P 500 ended the week in the red, while the Dow managed to eke out a slight gain. But what lies ahead in the coming week? Let’s take a closer look at the key events and stocks to watch:
## Market Developments and Economic Data
* Investors digested a range of significant events last week, including the launch of China’s DeepSeek AI lab, the Federal Reserve’s decision to keep interest rates steady, and the latest personal consumption expenditures (PCE) data.
* Fresh uncertainty hit the markets on Friday as Trump unveiled new trade measures, including tariffs on imports from Mexico, Canada, and China.
* This week, all eyes will be on Friday’s U.S. jobs report for January, with economists forecasting an addition of 154,000 jobs and an unchanged unemployment rate of 4.1%.
## Earnings Season Continues
* The earnings season is still in full swing, with several high-profile tech companies set to report, such as Alphabet, Amazon, Advanced Micro Devices, and Qualcomm.
* Other notable companies reporting this week include Eli Lilly, Pfizer, Uber, Ford, Disney, and Pepsico.
## Stock To Buy: Amazon
### Overview
Amazon is poised to announce its fourth-quarter earnings report this Thursday, and expectations are running high. Here’s why Amazon is a stock to consider adding to your portfolio:
### Key Points
* Analysts are predicting a 49% increase in earnings per share (EPS) from the year-ago period to $1.49, with revenue expected to grow by 10.2% to $187.3 billion.
* Amazon’s investments in automation and AI are expected to boost operational efficiencies and profit margins.
* The performance of Amazon Web Services will be a key focus, as AWS revenue surged 19% in Q3 to $27.5 billion, reinforcing Amazon’s position in the cloud computing market.
* Amazon’s strong position in e-commerce, advertising, cloud computing, and retail makes it a compelling buy.
## Stock To Sell: Advanced Micro Devices
### Overview
On the other hand, Advanced Micro Devices (AMD) is facing a more challenging outlook as it prepares to report its Q4 earnings this week. Here’s why AMD is a stock to potentially avoid:
### Key Points
* Analysts have lowered their EPS estimates for AMD 30 times in the past three months, signaling potential headwinds for the company.
* AMD operates in a competitive semiconductor market, facing off against Intel in CPUs and Nvidia in GPUs.
* Nvidia’s dominance in AI and data center technology poses a threat to AMD, especially as Nvidia expands its offerings in accelerated computing with new Arm-based CPUs.
* Recent market volatility surrounding the semiconductor sector and news of DeepSeek’s AI advancements have put pressure on AMD’s stock price.
In conclusion, the upcoming week is packed with market-moving events, from Trump’s trade war to key earnings reports. Amazon looks like a strong buy with its anticipated strong Q4 results, while AMD faces challenges ahead. Stay informed, make strategic investment decisions, and position your portfolio for success.
Invest smartly, and remember, knowledge is power in the world of finance! Unveiling Opportunities in the Stock Market: A Comprehensive Analysis
As we kick off the new year, investors are closely monitoring the performance of various stocks. Shares trading below their key moving averages have seen a 4% decline, signaling potential challenges ahead. One such stock drawing attention is AMD, which currently holds a subpar InvestingPro Financial Health score of 2.3 out of 5.0. This rating is attributed to concerns surrounding sales growth and free cash flow, making it a stock to watch amidst the evolving market landscape.
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As we navigate the financial landscape, it’s important to note that the author of this article holds short positions on the S&P 500 through the ProShares Short S&P 500 ETF (SH) and ProShares Short QQQ ETF (PSQ). This strategy involves regular portfolio rebalancing based on ongoing risk assessments of both macroeconomic conditions and individual companies’ financials.
It is crucial to understand that the views expressed in this article are solely the opinion of the author and should not be construed as investment advice. For more insightful analysis and market updates, follow Jesse Cohen on Twitter @JesseCohenInv.
Analysis of the Content:
The rewritten article provides a comprehensive overview of the current stock market scenario, highlighting the performance of shares and the financial health of AMD. It emphasizes the importance of leveraging InvestingPro to make informed investment decisions and minimize risks in a challenging market environment. By outlining key features of the platform, readers gain valuable insights into how they can enhance their investment strategies.
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