Market Outlook for the Week
- Tariff headlines, ‘Mag 7’ earnings, U.S. jobs report, and PCE inflation data in focus
- Meta Platforms expected to report strong earnings amidst improving digital ad market
- Pfizer’s anticipated earnings dive and sales decline suggest caution
The stock market closed higher last week, driven by hopes of easing U.S.-China trade tensions. The S&P 500 rose 2.5%, the Dow Jones jumped 4.6%, and the Nasdaq soared 6.7%.
More volatility may be on the horizon this week as investors analyze the economy, inflation, interest rates, and corporate earnings amid the ongoing trade war.
Earnings Season Highlights
- Microsoft, Meta Platforms, Apple, and Amazon among tech giants reporting earnings this week
- Other notable companies include Qualcomm, ExxonMobil, Chevron, Eli Lilly, and more
- U.S. employment report on Friday expected to show 129,000 job additions in April
In addition to the jobs report, key economic data like first-quarter GDP and core PCE price index will be released, impacting market direction.
Stock To Buy: Meta Platforms
Meta Platforms is poised for a strong Q1 earnings report this Wednesday. The company’s investments in AI and large user base across various platforms make it an attractive stock to buy. Analysts project solid revenue and earnings growth for Meta.
Despite market volatility and trade tensions, Meta’s diverse revenue streams and AI investments position it well for long-term growth. The company’s upcoming event showcasing AI advancements adds to its appeal.
META stock closed at $547.27 on Friday, with a strong Financial Health Overall Score of 3.22. Analysts are bullish on Meta, with a mean price target of $713.63, indicating potential upside of 30.4%.
Stock to Sell: Pfizer
On the flip side, Pfizer faces challenges ahead of its Q1 earnings release. Declining demand for COVID-19 products and competition in its non-COVID portfolio pose risks. Analysts expect a significant drop in earnings and revenue for Pfizer.
Factors like patent expiration and increased competition weigh on Pfizer’s growth prospects. The stock closed at $22.92 on Friday, down 13.6% in 2025. While Pfizer maintains a "GOOD" Financial Health Overall Score of 2.86, its near-term growth outlook is uncertain.
In conclusion, investors should closely monitor earnings reports, economic data, and market trends this week to make informed decisions. Meta Platforms presents growth potential, while caution is advised with Pfizer due to its challenges. Stay updated with InvestingPro for actionable trade ideas and stay ahead in the market. Subscribe now for 50% off and position your portfolio strategically for the week ahead. Are you ready to take your investment game to the next level? Look no further than InvestingPro, the ultimate tool to help you navigate the complex world of investing with confidence and ease.
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Disclosure: At the time of writing, the author is long on the S&P 500 via the SPDR® S&P 500 ETF (SPY), the Invesco QQQ Trust ETF (QQQ), the Invesco Top QQQ ETF (QBIG), and the Invesco S&P 500 Equal Weight ETF (RSP). The author regularly rebalances their portfolio based on ongoing risk assessments of the macroeconomic environment and individual companies’ financials.
Disclaimer: The views expressed in this article are the author’s own and should not be construed as investment advice.
For more insightful stock market analysis and expert commentary, follow Jesse Cohen on Twitter @JesseCohenInv.
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