This week’s market trend will be determined by the U.S. jobs report and the testimony of Fed Chair Powell.
The stocks on Wall Street experienced a surge on Friday, bringing an end to a tumultuous week. The decrease in Treasury yields has been observed after they reached higher levels.
But investors are still analyzing the possibility of the Federal Reserve implementing stricter policies in the coming months.
For the previous week, the Dow Jones Industrial Average saw an increase of 1.7%, it ended its four weeks of continuous recession.
On the other hand, S&P500 and NASDAQ Stock Exchange also increased by 1.9% and 2.6%. In the upcoming week, Federal Reserve Chairman Jerome Powell’s Congressional testimony will be a significant event.
As the things stand as investors are eagerly seeking additional information on the extent and timing of future interest rate increases. The possible increase in interest remains the hottest news in the stock market in the U.S.
As far as macroeconomic indicators are concerned, the upcoming U.S. employment report for February on Friday will be the most significant economic event for March.
It is expected that the U.S. Department of Labor will present a strong report, but these numbers will be lesser than that of January.
However, regardless of market sentiment, experts have picked a stock to invest in in March and a stock to sell in the current week.
The share of Dick’s Sporting Good Is a Buy Option
Experts do believe that there will be a massive rise in the price of Dick’s Sporting Goods stock. The company is listed on the New York Stock Exchange (NYSE: DKS).
For the remaining week, the company’s share is likely to outperform all the other stocks as its price is set to experience a gigantic rise.
The price of the company’s stock is likely to go beyond its 52-week high price.
One of the leading retail sporting goods providers is likely to share the staggering earning performance for the fourth quarter.
Experts have already started to voice that the company’s revenue figures will surpass the market estimates. Dick’s Sporting Goods will share its fourth quarter’s revenues report on Tuesday, March 7th.
According to the options market, traders are anticipating a notable fluctuation of around 7% in an upward direction for DKS stock after the earnings announcement.
It has been expected that the company’s earnings per share for the fourth quarter would be estimated at $2.89.
Moreover, it has also been expected that the company might show revenues worth $3.44 billion, in its fourth quarter.
There is no doubt about the fact that the current market situation is tough, not only for the retail sector. But for all the other sectors.
Despite these unfavorable conditions, the company has done immensely well to beat Wall Street’s revenue estimates.
It seems that the company’s technical indicators are positive and its price is likely to go up by 7%. Hence, according to market experts, DKS is a buy option.
Experts Believe That Stitch Fix is Sell Option
It is expected that the stock of Stitch Fix which is also listed on (the NASDAQ Stock Exchange as SFIX) is likely plunge in the upcoming weeks.
The personal styling company’s fourth quarter’s revenues are not up to the mark. The company’s earnings are likely to experience another sharp dip in its revenues.
Once the company will share its earnings reports, its price will see a sideways movement of 14% in any direction. Experts have unanimously predicted that its earnings per share will see a decline of $0.33.
While the company’s revenues are estimated to be $413.2 million, this marks a decrease in its revenues by 20% as compared to the previous year.
Hence, it is certain that following these figures investors will rush into the market to sell the company’s stocks.
That is why investors have picked the stock of Stitch Fix as a sell option for the days to come.