World Stock Watch

Market Outlook: Key Events and Stock Picks for the Week Ahead

The week ahead is shaping up to be an eventful one, with several key events that could impact the market. These include the release of initial jobless claims figures, flash PMI surveys, and a slew of Fed speakers. Additionally, third-quarter earnings season will be in full swing, with reports expected from several high-profile companies.

Key Events to Watch

• Initial jobless claims figures: Thursday at 8:30 AM ET
• Flash PMI surveys: Thursday
• Fed speakers: Neel Kashkari, Lorie Logan, Mary Daly, and Patrick Harker will all make public appearances during the week

Earnings Season Heats Up

Several high-profile companies will report their third-quarter earnings this week, including:

• Tesla (NASDAQ:TSLA)
• IBM (NYSE:IBM)
• Boeing (NYSE:BA)
• United Parcel Service (NYSE:UPS)
• Coca-Cola (NYSE:KO)
• General Motors (NYSE:GM)
• AT&T (NYSE:T)
• Verizon (NYSE:VZ)
• GE Aerospace (NYSE:GE)
• 3M (NYSE:MMM)
• Honeywell (NASDAQ:HON)
• Lockheed Martin (NYSE:LMT)
• American Airlines (NASDAQ:AAL)
• Southwest Airlines (NYSE:LUV)

Stock Picks for the Week Ahead

Based on our analysis, we recommend the following stock picks for the week ahead:

• Buy: GE Aerospace (NYSE:GE)
• Sell: United Parcel Service (NYSE:UPS)

GE Aerospace: A Strong Buy

We expect GE Aerospace to report strong earnings and sales growth, driven by a surge in demand for aftermarket services and new plane engines. The company’s LEAP engine, used in many narrow-body aircraft, is expected to be a major contributor to its growth. With a market cap of $210.7 billion, GE Aerospace has a promising outlook and is well-positioned in the Aerospace & Defense industry.

United Parcel Service: A Weak Outlook

On the other hand, we expect United Parcel Service to report weak earnings and sales growth, due to a combination of rising costs and weakening demand. The company’s heavy reliance on global trade and shipping makes it vulnerable to macroeconomic pressures, which have been impacting revenue. With a market cap of $116.4 billion, UPS has a below-average financial health score and is expected to issue weak guidance for the upcoming quarters.

Conclusion

The week ahead will be marked by several key events that could impact the market. Our stock picks for the week ahead are GE Aerospace and United Parcel Service, based on our analysis of their earnings and sales growth prospects. As always, we recommend investors to do their own research and consider their own risk tolerance before making any investment decisions.