Last week, stock markets gained ground, ahead of the inauguration. After yields rose for several weeks, the 10-year treasury bond yield (IEF) finally pulled back. It traded at a yield of around 4.6% last Friday. Markets have a good chance of continuing the weekly rally.
Housing starts increased. PulteGroup (PHM) stock reacted by adding 8.75% last week while D.R. Horton (DHR) added 8.15%.
In the technology sector, Apple (AAPL) added 0.75% to stop its downtrend. AAPL stock peaked at $260.10 on Dec. 26, 2024. Unfortunately, analysts are skeptical that Apple has an artificial intelligence solution that appeals to consumers. Apple Intelligence may fail to lift iPhone sales. Industry experts are forecasting iPhone 16 sales to fall by 5% Y/Y.
Micron Technology (MU) gained 6.45%, completing a multiple-bottom bounce at around $85. While the stock closed at $105.75, the rally may stall at around $110. Nvidia (NVDA) closed up by 1.32%. Whenever bullish sentiment strengthens, investors bid tech stocks higher.
In the earnings report calendar this week, watch Netflix (NFLX), Johnson & Johnson (JNJ), and American Express (AXP). JNJ stock lost 10.5% in the last quarter and needs to post strong earnings. Conversely, Netflix (NFLX) shares are on a yearlong uptrend. The streaming service must post strong subscription growth to justify the 48.6 times price-to-earnings ratio.
