Daily Stock Market Report - July 11, 2023

Top Stock Market News

1. Tech Sector Leads Risk-On Rally Ahead of Inflation Data

European futures and Asian stocks gained on Tuesday, with the technology sector leading the charge as investors positioned themselves ahead of key US inflation data that could signal easing price pressures. The Euro Stoxx 50 contract advanced 0.2%, while major Asian indices closed higher, buoyed by a rally in tech stocks. Investors are closely monitoring the upcoming US Consumer Price Index (CPI) report, which could influence the Federal Reserve's next move on interest rates.

2. Dow Leads U.S. Indexes Higher Ahead of Inflation Data

Major U.S. stock indexes finished Tuesday's session higher, with the Dow Jones Industrial Average leading the charge. Investors are looking ahead to the release of the highly anticipated inflation data on Wednesday, which will inform the Federal Reserve's monetary policy decisions. Traders are hopeful that the data will show a moderation in price pressures, potentially paving the way for a pause in interest rate hikes.

3. Tech Stocks Tumble as Earnings Season Kicks Off

U.S. stocks fell sharply on Monday, with technology companies bearing the brunt of the selloff as investors braced for the start of the second-quarter earnings season. Concerns over slowing economic growth and the impact of higher interest rates on corporate profits weighed on market sentiment. The tech-heavy Nasdaq Composite suffered significant losses, underscoring investors' caution towards the sector.

Top Stocks to Watch

1. Kirin Holdings Company, Limited (KNBWY)

Kirin Holdings Company, Limited (KNBWY) is a Japanese company operating in the food and beverages, pharmaceuticals, and biotechnology industries. With a strong buy rank and impressive growth characteristics, KNBWY presents an attractive opportunity for investors seeking exposure to the consumer staples and healthcare sectors.

2. Jackson Financial Inc. (JXN)

Jackson Financial Inc. (JXN), an annuity provider, carries a Zacks Rank #1 and boasts strong value characteristics. As investors seek defensive positions in the face of market volatility, JXN's attractive valuation and stable business model make it a compelling consideration for value-oriented investors.

3. Boeing (BA)

Boeing (BA), one of the largest U.S. defense contractors and a global supplier of large commercial aircraft, is a stock worth watching. Despite facing challenges in recent years, the company's diversified business model and potential for recovery in the aviation industry make it an intriguing investment opportunity for those with a long-term perspective.

4. Kraft Heinz (KHC)

Kraft Heinz (KHC), one of the world's largest consumer packaged food and beverage companies, is another stock on the radar. With its well-known brand portfolio and defensive nature, KHC could appeal to investors seeking stability amidst market uncertainty.

5. Occidental Petroleum (OXY)

As one of the largest U.S. oil and gas exploration and production companies, Occidental Petroleum (OXY) is a stock to watch, particularly for investors bullish on the energy sector. The company's strong position in the energy market and potential upside from rising commodity prices make it an attractive investment option.

Stock Market Expected Movement

Heading into the latter half of the week, market participants are eagerly awaiting the release of the US Consumer Price Index (CPI) data on Wednesday. This key inflation report is expected to heavily influence the Federal Reserve's monetary policy stance and could potentially determine the market's direction in the coming days.

If the CPI data shows a continued moderation in price pressures, it could fuel hopes of a pause in interest rate hikes by the Fed, potentially boosting market sentiment and driving further gains across equity markets. Conversely, a higher-than-expected inflation reading could reignite concerns about aggressive monetary tightening, potentially triggering a selloff.

Investors will also closely monitor corporate earnings reports, particularly from technology companies, as they kick off the second-quarter earnings season. Strong earnings and positive guidance could provide a much-needed boost to the tech sector, which has been grappling with concerns over slowing growth and rising interest rates.

Overall, the stock market is poised for potential volatility as investors digest the incoming inflation data and corporate earnings reports. Traders should remain vigilant and prepared to adapt their strategies based on the market's reaction to these key events.