Markets will start Monday on the back of record highs. The S&P 500 (SPY) broke past its 2022 levels, with participants watching the biggest names like Apple (AAPL) and Microsoft (MSFT) first.
Watch PayPal (PYPL) today. The stock is up by 7.2% YTD after its CEO, Alex Chriss, said on CNBC that it will “shock the world.” The CEO cannot disappoint market. PayPal has overpaid its executive staff over the years. It faces severe competition from Apple, whose Apple Pay is a strong alternative to PayPal’s payment exchange system.
Up by 5.3% YTD, Costco (COST) declared its dividend of $1.02 a share on Jan. 18. Strong retail sales data is a bullish confirmation that Costco has strong momentum ahead. In the report, general merchandise sales increased by 1.3% month-over-month. Walmart (WMT) and Target (TGT) should perform well again today.
The weak retail stocks to avoid on Monday include VF Corp. (VFC) and Walgreens (WBA). They are down by 16.4% and 15.8% YTD, respectively. VF is still dealing with the impact of the hack during the holidays. Walgreens posted Q4 results, leading to a sell-off.
Qualcomm (QCOM), which broke out from $140 to $151.96, needs to trade higher today. QCOM stock cannot rely on Citi’s analyst upgrade on Jan. 12. It needs rallies in AMD, Nvidia (NVDA), and Taiwan Semiconductor (TSM) to trade higher today. QCOM stock is up by 5.1% YTD.
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