Stock markets will watch for a follow-through in buying momentum in the technology sector. Companies to look at include Dell Technologies (DELL). Shares closed at an all-time high last week.
Dell benefited from Lenovo (LNVGY) posting strong quarterly results. PC sales grew, despite the RAM inflation. The firm also benefited from an increase in demand for AI-related server equipment. Dell will report results this week.
Sandisk (SNDK) reversed over a week of selling pressure. The storage firm, along with WD (WDC) and Seagate (STX), also bounced back.
On the earnings calendar, watch Zscaler (ZS). Its stock bottomed in April at around $120. It closed at $182.37. The cybersecurity firm attracted a 6.33% short interest. On May 21, it announced that it would buy Symmetry Systems. That would increase its AI capabilities.
Best Buy (BBY), whose shares are in a yearlong downtrend, will reveal quarterly sales this week. Expect disappointment, as consumers lower their spending on expensive electronics.
Costco (COST) risks falling as Walmart (WMT) did. The stock trades at a 53.5x P/E. Shares peaked at nearly $1,100, then pulled back to $1,028.24 on May 22. Costco might announce an international store expansion. That would lower its reliance on the U.S. markets.
