The stock market ended higher in a shortened session on Thursday, with the and both closing at fresh record highs after an upbeat U.S. jobs report helped ease concerns about the economy. Wall Street was closed on Friday for the Independence Day holiday.
Source: Investing.com
All three major U.S. averages closed out the week in positive territory. The 30-stock rallied more than 1,000 points, or 2.3%, the benchmark S&P 500 jumped 1.7%, while the tech-heavy Nasdaq rose 1.6%.
The week ahead is expected to be a busy one as investors assess the outlook for the economy, inflation, interest rates and corporate earnings with President Donald Trump’s July 9 tariff deadline fast approaching.
Most important on the economic calendar will be the minutes of the Federal Reserve’s June FOMC meeting, which could give some insight into the future path of interest rates.
Source: Investing.com
Meanwhile, notable companies due to report earnings this week include Delta Air Lines (NYSE:), Conagra Brands (NYSE:), and Levi Strauss (NYSE:).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is justfor the week ahead, Monday, July 7 – Friday, July 11.
Stock to Buy: Amazon
Amazon (NASDAQ:) is poised for a strong week as it gears up for its 11th annual Prime Day, running from Tuesday to Friday. This four-day shopping extravaganza, exclusive to Amazon Prime members, will feature discounts across more than 35 categories, including electronics, home goods, beauty, and apparel.
AMZN ended Friday’s session at $223.41, hovering near its 52-week high of $242.52, with a three-month total return of 30.6%. Technically, Amazon is on a roll—virtually every short- and long-term indicator signals “strong buy,” with the RSI at 64.37 and momentum backed by consistently bullish moving averages across all timeframes.
Source: Investing.com
Amazon’s Prime Day event is expected to be a major catalyst for the e-commerce giant. Analysts project the company could generate $21 billion in sales during the event, marking a 60% increase from last year’s estimated haul.
Historically, AMZN shares tend to rally in the week of its annual Prime Day, as excitement and traffic on the platform fuel both sales and sentiment. Prime Day has become a “Black Friday in July,” spurring not only Amazon’s top line but reinforcing its dominance in e-commerce and cloud infrastructure.
It is worth noting that Amazon boasts a robust 3.09 InvestingPro Financial Health score, earning a ‘GREAT’ label that reflects its leading market position, resilient cash flow, and strong analyst confidence heading into Prime Day.
Source: InvestingPro
Furthermore, JPMorgan recently flagged Amazon as its “Best Idea,” citing Prime’s growing penetration—especially in untapped international markets—and the potential for further pricing power.
Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Subscribe now for up to 50% off and position your portfolio one step ahead of everyone else!
Stock to Sell: Tesla
In stark contrast, Tesla (NASDAQ:) is bracing for a challenging week, positioning it as a stock to sell amid fresh controversy surrounding CEO Elon Musk’s latest political endeavors, just as his feud with President Trump reaches new heights.
Musk’s ongoing political distractions and potential policy risks have already contributed to severe volatility in Tesla’s stock.
TSLA soared after Trump’s November reelection, hitting a high of more than $488 in December, before losing more than half its value by April and closing at $315.35 on Friday—a see-saw ride that underscores just how sensitive Tesla’s valuation is to political and leadership risk.
Source: Investing.com
Musk announced the formation of a new U.S. political party, the “America Party,” on his X social media platform on Saturday, just a day after Trump signed his “big, beautiful” tax-cut and spending bill into law.
The tech mogul claims the newly signed bill will increase the federal deficit to $2.5 trillion and “bankrupt the country.” Further complicating the situation, Musk has threatened to spend money to unseat lawmakers who supported the bill.
Investors have consistently expressed concern that Musk’s ongoing spat with the president could severely hurt the EV maker’s prospects, with Trump recently threatening to cut off the billions of dollars in subsidies that Musk’s companies, including Tesla, receive from the federal government.
In addition, Musk’s renewed focus on politics raises concerns about his commitment to Tesla’s core businesses, undermining faith in the company’s leadership.
Source: InvestingPro
The EV pioneer holds a 2.45 Financial Health score and a ‘FAIR’ label. It should be noted that Tesla’s stock is overvalued as per the AI-backed quantitative models in InvestingPro, which point to a potential downside of 12.2% from Friday’s closing price. Such a move would take shares closer to their ‘Fair Value’ price of $276.84.
Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you’re a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop.
Subscribe now for up to 50% off and instantly unlock access to several market-beating features, including:
ProPicks AI: AI-selected stock winners with proven track record.
InvestingPro Fair Value: Instantly find out if a stock is underpriced or overvalued.
Advanced Stock Screener: Search for the best stocks based on hundreds of selected filters, and criteria.
Top Ideas: See what stocks billionaire investors such as Warren Buffett, Michael Burry, and George Soros are buying.
Disclosure: At the time of writing, I am long on the S&P 500, and the via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
