U.S. stocks closed sharply higher on Friday after a generally upbeat jobs report eased worries about the economy. The closed above 6,000 for the first time since February 21, fueled by gains in technology shares.
The benchmark index, along with the other two major indices, also posted notable gains for the week. The S&P 500 jumped 1.5%, the climbed 1.2%, while the tech-heavy advanced 2.2%.
Source: Investing.com
More volatility could be in store this week as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings amid President Donald Trump’s trade war.
Treasury Secretary Scott Bessent and two other top Trump officials will meet Monday with Chinese counterparts in London, Trump said Friday. That follows Trump’s call with President Xi Jinping on Thursday.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for May, which could spark further turmoil if it comes in higher than expectations. The CPI data will be accompanied by the release of the latest figures on producer prices, which will help fill out the inflation picture.
Meanwhile, there will be no Fed speakers on the agenda as the central bank goes into its pre-FOMC blackout mode ahead of the June 17-18 policy meeting.
Source: Investing.com
And while the earnings season is almost over, a few notable companies will report in the coming week, including tech giants Oracle (NYSE:) and Adobe (NASDAQ:), meme stock GameStop (NYSE:), and pet e-commerce company Chewy (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, June 9 – Friday, June 13.
Stock to Buy: Datadog
Datadog (NASDAQ:) stands out as a top buy this week, with its flagship ’Dash 2025’ event set to be a major catalyst for the stock. The two-day conference, starting Monday, is notorious for product reveals and strategic updates.
DDOG shares have a history of rallying during the company’s annual Dash event. Last year, the stock surged 10.3% during the week of the conference, driven by positive announcements and analyst upgrades. This established pattern suggests potential for similar price action this year.
Shares ended Friday’s session at $122.16, valuing the security-software maker at $42.2 billion.
Source: Investing.com
Chief Executive Officer Olivier Pomel, Chief Product Officer Yanbing Li, and other leadership team members are expected to introduce new AI-driven solutions for observability and cybersecurity, enhancing Datadog’s ability to detect and resolve issues in real time.
The event is also likely to showcase advancements in cloud monitoring, particularly for hybrid and multi-cloud environments, as businesses increasingly rely on complex cloud infrastructures.
New strategic partnerships that can extend the cloud security company’s reach and improve platform capabilities might be revealed as well.
Now in its eighth year, Datadog shares have demonstrated strong performance during the week of the Dash event. The conference often attracts upgrades from Wall Street analysts, as new product launches and features demonstrate the company’s innovation and growth potential.
Source: InvestingPro
As InvestingPro points out, Datadog has a ‘GOOD’ Financial Health Score of 2.9/5.0, supported by its upbeat profitability outlook and strong sales growth prospects thanks to the strong adoption of its cloud monitoring solutions.
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Stock to Sell: Apple
Conversely, Apple (NASDAQ:) is gearing up for its annual Worldwide Developers Conference (WWDC) 2025 starting Monday. The five-day event will kick off with a keynote address by CEO Tim Cook that is set to take place at 1:00PM ET/10:00AM PT.
With Apple’s AI strategy lagging behind competitors like Google (NASDAQ:) and Microsoft (NASDAQ:), the event may fail to inspire confidence among investors.
AAPL stock closed at $203.92 on Friday, earning the tech giant a market cap of $3.05 trillion. Shares are down nearly 18% year-to-date in 2025, underperforming the S&P 500, due to tariff threats impacting its China-heavy supply chain and disappointment over its slow AI rollout.
Source: Investing.com
While WWDC usually piques investor interest, this year’s outlook is more subdued. Although AI advancements are anticipated to be highlighted, Apple’s perceived slow pace in AI development has led to investor disappointment, leaving limited room for error.
WWDC will also showcase Apple’s software innovations across its ecosystem, including updates to iOS, iPadOS, macOS, watchOS, tvOS, and visionOS. However, hardware announcements, if any, are likely limited to a new Mac Pro with an M4 chip.
Source: InvestingPro
It should be noted that Apple’s stock is overvalued as per the AI-backed quantitative models in InvestingPro, which point to potential downside of 18.8% from Friday’s closing price.
Such a move would take shares closer to their ‘Fair Value’ price of $165.49.
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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.
