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1 share to buy, 1 to throw at market open: Tesla, Exxon Mobil

Shares on Wall Street rallied on Friday, with the benchmark posting its biggest one-day gain – hitting 3,911.74, up 116.01 points, or 3.06% – since May 2020, as Investors cut bets on aggressive rate hikes from the Federal Reserve amid signs of slowing economic growth.

Not to be outdone, both the , which gained 823.32 points, reaching 31,500.68 — a gain of 2.68% — and the joined the rally. The NASDAQ Composite ended Friday’s session with an increase of 375.43 points, up 3.34% to hit 11,607.62.

Fed funds futures traders now expect the benchmark rate to rise to around 3.5% by the end of 2022, according to Investing.com, down from previous expectations that it would rise to around 3.5% by the end of 2022. 4%.

The week ahead is set to be another eventful week as markets continue with the Fed’s monetary tightening plans for the second half of the year.

On the economic calendar, the most important data may be Thursday’s personal consumption expenditure data, which includes personal consumption expenditure (PCE), the Fed’s preferred inflation measure.

Meanwhile, on the earnings ledger, there are only a handful of expected corporate earnings, Nike (NYSE:), Micron (NASDAQ:), Walgreens Boots Alliance (NASDAQ:), General Mills (NYSE: :), Constellation Brands (NYSE:), and Bed Bath & Beyond (NASDAQ:).

Regardless of which direction the market is heading, we highlight one stock that is likely to be in demand and one that could drop further below.

Remember, however, that our schedule is just for the coming week.

Stocks to buy: Tesla

Hot off the heels of one of its biggest weekly gains of 2022, shares of Tesla (NASDAQ:) are expected to continue rising in the coming days as the electric vehicle maker prepares to release second-quarter sales numbers.

While the Elon Musk-led company typically reveals the biggest delivery numbers on the second day of a quarter, regardless of the weekend, it’s possible they could arrive on Friday morning due to the holiday holiday. independence day on Monday, July 4.

Analysts expect Tesla delivered 273,000 vehicles in the second quarter, down 12% from the previous quarter, as COVID-related shutdowns in China hampered production at its Shanghai plant.

The pioneering electric vehicle company shipped around 310,000 vehicles in the first quarter, its highest quarterly total on record, despite supply chain issues and a global chip shortage.

Additionally, technical charts look promising as they suggest that Tesla stock looks set to break out of its recent trading range after rallying to key levels.

TSLA stocks, which managed to hold above their May lows amid the recent selloff, are now back above the 10- and 21-day moving averages, which generally signals more short-term gains. term.

TSLA DMA Chart

TSLA jumped 13.3% last week to end Friday’s session at $737.12. At current levels, Tesla has a market capitalization of $763.9 billion, making it the most valuable automaker in the world, bigger than names like Toyota Motor (NYSE:), Volkswagen (OTC:), Daimler (OTC:), General Motors (NYSE: ), Ford Motor (NYSE:) and Honda Motor (NYSE:).

Despite last week’s gains, Tesla shares are down 30% year-to-date and are about 41% below their all-time high of $1,243.49 reached on Nov. 4.

TSLA Daily Chart

Inventory for sale: Exxon Mobil

After recommending shares of Exxon Mobil (NYSE:) several times over the past few months, shares of the US oil and gas giant are set to have a tough week as investors flee the middle.

Crude futures suffered their first straight weekly decline since April, with U.S. prices briefly falling to a six-week low near $101 a barrel on fears rising interest rates could tip the world economy in recession.

WTI oil, which traded above $120 just two weeks ago, posted a modest rebound to close the week at $107 a barrel.

With just days to go until the end of June, oil futures are poised to post their first monthly loss since November as US President Joe Biden steps up efforts to make lower prices and that the Federal Reserve’s rate hike plans threaten to slow down. the economy.

WTI daily chart

After hitting an all-time high of $105.57 on June 8, XOM stock quickly fell to a low of $83.52 on June 23, its lowest level since May 12. Despite a slight rally on Friday, shares of Exxon Mobil ended the week at $86.90, about 18% below its recent all-time high.

At current levels, the Irving, Texas-based energy giant has a market capitalization of approximately $366.1 billion, making it one of the largest oil and gas companies in the world.

Even with its recent sell-off, Exxon shares have climbed 42% year-to-date to easily outpace the broader market.

XOM Daily Chart

Biden previously lashed out at the US oil industry, and Exxon in particular, for exploiting the current supply shortage to boost profits, saying it had “made more money than God” this year.

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