The News

 CPI inflation, retail sales, producer prices, and more earnings will be in focus this week.

• Shopify stands out as a buy, particularly with the holiday season around the corner.

• Occidental Petroleum’s challenging landscape makes it one to approach with caution.!

U.S. stocks closed higher on Friday to cap off their best week of the year, as the Dow and S&P 500 surged to new records after Donald Trump's decisive election victory.

Investors are betting that a Trump administration will bring lighter regulation and tax cuts that could boost the U.S. economy.

For the week, the blue-chip Dow Jones Industrial Average climbed 4.6%, the benchmark S&P 500 gained 4.7%, and the tech-heavy Nasdaq Composite popped 5.7%.

Source: Investing.com

The week ahead is expected to be an eventful one as investors assess the outlook for the economy, inflation, interest rates and corporate earnings.

On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for October, which is forecast to show headline annual CPI rising 2.4% year-over-year.

Other noteworthy economic reports include U.S. retail sales data, as well as a report on producer prices, will help fill out the inflation picture.

Source: Investing.com

That will be accompanied by a heavy slate of Fed speakers, including Chairman Jerome Powell on Thursday.

Elsewhere, the earnings season continues, with the list of notable names due to report including Walt Disney (NYSE:DIS), Home Depot (NYSE:HD), Cisco (NASDAQ:CSCO), Applied Materials (NASDAQ:AMAT), Shopify (NYSE:SHOP), Spotify (NYSE:SPOT), and Alibaba (NYSE:BABA).

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 just for the week ahead, Monday, November 11 - Friday, November 15.

Stock To Buy: Shopify

Shopify stands out as a top buy this week, as the e-commerce software leader is anticipated to deliver another quarter of strong top-line growth and provide an upbeat outlook thanks to robust growth across key metrics.

Shopify’s report is set for release Tuesday at 7:00 AM ET. Market participants expect a sizable swing in SHOP stock after the print drops, according to the options market, with a possible implied move of approximately 14% in either direction. Shares gapped up 26% after its last earnings report in August.

Source: InvestingPro

Analysts have raised profit forecasts 33 times in recent weeks, as per an InvestingPro survey, highlighting confidence in Shopify’s continued expansion.

Wall Street expects adjusted EPS to rise 14% to $0.27, while revenue is set to increase 23% to over $2.1 billion, driven by positive merchant growth and consistent demand for Shopify’s suite of software and payment tools.

Additionally, Shopify has a proven seasonal advantage: its stock tends to gain momentum leading up to Black Friday and Cyber Monday (NASDAQ:MNDY) (BFCM). Historically, shares have risen about 7% in the two weeks prior to BFCM from 2016 to 2023, showing resilience as demand spikes ahead of the holiday shopping season.

As more merchants capitalize on e-commerce for the holiday rush, Shopify remains well-positioned for upside.

SHOP stock ended at $87.12 on Friday, its highest closing price since February 12. Shares have gained 11.8% year-to-date. At current levels, the Ottawa, Canada-based e-commerce specialist has a market cap of $112.5 billion.

Source: Investing.com

As InvestingPro points out, Shopify sports a near perfect ‘Financial Health’ score of 4.0 out of 5.0 thanks to its favorable positioning in the software application industry, which has allowed it to leverage a resilient business model and strong profit growth.

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Stock to Sell: Occidental Petroleum

In contrast, Occidental Petroleum (NYSE:OXY) is facing a more challenging outlook, making it a strong sell this week due to an unpredictable energy market and fluctuating oil prices.

The company is scheduled to release its third-quarter earnings report after the market closes at 4:15PM ET on Tuesday. According to the options market, traders are pricing in a swing of around 6% in either direction for OXY stock following the print.

The energy sector’s current uncertainties make Occidental’s path to growth more complicated, with the company navigating complex conditions around global demand and strategic shifts within the industry.

Source: InvestingPro

The oil and gas producer’s earnings outlook has dimmed, with 16 of 17 analysts reducing their EPS forecasts in recent weeks, reflecting a challenging market.

Earnings are expected to decline 36.4% year-over-year to $0.75 per share on revenue of $7.1 billion, down 4% annually. This decrease comes amid volatile oil prices and ongoing debates around the global energy demand outlook.

Although Occidental has made moves to enhance its position within the sector, including recent strategic initiatives, near-term pressures continue to weigh on the stock. Consequently, the risk of underperformance appears higher as the company battles broader market uncertainties and industry-specific hurdles.

OXY stock closed at $50.53 on Friday, not far from a recent 52-week low of $49.51 touched on November 1. Shares are down 15.4% in 2024. At current valuations, the Houston, Texas-based company has a market cap of $47 billion.

Source: Investing.com

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 Following three consecutive losses featuring mounting problems on offense, the Chicago Bears have made a change.

 President-elect Donald Trump is expected to select South Dakota Gov. Kristi Noem to fill the role of Homeland Security secretary, multiple sources confirm to Fox News Digital.

Noem, who was thought to be a potential running mate on the Trump ticket earlier in the year, has served as governor of the Mount Rushmore State since 2019.

President-elect Donald Trump is expected to select South Dakota Gov. Kristi Noem to fill the role of Homeland Security secretary, according to reports on Tuesday. (KAMIL KRZACZYNSKI/AFP via Getty Images)

The Department of Homeland Security oversees U.S. Customs and Border Protection, Immigration and Customs Enforcement, U.S. Secret Service and the Federal Emergency Management Agency (FEMA).

If selected, Noem would work with Tom Homan, who was announced as Trump's "border czar" on Sunday, and Stephen Miller, who was announced as the White House deputy of staff for policy on Monday.

Noem, along with Homan and Miller, has long been a supporter of Trump's stiff stance on immigration and border security. 

As governor, Noem has dispatched troops from the South Dakota National Guard multiple times to serve along the U.S. southern border with Mexico.

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Fox News also confirmed on Monday night that the president-elect is expected to choose Republican Sen. Marco Rubio of Florida as Secretary of State.

An official announcement from Trump's transition team on either Rubio or Noem had not been made as of Tuesday morning.

Earlier in the year, Noem was thought to be one of Trump's top contenders for vice president. (KAMIL KRZACZYNSKI/AFP via Getty Images)

Noem, who served eight years as South Dakota's at-large congresswoman before winning election as governor in 2018, has long been a strong Trump supporter and ally.

And the governor, who speaks regularly with Trump according to those in her political orbit, was a high-profile surrogate on behalf of the former president on the campaign trail this year.

Video

In an interview last week on Fox News' "Your World," Noem told host Neil Cavuto that Trump "has told me several times now, a couple of times just since Election Day, about how focused he is on doing big things…he knows he only has four years and he wants to hit the ground running. And he said anybody that I want around me needs to be thinking big, too."

Noem, who was convincingly re-elected in 2022, is term-limited and has two years left in office as South Dakota governor.

The news of Trump's selection of Noem to serve at Homeland Security was first reported by CNN.