TLDR
- The S&P 500 and Nasdaq closed last week at record highs, with tech and AI stocks leading the way
- April CPI data drops Tuesday and retail sales figures arrive Thursday, both key for interest rate expectations
- Cisco reports earnings Wednesday, with margin pressure and AI networking demand in focus
- Applied Materials earnings will test whether the semiconductor rally has run ahead of fundamentals
- On Holding and Under Armour both report Tuesday, giving a read on consumer spending on premium apparel
This week, investors are watching five stocks that each connect to a major story playing out in the market right now. From consumer spending to AI infrastructure, the next few days could tell us a lot about where things stand.
The S&P 500 and Nasdaq Composite finished last week at record highs. Tech stocks drove much of that gain, helped by AI demand, stronger chip sales, and falling oil prices. But several data releases and earnings reports this week could shift the picture.
Tuesday brings the April Consumer Price Index report. Thursday brings April retail sales data. Both will influence how investors think about interest rates and the strength of the U.S. consumer.
Here is a closer look at each stock and what to watch.
Walmart
Walmart is one of the most closely watched names this week because it sits right at the center of the consumer spending story.
Retail sales data on Thursday will show whether Americans kept spending in April. Consumers held up better than expected when gas hit $4.50 in March, but there are signs they are getting more cautious. Personal spending has slowed, and some shoppers started buying cars and appliances early to get ahead of possible price increases.
Walmart serves a wide range of shoppers but is especially important for tracking lower- and middle-income households. Strong retail sales would be a positive signal for the stock. Weak sales data would raise more concerns about how those consumers are holding up under inflation pressure.
Cisco Systems
Cisco reports its fiscal third-quarter results after the close on Wednesday.
Investors will be looking at revenue growth, profit margins, and demand for AI networking equipment. Last quarter, Cisco beat estimates on revenue and earnings, but shares fell because margins came under pressure. That makes margins the number to watch most closely this time.
There is also an AI angle here. Companies are spending more on data centers and network infrastructure. Cisco wants to show it can capture some of that demand, just as semiconductor companies have.
Applied Materials
Applied Materials is not as well known as Nvidia or AMD, but it plays a key role in the chip supply chain. Its equipment is used by the manufacturers that build advanced semiconductors.
The company is expected to report earnings this week. Investors will use the results to judge whether demand for chip manufacturing equipment is holding up. Semiconductor stocks have had a strong run driven by AI, memory demand, and data center spending.
A strong report would support that story. Weak guidance could raise questions about whether the rally has moved faster than the underlying business can justify.
On Holding
On Holding reports first-quarter results Tuesday before the market opens.
The Swiss sportswear brand has been growing quickly, and investors will look at sales growth, margins, and inventory. The company also recently named its co-founders as co-CEOs, so the earnings call will be watched for any signals about what that leadership change means going forward.
On gives investors a window into premium athletic apparel. Strong results would suggest higher-income consumers are still spending freely on branded goods.
Under Armour
Under Armour reports fiscal fourth-quarter results Tuesday morning.
The company has been working through a turnaround, focused on cutting costs and rebuilding its brand. Investors will want to see whether those efforts are showing up in the numbers. Clothing stores were one of the weaker retail categories last month, which makes this report more important as a check on apparel demand more broadly.
Sales trends, margins, and inventory levels will be the main things to track.
Final Thoughts
This week is not just about individual companies. It is a check on some of the biggest themes driving the market right now.
Inflation data will test whether price pressures are still easing. Retail sales will show how the consumer is really doing. Cisco and Applied Materials will give a ground-level view of AI and chip demand. On Holding and Under Armour will show whether shoppers are still buying premium clothing.
Each of these reports feeds into the bigger question investors are asking: can the market’s record-setting run hold up when the data comes in?
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
