1 Stock to Buy, 1 Stock to Sell This Week: Palantir, Delta Air Lines

U.S. stocks finished higher on Friday to notch another winning week as the and both ended at new records after the latest jobs report boosted hopes of an autumn interest rate cut from the Federal Reserve.

For the week, the benchmark S&P 500 and tech-heavy Nasdaq rose 2% and 3.5% respectively, while the blue-chip added 0.7%.

Source: Investing.com

The week ahead will feature key Congressional testimony from Fed Chairman Jerome Powell as investors look for more clues on the outlook for the economy, inflation, and interest rates.

Traders are currently pricing in a roughly 78% chance the central bank will lower rates by 25 basis points at its September meeting, according to the Investing.com .

Meanwhile, on the economic calendar, most important will be Thursday’s U.S. consumer price inflation report for June, which is forecast to show annual CPI rising 3.1%, slowing from the 3.3% increase recorded in May.

The CPI data will be accompanied by the release of the latest figures on producer prices, which will help fill out the inflation picture.

Source: Investing.com

Elsewhere, a new earnings season is set to get underway with a slew of big bank earnings reports. Major lenders JPMorgan Chase (NYSE:), Wells Fargo (NYSE:), and Citigroup (NYSE:) are all due to deliver quarterly results on Friday.

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, July 8 – Friday, July 12.

Stock to Buy: Palantir

I expect Palantir (NYSE:) to continue its upward trend as shares of the application software company look primed for a significant breakout this week due to its bullish technical chart setup.

As seen below, the stock’s technical chart shows a bullish correction that positions PLTR for a big move above $30.

Source: Investing.com

Currently trading at $27.23, just below its 2024 peak of $27.50 reached on March 7, PLTR is readying for a breakout from a substantial base that formed from late 2021 into early 2024. This big base remains firmly in place above $22, indicating strong support and an upside potential to pattern counts at $27.50-$29.30 and $30.30-$33.50.

Shares are up 58.6% year-to-date amid excitement over the big-data firm’s leading role in artificial intelligence. At current levels, the Denver, Colorado-based software maker has a market cap of $60.6 billion.

Palantir has been at the forefront of AI innovation, leveraging its cutting-edge data analytics platforms, Palantir Foundry and Palantir Gotham. With growing enterprise demand for AI-driven data analytics, Palantir is well-positioned to capitalize on this trend.

Additionally, investors should also note that Palantir is set to report its Q2 earnings in early August. Given the company’s recent performance and upbeat growth trajectory, this earnings report could serve as another positive catalyst for the stock.

Source: InvestingPro

Analysts have…