Stocks To Watch After This Week’s Market Rally

The markets saw strong gains after December declines

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Global stock markets have been making record-breaking gains this week after some of the largest public companies have soared after what was the worse December in over 10 years.

The Dow Jones Industrial Average and Nasdaq saw huge gains after Wednesday. The Dow Jones increased by more than 1,080 points (4.9%). This is the biggest single-day gains in the index’s history. The S&P 500 hiked by 4.9% and the Nasdaq ended the day up 5.8%.

Asia Pacific markets also saw gains, the Nikkei Stock Average was up by 3.9% in Tokyo. These gains took the Nikkei out of a bear market which it entered with a 5% drop on Christmas day. The ASX200 market in Sydney ended the trading period up 1.9%.

Despite the worldwide gains that stock markets have felt, the challenges that the markets are experiencing have not faltered according to economists. Trade war implications and the global economy are still taking their tolls on stock market’s. Worries regarding the US government shutdown and U.S/China trade talks are still apparent. Investors understand the impact that these factors have on stock markets, although “they aren’t paying attention” – Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

To finalize, the gains that the market is currently experiencing is subject to chance at any time. The Dow Jones is extremely volatile, eight of its last nine trading sessions has either lost or gained 250+ points. This volatility extends pasts the Dow Jones. Stocks started this week with the worst-ever Christmas Eve on record, with the same stocks rallying on Wednesday by 1,086 points.


Stocks To Watch

The American economy is strong, with economists expecting slightly slower growth next year. For this reason, many analysis’s believe that U.S equities are currently overprices. So with the recent volatility, what are the top stocks to watch?

Paypal (NASDAQ: PYPL)

Despite recent NASDAQ fluctuations, Paypal stock has held its place. Paypal stock is down almost 5% month over month, which is considerably less than NASDAQ average which is down 12.5%. As a benchmark, Visa stock is down 10.5%. Payment processing giant Square is also down, almost 24%. Since January, Paypal stock has make gains of 4%.

Due to the resilience that Paypal shares has shown when compared to its competition, it is one of our stocks to watch.


Amazon (NASDAQ: AMZN)

Amazon posted record breaking holiday season sales on Wednesday, which caused Amazon stock price to make gains of as much as 3.61%. Amazon said it shipped over one billion items to Prime members in the U.S alone. Over ten million people signed up to Prime free trials during the holiday period.

Long-term, we expect Amazon stock to make significant gains around holiday times and seasonal shopping events like Black Friday. With December being a weak month for Amazon stock, investors have an entry point into the company. Amazon Web Services is what makes Amazon stock so attractive for most investors. AMZN is one of the City Of Hype stocks to watch.