From Yahoo Finance: 2025-05-18 12:38:00

This week, Moody’s U.S. credit downgrade, housing data, and retailer earnings will be in focus. Snowflake is a buy with strong earnings and upbeat guidance. Target faces shrinking revenue, declining profit, and a weak outlook, making it a stock to sell. The stock market ended higher last week with sharp gains driven by U.S.-China trade war de-escalation and AI spending optimism.

The Dow Jones rose 3.4%, the S&P 500 climbed 5.3%, and the Nasdaq surged 7.2%, wiping out year-to-date losses. Moody’s downgraded the U.S. credit rating to ‘Aa1’ from ‘AAA’, citing rising debt. Flash PMI readings and housing updates will be in focus. Interest rate futures show a 90% chance of unchanged rates at the June Fed meeting.

Snowflake, a data analytics provider, is expected to report strong earnings with analysts revising profit estimates upward. For Q1, adjusted profit is projected to rise 51% to $0.21/share, revenue to increase 22% to $1 billion. Snowflake’s growth trajectory shows its ability to expand despite tech spending concerns.

Snowflake has evolved into a comprehensive cloud data platform with strong AI and big data trends. Analysts note positive adoption of its Cortex AI suite and Snowpark developer framework. The company is expected to deliver strong sales guidance, benefiting from AI adoption rates and strategic growth initiatives.

On the other hand, Target is facing challenges as it prepares to release Q1 earnings. Analysts expect earnings to fall 19% to $1.69/share, revenue to decline 1% to $24.4 billion. Headwinds include slowing store traffic, reduced spending, and potential margin pressure from tariffs impacting the supply chain.

Target’s stock price is down 27.1% in 2025, closing at $98.58. Analysts have reduced profit estimates, signaling concern. Target faces challenges in maintaining profitability and top-line momentum. CEO Brian Cornell may provide cautious guidance due to a competitive landscape and potential impact from tariffs.

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Read more at Yahoo Finance: 1 Stock to Buy, 1 Stock to Sell This Week: Snowflake, Target