The stock market ended higher on Friday, with the major averages registering sharp gains for the week driven by hopes for a de-escalation of the U.S.- China trade war.
The Dow Jones Industrial Average rose 2.5% for the week, the S&P 500 jumped 4.6%, while the tech-heavy Nasdaq Composite soared 6.7%.
Source: Investing.com
More volatility could be in store this week as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings amid President Donald Trump’s trade war.
Wall Street’s first quarter earnings season hits full swing, with four of the massive ‘Magnificent Seven’ tech stocks set to report their latest results. Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) report on Wednesday night, while Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) are due late Thursday.
Other high-profile companies on the agenda include Qualcomm (NASDAQ:QCOM), ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), Eli Lilly (NYSE:LLY), Pfizer (NYSE:PFE), Coca-Cola (NYSE:KO), McDonald’s (NYSE:MCD), Starbucks (NASDAQ:SBUX), United Parcel Service (NYSE:UPS), Caterpillar (NYSE:CAT), Robinhood (NASDAQ:HOOD), PayPal (NASDAQ:PYPL), Visa (NYSE:V), and Mastercard (NYSE:MA).
Meanwhile, most important on the economic calendar will be Friday’s U.S. employment report, which is forecast to show the economy added 129,000 positions in April. The unemployment rate is seen holding steady at 4.2%.
Source: Investing.com
Besides the monthly jobs report, there is also important first-quarter GDP data, as well as the core PCE price index, which is the Fed’s favorite inflation gauge.
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, April 28 – Friday, May 2.
Meta Platforms looks positioned for a strong showing when it reports Q1 earnings this Wednesday after the close at 4:40PM ET. CEO Mark Zuckerberg and CFO Susan Li are scheduled to discuss the results during a 5:00PM ET earnings call.
The improving digital advertising market, coupled with Meta’s ongoing investments in AI and its massive user base across platforms like Facebook, Instagram, Threads, Reels, and WhatsApp, suggest the social media giant may deliver results that exceed tempered expectations.
Market participants foresee a sizable swing in META stock after the print drops, with a possible implied move of 8.3% in either direction.
Source: InvestingPro
While Meta’s growth has decelerated in recent quarters, analysts project a solid 13% year-over-year revenue increase to $41.3 billion, accompanied by an 11% rise in adjusted earnings per share to $5.20.
Despite broader market volatility and concerns over reduced ad spend from Chinese e-commerce firms due to escalating U.S.-China trade tensions, Meta’s diversified revenue streams and expanding global user base provide a buffer.
Moreover, Meta’s strategic investments in artificial intelligence, including new state-of-the-art data centers, position it well for long-term growth.
It is also worth noting that Meta will hold its initial ‘LlamaCon’ event on Tuesday, at which it is expected to highlight open-source advancements through its Llama family of generative AI models.
Source: Investing.com
META stock ended Friday’s session at $547.27, about 26% below its all-time high reached in mid-February. At current levels, the Menlo Park, California-based tech behemoth has a market cap of $1.38 trillion, making it the sixth most valuable company on the U.S. stock exchange.
As InvestingPro points out, Meta boasts a “GREAT” Financial Health Overall Score of 3.22, with particularly strong metrics in Profit (4.49) and Cash Flow (3.74). Analysts are overwhelmingly bullish on Meta, with a Strong Buy consensus recommendation (1.48) and a mean price target of $713.63, suggesting upside potential of 30.4% from current levels.
On the opposite end of the spectrum, Pfizer, the pharmaceutical giant, is bracing for the release of its Q1 financial results on Tuesday at 6:45AM ET. The ‘Big Pharma’ company is grappling with several headwinds, including declining demand for its COVID-19 products and increased competition in its non-COVID portfolio.
Additionally, Pfizer’s recent decision to abandon another obesity drug development program underscores the challenges it faces in replenishing its product pipeline and sustaining long-term growth.
Market participants expect a possible implied move of 4% in either direction in PFE stock after the print drops.
Source: InvestingPro
Analysts project a significant drop in earnings, with EPS expected to fall over 18% to $0.69 per share, and revenue anticipated to decrease by approximately 6% to $14.1 billion.
This pessimistic outlook is largely due to the expiration of the Diovan patent, a reduction in Rasilez/Titrandet demand, and increased competition in the ALTITUDE clinical study.
With limited near-term catalysts to offset these pressures, Pfizer’s stock could face further selling pressure post-earnings. While its dividend yield remains attractive at current price levels, Pfizer’s near-term growth prospects have dimmed considerably.
Source: Investing.com
PFE stock –which fell below $21 for the first time since July 2012 earlier this month– closed at $22.92 on Friday. At current valuations, Pfizer has a market cap of $130 billion. Shares, which are trading below their key moving averages, are down 13.6% in 2025.
As per InvestingPro, Pfizer maintains a “GOOD” Financial Health Overall Score of 2.86, with its strongest component being Profit (3.71), followed by Cash Flow (2.80) and Price Momentum (2.77). Growth is its weakest area at 2.03.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
