• Trump’s commerce warfare, U.S. jobs report, and final batch of This autumn earnings shall be in focus this week.
• Costco’s earnings report is seen as a possible catalyst for development, making it a inventory to observe for bullish buyers.
• Foot Locker is bracing for a disappointing replace because of sluggish demand for discretionary attire, making it a inventory to keep away from.
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U.S. shares closed larger on Friday to wrap up a unstable week and a dropping month for the key averages amid a unfavorable combine of stories associated to tariffs, inflation and the economic system.
The declined roughly 1% for the week and 1.4% in February. The tech-heavy misplaced about 4% for all of February, its worst month-to-month decline since April 2024. In the meantime, the blue-chip managed to outperform, rising about 1% throughout the week. Month-to-date, nonetheless, the 30-stock index dropped 1.6%.
Supply: Investing.com
The week forward is predicted to be one other eventful one as buyers react to President Donald Trump’s aggressive tariffs. Trump’s 25% tariffs in opposition to Canada and Mexico will begin on Tuesday, together with an extra 10% tariff hike on Chinese language items.
Most vital on the calendar shall be Friday’s U.S. employment report for February, which is forecast to indicate the economic system added 156,000 positions. The unemployment charge is seen holding regular at 4.0%. That shall be accompanied by a heavy slate of Fed audio system, together with Chairman Jerome Powell.
Supply: Investing.com
And whereas the earnings season is drawing to an in depth, various noteworthy stories are due, together with Broadcom (NASDAQ:), CrowdStrike (NASDAQ:), Costco (NASDAQ:), Goal (NYSE:), Finest Purchase (NYSE:), Macy’s (NYSE:), Kroger (NYSE:), and JD.com (NASDAQ:).
No matter which route the market goes, beneath I spotlight one inventory more likely to be in demand and one other which may see recent draw back. Bear in mind although, my timeframe is simply for the week forward, Monday, March 3 – Friday, March 7.
Inventory to Purchase: Costco
Costco, the Issaquah, Washington-based warehouse retailer, is poised to ship its fiscal second-quarter earnings after the U.S. market closes on Thursday at 4:15PM ET. Based on the choices market, merchants are pricing in a swing of 4.4% in both route for COST inventory following the print.
Current optimism has been evident, with revenue estimates revised upward 15 occasions within the weeks main as much as the report—in comparison with solely 5 downward revisions, in response to InvestingPro. 
Supply: InvestingPro
Regardless of the financial headwinds affecting retailers, Costco appears set to beat expectations because the membership-based warehouse membership advantages from a shift towards frugal shopper spending amid the present financial backdrop.
Analysts challenge that Costco will earn $4.08 per share, representing a 4.1% enhance from final 12 months’s EPS of $3.92. Moreover, income is forecast to climb 9.9% year-over-year to $63 billion, pushed by sturdy grocery gross sales and favorable membership developments.
These encouraging alerts recommend that Costco’s disciplined enterprise mannequin, loyal buyer base, and strong membership program proceed to generate resilience and development even in unsure occasions.
Recognized for its big range of high-demand merchandise—from groceries and family necessities to electronics and attire—Costco has managed to carve out a distinct segment for itself by catering to value-conscious customers.
Supply: Investing.com
COST inventory ended Friday’s session at $1,048.61, slightly below a document excessive of $1,078 reached on February 13. With a market cap of $465 billion, Costco is the world’s second most precious brick-and-mortar retailer – behind Walmart (NYSE:). Costco has stood other than different retailers this 12 months, with shares rising 14.4% thus far in 2025.
InvestingPro’s AI-powered quantitative mannequin charges Costco with a ‘GOOD’ Monetary Well being Rating of two.94, indicating strong operational stability and monetary administration.
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Inventory to Promote: Foot Locker
In stark distinction, Foot Locker (NYSE:) is ready for a difficult week forward. The New York-based sportswear retailer, which focuses on sneakers and athletic attire, is predicted to report its This autumn monetary outcomes forward of the market opening on Wednesday at 6:45 AM ET.
Market contributors anticipate a large swing in FL shares following the print, with the choices market pointing to a doable implied transfer of 16.2% in both route. Analyst sentiment is overwhelmingly bearish with 16 downward revisions and no upward changes within the weeks previous the report.
Supply: InvestingPro
The outlook for Foot Locker seems dim because it grapples with a tricky financial setting characterised by excessive inflation and shrinking disposable earnings, resulting in slower shopper demand for discretionary objects.
The corporate is forecast to earn $0.72 per share, whereas income is predicted to say no by 2.5% year-over-year to $2.32 billion. These figures replicate the mounting pressures on Foot Locker, as customers tighten their belts and competitors intensifies.
Wanting forward, the retailer’s administration is predicted to disclose tender revenue and income steering for the present quarter amid slowing gross sales and compressing margins.
Ongoing shifts in shopper conduct in the direction of on-line buying and direct-to-consumer fashions have left Foot Locker in a precarious place. 
Supply: Investing.com
FL inventory ended Friday’s session at a 52-week low of $17.32, a stage not seen since August 2023. At present valuations, Foot Locker has a market cap of $1.6 billion. Shares, that are buying and selling beneath their key shifting averages, are down 20.4% year-to-date.
Bear in mind that Foot Locker at the moment has a ‘WEAK’ InvestingPro Monetary Well being rating of 1.5 out of 5.0, reflecting operational challenges and monetary pressures.
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Disclosure: On the time of writing, I’m lengthy on the S&P 500, and the through the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Belief ETF (QQQ). I’m additionally lengthy on the Invesco High QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I repeatedly rebalance my portfolio of particular person shares and ETFs based mostly on ongoing threat evaluation of each the macroeconomic setting and corporations’ financials.
The views mentioned on this article are solely the opinion of the creator and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
