- Iran-related geopolitical tensions, upcoming PPI inflation data, and the kickoff of the first-quarter earnings season will dominate market attention in the coming week.
- Netflix appears poised for a possible breakout as it approaches its Q1 earnings release.
- Meanwhile, Johnson & Johnson is expected to face pressure, with forecasts pointing to a decline in earnings.
U.S. stocks mostly ended lower on Friday, though the S&P 500 still posted its strongest weekly performance since November, as investors monitored the fragile two-week ceasefire between the U.S. and Iran.
For the week, the benchmark S&P 500 surged 3.6%, the Dow Jones Industrial Average advanced 3%, the tech-heavy Nasdaq Composite climbed 4.7%, and the small-cap Russell 2000 added 4%.
Looking ahead, market focus will again center on Middle East developments and oil prices after weekend peace talks between the U.S. and Iran ended without an agreement. In response, President Donald Trump said on Sunday that the U.S. Navy will start blockading ships entering or leaving the Strait of Hormuz.
Beyond geopolitical tensions, the upcoming week features a relatively light U.S. economic calendar, with key reports including producer price inflation, existing home sales, and initial jobless claims.
At the same time, the first-quarter earnings season gets underway, with major banks like JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley set to report. Beyond the banking sector, companies including Netflix, Johnson & Johnson, PepsiCo, Taiwan Semiconductor, and ASML are also scheduled to release their results next week.
No matter which way the market moves, below I outline one stock that could attract strong buying interest and another that may face additional downside pressure. Keep in mind, this outlook only covers the upcoming week, from Monday, April 13 through Friday, April 17.
Stock to Buy: Netflix
Netflix looks like a strong candidate for upside this week. The streaming leader is set to release its first-quarter earnings after Thursday’s market close, followed by a live management interview. According to the options market, investors are expecting a notable move in NFLX shares after the announcement, with an implied swing of about ±6.9% in either direction.
Netflix is expected to post earnings of $0.79 per share, marking a 19.7% year-over-year increase. Revenue is projected to rise 15.5% to $12.18 billion, driven by solid streaming growth, strategic price hikes, and the rapid scaling of its ad-supported tier.
Investor sentiment has improved after Netflix walked away from acquiring the streaming and studio assets of Warner Bros. Discovery, sidestepping a large, debt-intensive deal. This decision helped maintain balance sheet flexibility and allowed the company to redirect capital toward content creation, share buybacks, and expanding its advertising business.
Looking forward, developments such as Netflix’s push into sports and gaming point to emerging growth opportunities.
After a sharp decline earlier this year—largely triggered by its scrapped attempt to acquire Warner Bros. Discovery’s streaming and studio assets—Netflix stock has staged a recovery as investors shifted their attention back to the company’s fundamental strengths.
The stock is now exhibiting strong upward momentum, having broken out of a double-bottom pattern at $75.21 and climbing to $103.01. It continues to gain traction ahead of Q1 earnings. The MACD remains in bullish territory, while the price is holding comfortably above both the 20-day and 50-day moving averages, indicating a solid uptrend.
Trade Setup:
Entry: around $103
Target: $110.00 (approximately +6.8%)
Stop-loss: $98.60 (approximately -4.2%)
Stock to Sell: Johnson & Johnson
In contrast, Johnson & Johnson appears to be heading into a more difficult earnings period, making it a stock to consider avoiding or selling this week. The company is scheduled to report its Q1 results before the market opens on Tuesday at 6:20 AM ET.
Analyst sentiment has turned more cautious ahead of the release, with roughly half of the recent estimate revisions trending downward. Meanwhile, the options market is anticipating a potential post-earnings move of about ±3.8% in JNJ shares.
Analysts expect a slight decline in Q1 earnings per share, with consensus estimates around $2.68—pointing to a low single-digit drop compared to the same period last year. Revenue, however, is projected to remain relatively stable, coming in between $23.4 billion and $23.6 billion, supported by continued strength in the Innovative Medicine and MedTech divisions.
Although the company benefits from a well-diversified portfolio and a solid pipeline—including key treatments like Darzalex—its near-term outlook lacks strong catalysts that could drive a meaningful upside surprise.
Management guidance and commentary are also unlikely to significantly shift the short-term narrative, given ongoing challenges such as the loss of exclusivity for major products like Stelara, along with persistent legal uncertainties.
Johnson & Johnson’s technical outlook has weakened. After reaching a record high of $251.71 in early March, the stock has lost momentum, slipping below both its 20-day and 50-day moving averages, while the SuperTrend indicator has turned bearish.
With a rounding top pattern taking shape, the stock may need to find solid support again before bullish sentiment can return.
Trade Setup:
Entry: around $238.40
Target: $226.30 (approximately +5.1%)
Stop-loss: $247.20 (approximately -3.7%)
Sources: Jesse Cohen
THE ETERNAL SOVEREIGN 
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