- The market’s attention this week will center on the U.S. jobs report, the ISM PMI survey, and a fresh wave of AI-driven tech earnings.
- Palantir Technologies looks set to post striking growth, fueled by accelerating demand for its AI-powered platforms.
- Meanwhile, The Walt Disney Company is under pressure as investors closely evaluate streaming profitability and trends in its theme park business.
U.S. stocks closed higher on Friday, with both the S&P 500 and Nasdaq hitting fresh record highs as investors weighed signs of progress in U.S.–Iran ceasefire talks, while a strong rally in Apple Inc. shares provided additional support.
For the week, the S&P 500 climbed 0.9%, while the Nasdaq Composite and the small-cap Russell 2000 gained 1.1% and 0.9%, respectively. The Dow Jones Industrial Average posted a more modest increase of about 0.5% over the same period.
Looking ahead, markets may see increased volatility as investors weigh the outlook for economic growth, inflation, interest rates, and corporate earnings amid ongoing tensions with Iran.
The key item on the economic calendar will be Friday’s U.S. employment report for April, which is expected to show job gains of around 73,000, with the unemployment rate holding steady at 4.3%. In the meantime, the ISM services PMI will also draw close attention as an indicator of economic activity.
That will be accompanied by a busy lineup of Federal Reserve speakers, with policymakers including Christopher Waller, John Williams, Michelle Bowman, Beth Hammack, Mary Daly, and Alberto Musalem all scheduled to speak publicly.
Elsewhere, earnings season remains in full swing, with more than 100 companies in the S&P 500 due to report results this week. Key names include Advanced Micro Devices, Palantir Technologies, CoreWeave, Arm Holdings, The Walt Disney Company, McDonald’s, and Uber Technologies.
They will be joined by other notable firms such as Shopify, PayPal, Coinbase, Pfizer, and Arista Networks.
Regardless of how the market moves, here’s one stock that could attract strong demand and another that may face renewed downside pressure. Keep in mind, this outlook is strictly for the week ahead, from Monday, May 4 through Friday, May 8.
Stock to Buy: Palantir Technologies
Palantir stands out as a compelling buy ahead of its Q1 2026 earnings release, scheduled after Monday’s market close. The data analytics and AI platform firm continues to deliver rapid growth, fueled by strong demand for its Artificial Intelligence Platform (AIP) and accelerating adoption across commercial clients.
Sentiment has been increasingly bullish in the run-up to earnings, with analysts steadily revising their forecasts higher. Notably, all 18 of the most recent estimate changes have been upward revisions, underscoring growing confidence in the company’s near-term performance.
In the options market, traders are pricing in a post-earnings move of roughly ±9.5%, pointing to expectations of elevated volatility following the report.
Analysts expect adjusted EPS to reach $0.28, marking a 115% year-over-year surge, with revenue estimated at about $1.54 billion, up 74% annually. Both U.S. commercial and government segments are projected to grow by more than 60%, driven by strong demand for Palantir’s AI solutions.
Although the stock has declined roughly 20% in 2026 due to sector rotation, Palantir has consistently outperformed expectations and lifted its guidance. Market speculation around a potential stock split is also drawing attention. With Wall Street holding a Moderate Buy rating and average price targets near $192, a solid earnings beat combined with upbeat updates on backlog and AIP momentum could spark a sharp recovery.
Palantir is currently consolidating within a clearly defined range, with key support coming from the SuperTrend indicator and the Ichimoku Kijun level around $139.48–$140. While MACD is showing signs of improving bullish momentum, the broader price structure still reflects a pattern of lower highs since the November peak.
This technical setup suggests that, barring a significant earnings disappointment, the stock could be positioned for an upside surprise and a momentum-led breakout.
Trade Setup:
- Entry: ~$144.10
- Target: $164.30 (≈ +14% upside)
- Stop-loss: $139.00 (≈ -3.6% risk)
Stock to Sell: Disney
In contrast, Disney is being viewed as a potential sell or short ahead of its Q2 fiscal 2026 earnings, scheduled for Wednesday morning before the market open. Although the company benefits from a diversified business model spanning streaming, theme parks, and content production, its near-term outlook points to only moderate growth amid ongoing headwinds.
Sentiment has also turned more cautious going into the report, with all 19 recent analyst revisions moving downward. Meanwhile, the options market is currently pricing in an expected post-earnings move of about ±5.1% in the stock.
Consensus estimates point to earnings per share of $1.49, up 3.4% compared to the same period last year, with revenue expected to increase 5.1% year-over-year to $24.84 billion.
More importantly, investors will focus on three key drivers: streaming profitability, theme park performance, and broader macroeconomic and geopolitical pressures affecting discretionary spending.
The Burbank-based entertainment giant is also expected to issue relatively cautious forward guidance, reflecting ongoing challenges in the Disney+ segment as well as uncertainty tied to global conditions impacting its theme park operations.
Disney recently staged a V-shaped rebound from the $92.18 area, but the upside momentum is now showing signs of exhaustion. Despite the bounce, the broader trend remains under pressure, with the 150-day moving average near $109.65 and a strong volume-based resistance zone around $111.82 continuing to cap further gains.
From a technical standpoint, the structure still favors sellers in the near term, making Disney more of a sell or underweight candidate into earnings for short-term traders and risk-conscious investors.
Trade Setup:
- Entry: ~$103.00
- Target: ~$95.00 (≈ +7.7% gain)
- Stop-loss: ~$107.10 (≈ -4% risk)
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