• Inflation data, Fed FOMC minutes, Trump tariff news and the start of Q1 earnings season will be in focus this week.
• Cal-Maine Foods’ strong growth trajectory makes it a promising buy ahead of its earnings report.
• Delta Air Lines faces industry-wide challenges and economic uncertainties, potentially making it a stock to sell.
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The stock market sold off sharply for a second day on Friday, with the major indexes suffering their worst week since the breakout of Covid in early 2020, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.
Source: Investing.com
For the week, the Dow Jones Industrial Average declined 7.9%, the S&P 500 tumbled 9.1%, while the tech-heavy Nasdaq Composite slumped 10% to enter a bear market.
Highlighting growing panic among investors, the CBOE Volatility Index, or Wall Street’s fear gauge, closed at its highest level since April 2020.
More volatility could be in store in the week ahead as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings amid President Trump’s trade war.
On the economic calendar, most important will be Thursday’s U.S. consumer price inflation report for March, which could spark further turmoil if it comes in higher than expectations.
The CPI data will be accompanied by the release of the latest figures on producer prices. The University of Michigan consumer sentiment index is also important, especially the report’s readings on inflation expectations.
Source: Investing.com
Investors will also focus on the minutes of the Federal Reserve’s March FOMC meeting. This could give some insight into the future path of interest rates.
Elsewhere, a new earnings season is set to get underway, with JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Morgan Stanley (NYSE:MS), BlackRock (NYSE:BLK), and Delta Air Lines (NYSE:DAL), some of the big names due to report. Commentary about consumer and business demand will be key.
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 7 - Friday, April 11.
Stock To Buy: Cal-Maine Foods
Cal-Maine Foods (NASDAQ:CALM), the nation’s largest egg producer, is gearing up to report its fiscal third-quarter earnings on Tuesday after the market closes at 4:05PM ET. According to the options market, traders are pricing in a swing of about 9% in either direction for CALM stock following the print.
Analysts are setting a high bar, expecting triple-digit earnings growth—a staggering feat that would mark the third consecutive quarter of explosive gains following a lackluster prior year. This momentum stems from favorable market conditions, including elevated egg prices driven by supply constraints and strong demand.
Source: InvestingPro
Consensus estimates call for Cal-Maine to deliver earnings per share of $10.75, soaring 257% from EPS of $3.01 in the year-ago period. Meanwhile, sales for the period are expected to increase 102% annually to $1.42 billion.
This anticipated growth is underpinned by a variety of factors, such as increased demand for eggs, favorable pricing conditions, and Cal-Maine’s strategic efforts to optimize production and distribution.
Despite the recent drop in egg prices amid softer consumer demand, I believe that Cal-Maine’s management will provide upbeat profit and sales guidance for its full fiscal year amid the ongoing impact of avian influenza on poultry inventories, which are at their tightest in over a decade.
Source: Investing.com
CALM stock ended Friday’s session at $92.29 and now testing key resistance levels within a two-month consolidation pattern. A strong earnings beat could propel shares past this hurdle, rewarding investors who get in ahead of the report.
It is worth mentioning that Cal-Maine Foods shows impressive financial health with a ‘VERY GOOD’ overall score of 8.6/10. The company’s balance sheet is particularly strong at 9.4/10, indicating minimal debt concerns. Profitability metrics are solid at 8.7/10, though growth scores are more modest at 7.6/10.
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Stock to Sell: Delta Air Lines
Contrastingly, Delta Air Lines is facing headwinds that make it a stock to approach with caution this week. The airline is scheduled to report its first-quarter earnings on Wednesday at 6:30AM ET, and the outlook is bleak.
As could be expected, an InvestingPro survey of analyst earnings revisions reveals growing pessimism ahead of the print, with all ten analysts covering Delta revising their EPS estimates downward in the past 90 days. Soft consumer spending, driven by a challenging economic environment, has put pressure on Delta’s profitability and revenue. 
Source: InvestingPro
Wall Street sees the Atlanta, Georgia-based airliner earning $0.44 per share, falling 2% from the year-ago period. Meanwhile, Delta is expected to post a modest 7% increase in revenue, up to $13.6 billion.
The airline industry, particularly Delta, has been navigating turbulent skies due to a combination of factors, including reduced bookings, decreased corporate travel, and heightened price sensitivity among consumers. These challenges are further compounded by the broader economic uncertainty and the potential impact of tariffs on international travel demand.
Keeping that in mind, Delta CEO Ed Bastian is likely to strike a cautious tone regarding the company’s fiscal 2025 outlook. Market participants expect a sizable swing in DAL stock after the print drops, according to the options market, with a possible implied move of nearly 10% in either direction.
Source: Investing.com
DAL stock fell below $35 for the first time since late 2023 on Friday before closing the session at $37.25. At current valuations, Delta has a market cap of $23.9 billion, making it the most valuable airline company in the world. Shares, which are trading below their key moving averages, are down 38.4% in 2025.
Not surprisingly, InvestingPro’s AI-powered quantitative model rates Delta Air Lines with a ‘FAIR’ Financial Health Score of 5.9/10, reflecting concerns over its spotty balance sheet, declining free cash flow, and weakening growth prospects.
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Disclosure: At the time of writing, I am short on the S&P 500 and Nasdaq 100 via the ProShares Short S&P 500 ETF (SH) and ProShares Short QQQ ETF (PSQ).
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.