Market Mastery: Gordon Reid’s Top Stocks for July 2024
Gordon Reid’s Strategic Picks in U.S. Equities: Amazon, NASDAQ, and Morgan Stanley

Gordon Reid, president & CEO of Goodreid Investment Counsel Corp., shared his top picks for July 16, 2024, focusing on U.S. equities. With an astute eye on the market's pulse, Reid's selections highlight his confidence in the resilience and potential growth within key sectors of the U.S. economy.
Market Outlook
The U.S. Federal Reserve is hinting at a rate cut in September, ushering in a pivotal phase in the monetary cycle. The U.S. economy remains robust with positive labor statistics, moderate economic growth, and strong corporate profits. However, consumer confidence is waning despite recent real wage growth, reflecting price fatigue after a period of high inflation.
Rate cuts can signal either normalization or defensive measures. A normalization of rates post-inflation control is likely to be welcomed by equity markets, favoring small-cap stocks and broadening market leadership beyond the "magnificent seven." Conversely, if rate cuts are perceived as a response to economic weakness and recession fears, market reactions could be negative.
Top Picks
Amazon (AMZN NASD)
Amazon continues to excel across its business segments. The e-commerce giant's retail operations have capitalized on the expanded infrastructure built during the pandemic, yielding significant returns. Amazon Web Services (AWS), a leader in cloud services, maintains its dominance and is poised for substantial earnings growth, especially with the rising interest in artificial intelligence. Reid sees Amazon as a powerhouse on the verge of major earnings gains.
NASDAQ (NDAQ)
NASDAQ's growth is driven by two key factors. First, its substantial investments in technology have enhanced its recurring revenue streams, becoming a larger part of its business model. Second, the booming capital markets at major banks are expected to generate numerous financial deals and new issues, bolstering NASDAQ's performance. Reid anticipates strong growth for NASDAQ over the next year.
Morgan Stanley (MS NYSE)
Morgan Stanley stands at the forefront of the financial sector's resurgence. With the tightening cycle nearing its end, inflation easing, and increased corporate confidence, the stage is set for heightened profitability. At a valuation of less than 14 times the projected 2025 earnings per share (EPS) and a 3.5 percent dividend yield, Morgan Stanley presents a compelling investment opportunity. Reid is confident in the stock's potential, considering it a solid choice for investors.
Conclusion
Gordon Reid's top picks for July 16, 2024, reflect a strategic approach to navigating the evolving market landscape. Amazon's multifaceted growth, NASDAQ's technological advancements, and Morgan Stanley's financial resilience make these stocks stand out in the current economic climate. Investors can draw confidence from Reid's insights as they make informed decisions in the dynamic world of U.S. equities.
