Market Wrap-Up for Oct.8 (FO, JCP, CAT, DE, GE, INTC, BUCY, more)
Don't look now, but we are back over Dow 11K, despite the continuing deterioration in the jobs market. The lack of big volume gains as we continue to push gains higher does make me a bit worried, not to mention nearly 90% of stocks now trading over their 50-day moving average. Keep this in mind as one considers getting overly aggressive here.
Shares of Fortune Brands( FO ) and J.C. Penney( JCP ) ran up on news two different private equity firms have established sizable stakes in both companies. We may continue to see this play out as some big-money players place bets on asset prices reflating, courtesy of the Fed's printing press obsession. The market was able to push aside a weaker-than-expected jobs report out earlier today, with commodity stocks once again racing higher.
I am watching the commodity/equipment space seeing lots of fast-money investor interest. The names to watch there include Deere & Co.( DE ) , Caterpillar( CAT ) , Bucyrus International( BUCY ) , and Joy Global( JOYG ) . Outside of Caterpillar, which does have a 2% dividend yield, none of the others offers much as far as an attractive dividend payout. If you are looking for growth, these are certainly plays to watch. We have been looking for a decent pullback to get on board, but it certainly does not look to be happening anytime soon. If you decide to venture into this space, be ready to be nimble, as these names are quite volatile and are attracting a very skittish momentum money crowd.
Be sure to catch up with our latest watchlist updates this weekend, as well as the latest "Learn to Be Rich" articles as I'd like everyone to gain the money knowledge they need to navigate through other parts of their financial life outside of investing. And of course, check our our currently "Recommended" names on our industry-leading Best Dividend Stocks list.
Have a great weekend everybody, and thanks for reading!