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At first, the stock market didn't know what to make of the monthly jobs report. But soon enough, investors figured it out sending the Dow Jones, Nasdaq and S&P 500 all surging higher Friday. With that in mind, let's take a look at our top stock trades for next week.
Top Stock Trades for Tomorrow #1: Apple (AAPL)
After a robust earnings report , Apple Inc. (NASDAQ: AAPL ) was already charging higher. A report that Warren Buffett bought another75 million shares of the tech giant for Berkshire Hathaway Inc. (NYSE: BRK.A , NYSE: BRK.B ) is moving it higher again. Buffett is such a boss.
I guess that's one way to spend some of the more than $100 billion Berkshire was disappointed to be sitting on.
In any regard, just the other day we said investors could stay long Apple over $175, a rough marker of resistance dating back to November. Bursting over $180 and hitting new all-time highs makes AAPL stock one investors want to own.
I continue to believe it will push to $200 and could be exactly what's needed to drag the Nasdaq and Dow out of their funk.
Top Stock Trades for Tomorrow #2: Starbucks (SBUX)
Starbucks Corporation (NASDAQ: SBUX ) shares are rallying more than 3% Friday on rumors that it will complete a deal with NESTLE S A/S ADR (OTCMKTS: NSRGY ) regarding its consumer packaged-goods business.
The price action follows the disappointing reaction to its second-quarter results, ( but you shouldn't be surprised by that slump! )
SBUX finds itself right up against $58, a precarious level over the past 18 months. A strong move above it early next week (on confirmation of the deal, perhaps) would make it a strong candidate to retest $60 and possibly push through.
Nullifying the deal likely sends SBUX back to down to its 200-day moving average, and perhaps even lower if it doesn't hold.
Top Stock Trades for Tomorrow #3: Activision (ATVI)
Activision Blizzard, Inc. (NASDAQ: ATVI ) handily beat earnings and revenue expectations, but shares fell 1% in response on Thursday evening. That, however, likely had more to do with the earnings report being accidentally released during the regular trading session.
In our quick take , we were cautiously optimistic on ATVI. However, at the time, the stock was not reacting well. I said, "I'm constructive on ATVI stock above the 200-day moving average and $66. But a close over the 50-day and 100-day moving average would make me much more enthusiastic about a potential retest of the highs."
Friday's action allowed ATVI to puncture through those moving averages and we now feel better about a potential retest of the highs. Below the 200-day and we want out, but there could be upside up toward the $74 level and possibly higher.
Top Stock Trades for Tomorrow #4: Ventas (VTR)
Perhaps not a common stock for trading, but Ventas, Inc. (NYSE: VTR ) is one worth paying attention. If the capital gain potential isn't enough for investors, at least they can sink their teeth into a 6% dividend yield.
However, after a solid earnings report last week, VTR continued its rally this week. Our take before this week was, "I don't know that the $52 level will be significant, but closing above this level with authority next week would give bulls a much-needed confidence boost."
$54 could give VTR a pause given its robust rally over the past few weeks. But at the very least, long-term investors should feel much better about holding onto Ventas at this point. Here are a few other dividend names we like .
Top Stock Trades for Tomorrow #5: Box (BOX)
Box Inc (NYSE: BOX ) caught a big rally late last month when it was pitched at the Sohn Conference as a fund manager's top pick .
BOX initially ran to $24, up about 10% on the day, before backing off and consolidating. That period didn't last long and on Thursday, BOX pushed above $24 again. Friday's action was both good and bad. It would have been wildly bullish to see another strong rally on the day, perhaps up to $25 with the strength in the stock market.
Instead, Box was one of the few losers in the session. The positive take from Friday is that it stayed above $25.
I won't sell Box because I've been a long-term investor in the name and continue to believe in the story . However, if I were trading it, taking some profit could be in order. First, $24 has been a very tough nut to crack. Second, its momentum via the MACD (blue rectangle) suggests bulls could lose some steam soon. Third, the RSI (blue oval) shows that Box is on the verge of becoming overbought.
The key here for bulls is to stay at or above $24. That opens the door to a much better 2018.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell held a position in AAPL, SBUX and BOX.
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