Dow Jumps 9% in Q3; S&P, NASDAQ Up 7%+

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Friday's session was nothing to write home about (nor was this whole week for the most part), but the quarter was a different story. Bolstered by a fantastic earnings season and an all-around great economy, each of the major indices put together impressive gains over the past three months. 

Even though it usually takes the brunt of negative trade headlines, the Dow nevertheless persevered in the third quarter and jumped approximately 9%. Quite recently, it reached new all-time highs as well. Today, it was up 0.07% to 26,458.31, finishing the week lower by about 1%. 

The S&P had one of its best quarters in years with a gain of 7.2%. On Friday, the index was nearly breakeven at 2913.98, marking a weekly decline of about 0.5%. 

The NASDAQ has been plotting a different course than its counterparts in recent weeks as tech has come under pressure at certain points. It advanced 0.05% on Friday to 8046.35 and was the only major index in the green for the week with a 0.74% increase. Fortunately, one aspect where it didn't differ from the others was its third quarter performance, as it too reported a nice advance of 7.1%. 

And what about that "scaaaary" month of September? It didn't quite live up to its reputation. The Dow rose 1.9% this month and the S&P increased 0.43%, though the NASDAQ again went its own way and slipped 0.78%. 

So we head into the homestretch of 2018 with trade still very much on the market's mind. Those 10% tariffs that were just implemented on China will jump to 25% if there's no progress by the end of the fourth quarter...and so far there isn't much progress on that front as possible talks were recently cancelled. And the U.S. is still trying to get Canada to join their NAFTA-like agreement with Mexico, though patience appears to be running out for what was once considered a sure thing. 

The new quarter will also have its own challenges, especially the mid-term elections that promise to be much more contentious than usual and could potentially change the balance of power in the House. There will also be another earnings season and most likely a fourth rate hike from the Fed. And there's also Tesla, which was off nearly 14% today in the wake of the SEC's lawsuit and news that Elon Musk turned down a deal. 

It should be an interesting quarter! 

Today's Portfolio Highlights: 

Blockchain Innovators: South Korean financial services company Shihan Financial (SHG) is developing an integrated authentication service using blockchain technology. So it's got Dave's attention! The service is aimed at maximizing the ease of use for mobile apps. And this isn't the first time SHG looked to use blockchain. The editor likes the company's interest in this innovative technology and added the stock to the portfolio on Friday. Learn more about SHG and all of today's moves in the full write-up. 

Counterstrike: Winter is coming! And people are getting ready by buying jackets from Canada Goose Holdings (GOOS). Jeremy picked up this name last month when shares dipped after it had the audacity to report a positive surprise of "only" 33%. The stock has performed as the editor expected, and its now close enough to the $66 target to bank half of the position for a return of 23.6%. He thinks this stock could gain a lot of momentum as the weather gets colder and colder, so he's holding onto the other half with the next target at $73.20. 

Momentum Trader: It looks like Dave was a little too early with women's accessories retailer Vera Bradley (VRA) in June. Shares broke out after its earnings report, but then retreated and forced the editor to sell for a loss. But now its back to the races as shares have jumped for four straight days and filled the post-earnings gap. Another earnings beat and positive estimate revisions have convinced Dave to take another chance on the name, so he used the portfolio's remaining cash to buy VRA again on Friday. Read the complete commentary for more. He also sold ANGI Homeservices (ANGI) for an 8.5% return. 

Have a Great Weekend,
Jim Giaquinto

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: SHG , VRA , ANGI , GOOS

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