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Mexico Deal Keeps S&P, NASDAQ in Record Territory


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What's better than trade negotiations? An actual trade deal , of course! And it looks like that's what the U.S. and Mexico worked out in their recent talks, though its very preliminary and still needs to bring Canada into the fold.

But for today, the news was enough to send the major indices sharply higher, underscoring once again that trade outweighs politics and all other issues as the market's #1 concern.

The NASDAQ closed above 8,000 for the first time in history with a jump of 0.91% to a new record of 8017.9. The S&P was up 0.77% to make its own history at 2896.7. These indices have now made new all-time highs for two straight quarters.

The Dow entered Monday a little more than 3% off of its own high, and got about a third of the way closer with an advance of 1.01% (or about 259 points) to 26,049.6. It was the first close above 26K for the index since February.

We should consider this the "don't-call-it-NAFTA" deal, as President Trump thinks the U.S. was "hurt very badly" by that agreement. He came up with the much more exciting moniker of "The United States-Mexico Trade Agreement". But there's one more party that needs to sign off before making this a real success…and that's Canada. The White House is talking about the possibility of a solely bilateral agreement going forward, but this would go down a lot easier in Congress if our northern neighbor were part of the deal.

But today was about Mexico…and the market loved what it heard. 

Today's Portfolio Highlights:

Technology Innovators: Good results from big data names like Splunk and Tableau Software convinced Brian Bolan to add some exposure to the space. He believes Attunity (ATTU) will do the job nicely. This Zacks Rank #1 (Strong Buy) stock beat the Zacks Consensus Estimate by 240% in its late July report, but the editor is more interested in the future and its analyst day on September 13. Brian likes the way this chart looks right here, so he decided to get long before it moves up in price. Read the complete commentary for more.

Black Box Trader: The portfolio swapped out four names in this week's adjustment. Three of the sold stocks were positive, including a double-digit winner. Here are the positions that left the service:

• Williams Sonoma (WSM, +15.7%)
• Kohl's Corp (KSS, +8.4%)
• Anthem, Inc (ANTM, +4.9%)
• Abercrombie & Fitch (ANF)

The new buys that replaced these names are:

• PACCAR Inc (PCAR)
• DR Horton (DHI)
• Cigna Corp. (CI)
• Old Republic International (ORI)

Read the Black Box Trader's Guide to learn more about this computer-driven service designed to take the emotion out of investing.

Counterstrike: "This progress (between the U.S. and Mexico) is huge. It sounds like the Canadians are ready to deal as well, which is what the market told you today. The agreement has to go to Congress for approval and then Trump can focus on the bigger fish in China.

"The market thinks China will come around as Chinese stocks were all very strong today. This progress with NAFTA is a very hopeful sign, but China last night reversed their recent moves to weaken their currency, perhaps a signal China is willing to deal. If Trump can get China, there is a good chance the market rips to S&P 3000 by Christmas."
-- Jeremy Mullin

All the Best,
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: WSM , KSS , ANTM , ANF , PCAR



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