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S&P Fights Past Growth Concerns to Reclaim 2800


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The market may be concerned about slowing growth and inverted yields, but that doesn't mean we're done rallying. The major indices each enjoyed solid gains on Tuesday for the first time in three sessions.

Financial stocks have been under pressure since the Fed announced a moratorium on rate hikes for 2019. However, today they bounced back, along with tech and energy.

The S&P continues to dance around 2800. It slipped slightly below the mark yesterday, but came roaring back today with a 0.72% advance to 2818.46. The NASDAQ was up 0.71% to 7691.52. These were the first positive closes since last Thursday.

Tech had a good session even though Apple dipped another 1%. The iPhone maker is now down more than 2% since announcing a suite of new services on Monday, including the Apple TV+ streaming platform and the Apple Card credit card. Yesterday's event included Spielberg, Oprah, Aquaman and even Big Bird (among others), but it didn't include a price for the services.

Meanwhile, the Dow was the only major index to finish on the plus side yesterday with a tiny gain amid all this nervousness. This session's advance was much more robust with a rise of 0.55% (or nearly 141 points) to 25,657.73. However, it had been up approximately 280 points at its best of the session.

Today's Portfolio Highlights:  

Stocks Under $10: The EMCORE (EMKR) move was not working out as Brian Bolan had hoped, so he sold the stock on Tuesday. However, the editor still wants exposure to the space, so he replaced the open position with LG Display (LPL). This company makes LCD panels that are used in phones, computers, notepads, etc. Basically, LPL keeps the portfolio with exposure to electronics, but includes a better chart and a better value than EMKR. Learn more about today's moves in the complete commentary.

Surprise Trader: We already know how much Dave loves to see a "bottom-left to top-right" price move on a stock's chart. But it's even better when earnings take the same trajectory. That's the case with Ollie's Bargain Outlet (OLLI), a Zacks Rank #2 (Buy) retailer of closeouts, excess inventory and salvage merchandise.  This is a very quick turnaround for the portfolio as OLLI is scheduled to report after the bell today! The company has a Positive Earnings ESP for the quarter. The editor added OLLI on Tuesday with a 12.5% allocation. He also sold Azul (AZUL) for a return of 4.4%. Read the full write-up for more on all of today's moves.

Home Run Investor: Patience can be profitable. For example, Brian Bolan held onto Survey Monkey (SVMK) even after the survey software company dipped by double-digits after its earnings report. But the editor didn't think its numbers were that bad and decided to hold onto the stock despite its pullback. Good move! Today he's selling SVMK for a return of 18.9% in about a month-and-a-half.

TAZR Trader: The portfolio may be adding a few small software names this week as this industry's momentum is leading the market. On Tuesday, Kevin kicked things of by adding Mimecast (MIME), which offers cloud security and risk management services. More specifically, the UK-based firm provides email management services that protect companies from spam, viruses, malware, etc. MIME launched to profitability in the past year and is expected to grow earnings by 80%+ this year. Meanwhile, the stock valuation is trading well below its high-flying software peers at just 8X sales. The editor added MIME with a 10% allocation. Read the complete commentary for a lot more on this new addition. 

Zacks Short List:
In this week's adjustment, the portfolio swapped out two positions. It short-covered BioMarin Pharma (BMRN) and Schlumberger (SLB), and then replaced these names by buying Ionis Pharma (IONS) and WageWorks (WAGE). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Counterstrike: "I think the next 48 hours will be pretty important for the markets. Above 2840 would confirm an upward bias and break a short setup, with targets at 2905. However, a move below 2800 again would give me downward targets of 2772 and 2755.

"While I'm hopeful a direction is chosen this week, we could just chop around for a couple days before a direction is chosen. We have been stuck in this 2800 area for most of the month, so it would be no shocker to stay here a bit longer.

"I would like to see the market move soon. Problem is the China trade deal is hanging over these markets. Nobody wants to be short and nobody wants to miss the up move. For that reason, we are kind of chopping all over the place.

"Despite the yield curve situation, the market remains strong. This can change overnight of course, but for now we are over 2800 and have to remain cautiously bullish."
-- 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: BMRN , SLB , IONS , WAGE , OLLI



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