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An Exhausting, Yet Positive Week

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If you're a little more exhausted than usual at the end of this week, you're not alone. It was a crazy five days! President Trump wasted no time in his first week at the White House by signing numerous executive actions on a number of issues. He also met the UK leader, cancelled a meeting with the Mexican one and plans to talk to Putin on the phone.

Meanwhile as all this was happening, the Dow finally surpassed 20,000, and has stayed above that mark since. Friday's session, though, was challenged by a lower-than-expected GDP for the fourth quarter. Yet the major indices were still able to weather that storm rather well. The S&P was down 0.09% to 2294.7 and the Dow declined only 0.04% to 20093.8. The NASDAQ managed to increase 0.10% to 5660.8. But for the full week, each of those indices climbed by approximately 1%.

In the portfolios, the Reitmeister Trading Alert added a consumer-focused stock that wasn't in retail, while Stocks Under $10 diversified a bit from the electronic and semiconductor areas. Finally, Dave added an oil pick in Momentum Trader because he feels that area will outperform this quarter. Read about all these moves in the highlights section below:

Today's Portfolio Highlights:

• How does one invest in consumer-focused stocks, yet steer clear of retail concerns like border taxes and the "Death By Amazon" syndrome? Steve says you should hit the high seas, which is why he bought a 6.8% allocation in Royal Caribbean (RCL) on Friday for the Reitmeister Trading Alert. RCL just reported a beat-and-raise quarter, sending price targets up to $110 for a stock that is still below $95. By Monday or Tuesday, the editor thinks this Zacks Rank #3 (Hold) will have ascended to a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy). Read more about this new addition in the complete commentary.

• Dave believes that oil is going to outperform this quarter, so he plans to take advantage with a 12% position in Halliburton (HAL) for Momentum Trader. The stock initially dipped after its recent earnings report, but shares have been rallying since then. The editor plans to ride this stock into the $60s from here. Make sure to read his complete commentary about this new addition, which includes a breakdown of its chart.

Stocks Under $10 wants to get away from tech a bit, but still wants to be part of the "Trump Trade". So Brian picked up Spartan Motors (SPAR), which makes and sells heavy duty chassis for custom made trucks and specialty vehicles. This addition helps to diversify the portfolio after buying a lot of electronic and semiconductor names. SPAR is a Zacks Rank #1 (Strong Buy) with a Zacks Style Score of "A". It has beaten the Zacks Consensus Estimate in eight of the last ten reports. It doesn't report again until late February. Read the full write-up for more. This is the second of three trades that Brian first mentioned on Tuesday, so get ready for another buy on Monday.

• "This morning GDP came in at 1.9%, weaker than the 2.2% expected. Normally a weak print like this could cause selling in the markets, but indices held up pretty well all day.

"Markets are forward looking and don't really care about Q4 GDP. What they do care about are the policies that will be put in place by the Trump administration over the next six months. Investors should expect the indices to stay elevated if regulations get rolled back, taxes get cut, and an infrastructure plan moves forward. If Trump can get that done, future GDP prints will improve.

"Trading was pretty muted again today. Volume continues to be anemic and the range is tight. If you actively trade you are frustrated right now. Traders live on volatility and there isn't much of any at the moment," said Jeremy in Zacks Counterstrike.

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.


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

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