It's hard to tell what's more exciting: (1) the Dow finally hitting 20,000 after several attempts or (2) the media finally being able to move on from the issue. (The editors would probably go with option 2.) Nevertheless, it happened on Wednesday about a month later than initially expected. You may remember that the Dow had come within 25 points of the mark shortly before Christmas with many predicting it would get over the hump before 2016 was out. But it wasn't to be, and most of January has been too concerned with the new president than hitting some psychological target.
Mercifully, it only took two strong sessions to get the job done, rather than meandering around like before. Today, the Dow climbed 0.78% to 20,068.5. It was 200 points away as recently as Monday. Now, the S&P is nearing its own bit of history, having climbed 0.80% to within two points of 2300 at 2298.4. The NASDAQ was up 0.99% to 5656.3. Needless to say, these are new all-time highs. You might credit some of this rally to a resumption of the "Trump Trade", but it had just as much to do with a solid earnings season thus far that continued today with Boeing (BA).
The portfolios saw several buys today, but they came from only two portfolios. The new TAZR Trader added four more stocks today after adding three yesterday. Meanwhile, Game Changers put the rest of its cash into two new additions. Learn more about these moves below:
Today's Portfolio Highlights:
• TAZR Trader is really starting off with a bang. Kevin added four more names on Wednesday, which comes to seven picks in two days. Here's a quick synopsis of the stocks, which are all Zacks Rank #2s (Buys):
-- The macro infrastructure and inflation backdrop is making heavy metal worker Chicago Bridge & Iron (CBI) very attractive. The editor is impressed with its Zacks VGM Score of "A" and finds its valuation to be very compelling. He added it with a 10% allocation.
-- With a breakout to new 52-week highs, Kevin believes that LyondellBasell Industries (LYB) will soon be eclipsing $100. This chemical company is part of a space in the top 28% of the Zacks Industry Rank.
-- The chart for Argan (AGX) is "superb" , while projections for top line growth of 9% this year suggests more EPS surprises could be at hand. The company provides wiring services to the Feds and underground/aerial construction services to major telecoms and utilities.
-- Finally, Cognizant Technology Solutions (CTSH) is in turnaround mode with a compelling valuation and the potential to bust above some heavy resistance. This software company has an impressive Zacks VGM Score of "A".
The latter three buys above each have a 7% "starter" allocation in the new TAZR Trader , which means Kevin would be more likely to build positions on pullbacks in the near future. Learn A LOT more about all of today's moves in the complete commentary.
• Game Changers put the rest of its cash to work on Wednesday with two new additions. First up, the portfolio bought an approximately 8% position in Pure Storage (PSTG), a Zacks Rank #2 (Buy) enterprise data storage platform that has moved to under $12 from $15. The editor really likes this space and believes that recent reports from STX and WDC will benefit shares.
The other buy today was Jabil Circuit (JBL), a Zacks Rank #1 (Strong Buy) provider of electronic manufacturing services. The editor loves its 14x forward multiple and its Zacks Style Score of "A" for Growth and Value. Brian added JBL with an approximately 6% position. Read the complete commentary for much more on both of these new picks.
• "We finally did it, Dow 20k has been eclipsed and we don't have to worry about it anymore. Our S&P Fibonacci targets under 2290 were hit as well, which completes the Trump trade move from the election.
"I don't like being in a trade without a setup, but this market has the potential to explode and I'm seeing a possible run up to 2400 as a possibility. Hopefully it won't run away and there will be another chance to buy a dip.
"I turned into a skeptical bear early in 2016, to a skeptical bull late 2016 and now a raging bull in early 2017. The Trump trade is a serious fundamental shift for markets. The combination of corporate take cuts and a decrease in regulation is a perfect storm for stocks. Dow 20k should also bring retail back to the party, helping trading and volume," said Jeremy in Zacks Counterstrike.
All the Best,
Jim Giaquinto Recommendations from Zacks' Private Portfolios:
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