NASDAQ Up 5 Straight Days Amid Solid Earnings Reports

Remember, the latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Wednesday, August 8. Sheraz Mian, Brian Bolan, Neena Mishra, CFA, FRM, and David Bartosiak will cover the investment landscape from several angles in this informative event.

Don't miss your chance to hear:

• Brian and David Agree to Disagree on whether the Momentum or Growth investing style will make more money from now until the end of the year

• Sheraz answers your questions in Zacks Mailbag

• Sheraz and Neena choose one portfolio to give feedback for improvement

• And much more

So be sure to mark your calendar then log on to Zacks.com and bookmark this page.

Now that the market has gotten over a couple of disappointing FANG reports, we can finally take a broader look at this earnings season and appreciate just how good it's been.

How good has it been? According to Zacks data, approximately 80% of S&P companies have beaten earnings expectations so far. Given such an impressive performance, stocks would love to move higher as long as none of those pesky trade headlines spoil the party.

The NASDAQ finished its fifth day in the green on Monday and led the major indices higher with a gain of 0.61% to 7859.7. It was helped by a 4.45% advance for Facebook, which sparked the index's nearly 4% pullback in three days after the company's surprisingly soft quarterly report. The NASDAQ has recouped well over half of that deficit during this 5-day run.

And now the S&P is getting interesting as it moves closer and closer to a new all-time high with today's advance of 0.35% to 2850.4. Meanwhile, the Dow started the session in negative territory but managed to swing back to the plus side and finish with an increase of 0.16% to 25,502.2. The index's performance was especially noteworthy when you consider that the Trump administration is leaving open the possibility of auto tariffs on Canada.

"Looking at the macro charts of the day, it appears that the bulls are back in business here. Breakouts are happening all around as great earnings reports have stocks flying high," said Dave Bartosiak, editor of Surprise Trader , Momentum Trader and Blockchain Innovators .

"I expect to see some all-time highs get challenged this week. As earnings season begins to wind down, that could lead to a singular direction and trend for the market," he continued.

Today's Portfolio Highlights:

Large-Cap Trader: John Blank was back on CNBC's Closing Bell this afternoon. He talked about the "good news that's bad news" regarding the market's recent buyback binge. Check out his appearance by clicking here.

Black Box Trader: More than half of the portfolio was replaced in this week's adjustment. The stocks that were sold today include:

• Centene Corp (CNC)

• American Eagle Outfitters (AEO)

• Textron Inc (TXT)

• Terex Corp. (TEX)

• California Resources (CRC)

• United States Steel (X)

The new buys that replaced these names are:

• Rent-A-Center (RCII)

• Sprouts Farmers Markets (SFM)

• Life Point Health (LPNT)

• Platform Specialty Products (PAH)

• NOW Inc. (DNOW)

• CBRE Group (CBRE)

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

Zacks Confidential: Artificial Intelligence is one of the most exciting areas in the technology space. What was once science fiction is today a $12 billion industry that could more than quadruple in the next 3 years. Kevin Cook loves to research this burgeoning space and can tell you where to invest, so Kevin Matras gave him the keys to this week's Zacks Confidential. Learn about the challenges and opportunities in AI and get 5 recommendations by clicking: Artificial Intelligence: Investing in Life 3.0.

Insider Trader:"Did you know that the S&P 500 is less than 1% from its all time high?

"It hasn't felt like it this summer as stocks have been volatile thanks to the tariff worries.

"But we could get to a possible new breakout sometime this week, depending on what happens with the tariffs/trade issues.

"As I've been saying all summer, the bulls are still in charge despite many bears trying to insinuate that the rally was over. Remember that FAANG turning point two weeks ago? It's not happening...yet." -- Tracey Ryniec

All the Best,

Jim Giaquinto

Recommendations from Zacks' Private Portfolios:

Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>

Zacks Investment Research

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.

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.