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NASDAQ, S&P Up 1%+ This Week

President Trump hasn't forgotten about the $200 billion in China tariffs that've been in limbo the past few weeks. On Friday, news reports said he was willing to proceed with his threat, and the impact may have kept the S&P from reaching an all-time high. In the end though, the major indices finished the week with solid gains.

We've recently been hearing about the potential for new trade talks with China, which suits the market just fine. But who knows what will happen if POTUS actually follows through with the tariffs? So far, the market isn't panicking, as evidenced by the indices' recovery from the mid-day selloff.

"There seems to be some complacency surrounding the tariffs. It seems that investors don't believe the extra round of tariffs will go into effect at all. Essentially both China and the market are calling Trump's bluff," said Jeremy in Counterstrike .

The S&P entered Friday's session just about 10 points off a new record…and that's pretty much where it closed as well. The index looked like it might try to make history today until the trade news broke. It still recovered enough from a dip to stay above 2900 for a second straight day and gain 0.03% to nearly 2905. It advanced 1.2% for the week.

The NASDAQ couldn't get back into the green, but only slipped by 0.05% to 8010. It was the best performer of the week with a rise of 1.4%. Therefore, it made up more than half of last week's 2.6% plunge. Fortunately, last week's "tech wreck" didn't carry over thanks to a good September event for Apple and some recovery in the chipmakers.

The Dow had the wildest swings but eventually finished with a 0.03% increase to 26,154.7. The index advanced 0.9% this week.

Today's Portfolio Highlights:

Surprise Trader: With two buys in two days for this portfolio, it kind of feels like earnings season! But its not. However, Darden Restaurants (DRI) is reporting before the bell on Thursday, September 20. The parent of the Olive Garden and LongHorn Steakhouse brands has an excellent history of beating the Zacks Consensus Estimate. In fact, it hasn't missed in the last four years. And it enjoys a positive Earnings ESP of 1.39% for next week's report. Dave is expecting this impressive streak to continue, so he added DRI on Friday with a 12.5% allocation. Read the full write-up for more.

Counterstrike: After nearly doubling in price following a couple strong earnings reports, Jeremy's plan was to buy Lululemon (LULU) once it pulls back. He was hoping it would get down to $140, but this athletic clothing company is just too strong. Therefore, the editor decided to buy it on Friday with a 12% allocation after a rather modest pullback to about $150. But no worries. He still considers that price to be a great bargain for a company that seems set to rise to $175 in the next few months and possibly to $200 longer term. Most recently, LULU reported a positive surprise of 45% and raised its guidance for 2018. Read the full write-up for more on this new addition.

Momentum Trader: Shares of Boingo Wireless (WIFI) soared to new 52-week highs following a strong earnings report that included a positive surprise of more than 135%. Dave added this Zacks Rank #1 (Strong Buy) Wi-Fi software and services provider on Friday with a 12.5% allocation. See the complete commentary for more.

Value Investor: The portfolio doesn't have much exposure to the healthcare industry, but Tracey found a name that makes the grade for this service. HCA Healthcare (HCA) is a Zacks Rank #2 (Buy) that operates 179 hospitals and 120 freestanding surgery centers in 20 U.S. states and London. Analysts liked its recent acquisition of Mission Health, which opens HCA to North Carolina. Shares are still cheap despite the stock jumping 49% year to date. Earnings are expected to improve 40% in 2018 and another 7.6% in 2019.

The editor really likes her second pick today because of its "outstanding" management. Crane Co. (CR) is a diversified manufacturer of highly-engineered industrial products with divisions that include Aerospace & Electronics, Payment & Merchandising and Engineered Materials. Its value fundamentals are a little higher than Tracey normally likes, but its still attractive for such a quality name. This Zacks Rank #2 (Buy) has beaten the Zacks Consensus Estimate every quarter for more than two years and is expected to grow earnings in the upper teens through 2021. Read the full write up for a lot more on these new picks, including their price targets.

Have a Great Weekend,

Jim Giaquinto Recommendations from Zacks' Private Portfolios:

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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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