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Winning streaks for the S&P and Dow came to end on Wednesday as new trade concerns attempted to snatch attention away from this strong earnings season. However, the NASDAQ just keeps rolling along toward new highs.
The tech-heavy index only advanced 0.06% to 7888.3, but that was enough for a seventh straight day on the plus side. The index is less than 1% from setting a new record and climbing completely out of the recent 'tech wreck' that sprung from Facebook's disappointing quarter.
Trade issues have taken a beat seat during earnings season, but they moved back into the frame on Wednesday when China announced plans for a 25% tariff on $16 billion worth of U.S. imports. This comes just a day after the U.S. published a list of $16 billion worth of Chinese goods to be hit with tariffs. Now that earnings season is winding down, everyone is wondering if trade headlines will again dominate the market.
The S&P ended four days in the green but only slipped by 0.03% to 2857.7, so it too remains less than 1% away from making history. The Dow spent the whole day on the negative side but finished lower by just 0.18% to 25,583.8, snapping three consecutive days on positive ground.
"I'm hoping we've reached the point in earnings season where the market finds a direction and sticks with it," said Dave Bartosiak, editor of Surprise Trader , Momentum Trader and Blockchain Innovators .
"Today's pause in equities did little to reverse my expectations. Let's hope that the retail stocks don't cause too much concern for markets. Get ready for some summertime quiet to fall on the market," he continued.
The media's attention today, though, wasn't focused on trade or earnings. Leave it to Tesla CEO Elon Musk to take all the air out of the room. Yesterday, he pondered taking the company private in a Tweet. Now the market is wondering if he violated a SEC rule and if he truly has "funding secured". We'll have to wait and see where this story goes. The stock was down about 2.4% today after soaring 11% on Tuesday.
Today's Portfolio Highlights:
Surprise Trader: Shares of energy-related names have been gushing higher after reporting their quarters this earnings season, thanks to the rising price of crude oil . On Wednesday, Dave added a company that has yet to report in hopes of a big jump afterward. Select Energy Services (WTTR) offers drilling and completion activities associated with hydraulic fracturing. It reports after the bell tomorrow and has an impressive Earnings ESP of 23.97%. The editor added WTTR with a 12.5% allocation. To make room, he sold the stalling Turtle Beach (HEAR) position for an 8.6% profit. Read the full write-up for more.
TAZR Trader: Shares of Cimarex Energy (XEC) slumped on Wednesday after the E&P company missed earnings expectations slightly on soft oil production. JPMorgan and a few i-banks lowered their outlooks, but most analysts are staying put since XEC kept its guidance unchanged. Kevin sees a great opportunity here to buy on the dip, so he added more shares to the portfolio. Read the complete commentary for a lot more on this move.
Momentum Trader: After four straight quarters of positive earnings surprises (including a beat of 25% in its recent report), Radware (RDWR) is nearing its 52-week high. Dave thinks this momentum can continue, so he bought the Internet traffic company with a 12.5% allocation. Get a lot more specifics on this new buy in the full commentary.
All the Best,
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