NASDAQ, S&P Within 1% of New Highs

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This slowly-but-surely market continued to roll higher on Tuesday as an impressive earnings season keeps trade fears at bay. Now, two of the three major indices are knocking on the door of new highs.

The NASDAQ has a 6-session winning streak after climbing 0.31% today to 7883.7. The index got some help from Tesla CEO Elon Musk, who announced today that he was considering taking the company private…in a Tweet! Needless to say, that’s not the way such things are done and it became the big story on Tuesday (and probably for the rest of the week). Trading was halted for a time, but ended the session higher by 11%.

The S&P advanced 0.28% to 2858.5. This index and the NASDAQ are now both within 1% of their all-time highs. Will either of them make it this week? Stay tuned...

The Dow still has a few percentage points to go before making history again, but it was the best-performing major index on Tuesday with a gain of 0.50% to 25,628.9.

The portfolios made a lot of moves in the session. Surprise Trader cashed in a couple of double-digit winners, while Insider Trader, Technology Innovators, TAZR Trader and Stocks Under $10 all bought. The Short List swapped out five names and banked a double-digit profit as well. Let’s get right to all the action:

Today's Portfolio Highlights:

Surprise Trader: Now that this strong earnings season is slowing down, it’s time for Dave to cash in some of those buys from last month. The editor believed that HMS Holdings (HMSY) was all set for another strong report...and he was right! Shares of this cost containment solutions provider to the healthcare marketplace jumped after a solid quarter and today it was sold for a 28.7% profit in less than 2 weeks. “Exactly what you want to see here in Surprise Trader, quick move to the upside and we are out,” said Dave.

The portfolio had another double-digit winner with Ingevity (NGVT), a chemicals business that was added three weeks ago on expectations of a strong quarter. Again, the editor was right and he took home a return of 11.2% on Tuesday. And there are still companies set to report, so Dave will have at least one new addition tomorrow.

Insider Trader: It’s been a great earnings season...but its also been a stubborn one. For example, gaming and hospitality company Caesars (CZR) beat the Zacks Consensus Estimate in its recent quarter, though it still sold off because they didn’t raise guidance. Shares are now down 20% year to date, prompting the CEO and CFO to buy shares of their own company because its simply too cheap. Tracey doesn’t think it’s much of a gamble to add CZR at this level, especially since the recent legalization of sports betting is likely to drive revenue in the coming quarters. The editor added the name on Tuesday with a 10% allocation. Read the full write-up for more.

Technology Innovators: The satellite space is just heating up and Brian Bolan found a company that's still under the radar. Just this morning, EchoStar (SATS) reported a solid quarter with earnings that beat the Zacks Consensus Estimate and revenue that was up year over year. The editor thinks SATS is now set to move back into the $50 to $52 range soon. Read the complete commentary for more specifics on this new addition.

TAZR Trader: The portfolio picked up Intellia Therapeutics back in May and sold it for a double-digit return late last month. Kevin is hoping for more of the same with today’s addition of genome editing company Editas Medicine (EDIT), which just dropped to its lowest market cap since early January. It looks like the market is unfairly punishing the stock for a delayed IND filing for its eye treatment EDIT-101. However, the editor sees only the amazing potential in the CRISPR space and not the day-to-day volatility. He likes EDIT’s partnership with Allergan for EDIT-101 and the treatment’s possibilities moving forward. Therefore, he bought EDIT on Tuesday with a 5% allocation. Read the full write-up for a lot more.

Stocks Under $10: Have you ever heard of Harvard Bioscience (HBIO)? Brian Bolan calls this medical devices maker an “out of sight, out of mind” type of company because its customers are basically all commercial enterprises and drug manufacturers. But you know about it now because the editor added it on Tuesday in the wake of a solid earnings report with a positive surprise of 16%. The stock is a Zacks Rank #2 (Buy) thanks to rising earnings estimates and has a Zacks Style Score of “A” for Growth. Get more specifics on this new buy in the full write-up.

Zacks Short List: This week’s adjustment included five swaps and a double-digit winner. The short-covered names that left the portfolio were:

• LiveNation Entertainment (LYV, +18.3%)
• Tencent Holdings (TCHEY)
• Schlumberger (SLB)
• Zayo Group Holding (ZAYO)
• National Oilwell (NOV)

The new buys that replaced these names are:

• TAL Education (TAL)
• World Wrestling Entertainment (WWE)
• BioMarin (BMRN)
• Ferrari NV (RACE)
• Teradata Corp (TDC)

Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Have a Great Evening,
Jim Giaquinto

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