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S&P, Dow Still Positive for September

Jim Giaquinto

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The major indices just finished a second straight week of losses, as the latest trade headline had investors nervous about next month’s U.S. – China meetings.

A strong Friday session could have gotten stocks onto the plus side for the week. The announcement that high-level talks would resume in two weeks was hoped to provide that extra boost into the green.

But that’s not what happened.

Instead, we got reports that the White House is thinking about limiting U.S. investment in China, perhaps even delisting Chinese companies from U.S. exchanges.

This consideration is in the very early stages and may never come to fruition, but this skittish market doesn’t need much to selloff these days.

The NASDAQ took the brunt of this news and plunged 1.13% (or about 91 points) to 7939.63. The S&P was down 0.53% to 2961.79 and the Dow slipped 0.26% (or nearly 71 points) to 26,820.25.

All of the indices started the session in the green before dipping lower. However, they all came off their lows as well.

The most important thing for the market in the short-term is to get to those meetings next month. As long as they’re still happening, then these day-to-day headline-driven moves are just noise.

Earnings season is also coming up in the next few weeks. Investors will be watching to see what kind of an impact the trade conflict and global economic weakness is having on companies.

But first things first. We’ve got one more day of September and of the third quarter on Monday.  

The S&P and Dow go into the final session with gains for the month, which is impressive given how tough this time is for stocks. However, today’s slump has pulled the NASDAQ into the red for the month.  

And then we start the fourth quarter. Let’s hope its better than last year’s!

Today's Portfolio Highlights:

Value Investor: The market is not a big fan of drugstores right now, but Tracey is willing to be patient with industry staple Walgreens Boots Alliance (WBA). Shares are down 21% this year, but it has come off of recent lows. This Zacks Rank #2 (Buy) is “a classic value stock by all measures”, according to the editor. She appreciates WBA’s shareholder-friendly ways, including a dividend that currently yields 3.4%. Through its partnership with Humana, the company continues to roll out medical clinics and new services to compete with CVS/Aetna. Read the full write-up for a lot more on this new addition.

TAZR Trader: Rumors that President Trump may delist Chinese equities has Kevin looking to get even more defensive in this seasonally-weak period for the market. On Friday, he sold Alteryx (AYX) while he can still get a nice 22.9% profit in this data analytics software company. He also sold Elatic (ESTC). And for those of you feeling a little aggressive, the editor thinks this is a good time to add ProShares UltraPro Short QQQ ETF (SQQQ). Read the full write-up for a lot more on today’s news and action.

Have a Great Weekend,
Jim Giaquinto

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