Stocks finished higher on Friday thanks to some positive trade comments, but it wasn’t enough to save the major indices’ weekly winning streaks.
The NASDAQ’s seven-week run is over, as are the S&P and Dow winning streaks of six weeks and four weeks, respectively.
After more than a month of mostly positive sentiment, concerns over the Phase 1 deal finally had an impact on stocks in recent days.
On the other hand, it didn’t have a major impact. This was actually a pretty slow week. The market did react to some negative headlines, especially Wednesday’s news report that the trade deal could be postponed to 2020; but there was no significant follow through.
In fact, the major indices just barely lost their winning streaks. The Dow was off 0.5% this week, while the S&P and Dow only slipped by 0.3% and 0.2%, respectively.
These losses pale in comparison to the trade-induced market massacres of the recent past!
And the news on Friday was pretty positive, as President Trump and China leader Xi Jinping both offered encouraging assessments about getting something done.
As a result, the major indices were in the green on Friday. The Dow advanced 0.39% (or about 109 points) to 27,875.62, while the S&P was up 0.22% to 3110.29. The NASDAQ rose 0.16% (or around 13 points) to 8519.88.
We also got some help today from a positive consumer sentiment report for the month, along with some good numbers on manufacturing and services.
This week might have been a little slow, but it’ll feel like warp speed compared to next week. It’s Thanksgiving time! In addition to the actual day off on Thursday, you can bet there won’t be much happening after Tuesday (or maybe even Monday).
However, the indices are so close to another round of all-time highs, there may be enough interest next week to make more history just in time for the turkey!
Today's Portfolio Highlights:
Insider Trader: Despite the stock being “crazy” all year, Tracey decided to add Enphase Energy (ENPH) on Friday. Shares of this microinverters supplier to the solar industry dropped 20% since its last report and has been treading water ever since. Analysts are concerned about increasing competition in this “hot” area. However, just yesterday the CEO and CFO both bought shares of their own company. But what really caught the editor’s attention is that these insiders have a history of buying at much lower levels. Therefore, Tracey thinks this is more than just their attempt to pump some confidence back into shares. She added ENPH on Friday with a 10% allocation, but warns this could be a wild one that doesn’t stay in the portfolio very long. By the way, she also sold United Airlines (UAL) for a 9.1% return in about three months and half of the unpredictable Vera Bradley (VRA) for 6.6% in a little over two months. Read the full write-up for more.
Technology Innovators: It’s pretty rare to see a chart that’s “nothing short of wonderful”, so Brian made sure to add Clarivate Analytics PLC (CCC) on Friday. This Zacks Rank #2 (Buy) is an information services and analytics company. The stock easily topped the Zacks Consensus Estimate in the past two quarters, including by 1300% most recently! And as its Zacks Rank attests, earnings estimates are moving higher… much higher actually. This year has jumped to 50 cents from 23 cents in the past month, while next year’s is up to 68 cents from 38 cents. Read the full write-up for more.
Surprise Trader: Earnings season is pretty much over, but there’s still a few stragglers left to report. Burlington Stores (BURL) is part of the Retail – Discount Stores space, which means its in the Top 3% of the Zacks Industry Rank! It also has a positive Earnings ESP of 0.44% for the quarter coming before the bell on Tuesday, November 26. That EPS target would represent growth of 16.5% year-over-year. Dave added BURL on Friday with a 12.5% allocation and sold Grocery Outlet (GO) for a 1.1% return to make some room. See the complete commentary for more.
Stocks Under $10: When we get that pesky Phase 1 trade deal signed, it will certainly be a big help to a company like American Superconductor Corp. (AMSC). This Zacks Rank #1 (Strong Buy) is a leading energy technologies company. More specifically, it’s a big player in alternative energy, offering grid interconnection solutions and licensed wind energy designs and electrical systems. Brian appreciates that AMSC has beaten the Zacks Consensus Estimate in three of the last four quarters, including a beat of 79% most recently. If the stock could string together a few solid quarters, it could be testing double digits in no time. Read the full write-up for more on this new pick. In other news, Vivint Solar (VSLR) climbed more than 7.7% to give this portfolio the best performer of the day among all ZU services.
Have a Great Weekend,
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