Programming Note: Sheraz Mian, the Director of Research here at Zacks, will be part of The Opening Bell on WGN Radio tomorrow morning at 5:38 am (CT). He'll be previewing the Q2 earnings season.
Stocks dropped sharply in the final minutes of trading on Monday, but the major indices still started a busy week on the plus side.
A contentious G7 summit over the weekend and the President’s upcoming meeting with North Korea’s Kim Jong-un didn’t have much of an impact today. Investors don’t expect any breakthroughs from the Singapore event that begins just a few hours from this writing.
The Fed meeting on Wednesday, though, could possibility be the biggest market mover this week. Everybody is expecting the second rate hike of the year, but the committee’s language will again take centerstage as the market tries to infer the likelihood of an extra hike later this year.
The NASDAQ finished Monday with a 0.19% advance to 7659.9 and the S&P rose 0.11% to 2782. While all three of the major indices experienced a late-day plunge, the Dow came closest to a negative session. However, it managed a 0.02% increase to 25,322.3.
"I think the market is beginning to realize what I’ve been saying all along. The trade war talk is posturing. It’s the art of the deal. You open strong, you relent and eventually get a much better deal than you originally had. I’m sure this is a gross oversimplification of the geopolitical landscape. Bottom line is, the VIX is telling me not to worry so I’m not going to worry," said Dave Bartosiak, editor of Momentum Trader, Surprise Trader and Blockchain Innovators.
In the portfolios, Black Box Trader cashed in five profitable returns, including a couple of double-digit winners. It replaced those names with five new buys. Momentum Trader also made a swap today, selling one name for a profit and buying a biopharma company that looks set for another leg higher. Check the highlights section below for specifics on these moves and more.
Today's Portfolio Highlights:
Momentum Trader: The portfolio sold the stalled MRC Global (MRC) position for a 5.2% return, and then immediately used the proceeds to buy ChemoCentryx (CCXI). This Zacks Rank #1 (Strong Buy) biopharma company has been making a series of higher lows since December that has moved its share price to more than $11 from $6 in that time. Dave thinks it can move to the next level of resistance at more than $13…so the editor bought CCXI on Monday. Read the full write-up for more.
Black Box Trader: All five stocks sold from the portfolio today were positive...and two of them were double-digit winners. The positions that left the service include:
• Turtle Beach (HEAR, +24.6%)
• Tenet Healthcare (THC, +20.7%)
• Envision Healthcare (EVHC, +6.1%)
• Chemours Co (CC, +2.3%)
• Quanta Services (PWR, +1.1%)
The new buys that replaced these names are:
• Aflac Inc. (AFL)
• Guess Inc. (GES)
• HD Supply (HDS)
• International Paper (IP)
• Terex Corp (TEX)
Read the Black Box Trader’s Guide to learn more about this computer-driven service designed to take the emotion out of investing.
Zacks Confidential: When most people think of technology stocks, it’s names like Facebook, Apple or Google. But you may not even be aware of one of the hottest spaces in tech right now…software! More specifically, corporate software. Fortunately, Brian Bolan knows all about this “out of sight, out of mind” space and has some ideas on how you can profit from it. Kevin asked Brian to outline some of the best ideas in this area. Read his detailed article and get a couple of potential stock plays: The Summer’s Best Software Stocks.
Insider Trader: "It was a wait-and-see kind of day as all eyes are on Singapore for the North Korean summit.
"Stocks tried to rally but gave up some of the gains into the close. Still, the bulls remain in charge so the overall tone is bullish.
"The summit is actually happening tonight and then, apparently, both Kim Jong Un and President Trump will depart quickly from Singapore. This won't be dragged out for days.
"I believe the global markets will respond favorably to whatever happens as this is just the first of what, hopefully, will be several meetings." -- Tracey Ryniec
Recommendations from Zacks' Private Portfolios:
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