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Tech Breaks S&P Out of Slump

Jim Giaquinto

With the most recent rate hike now in the past, stocks enjoyed a positive session on Thursday with tech leading the way.

The NASDAQ is the only major index going into Friday’s session with gains for the week. It is up nearly 0.7% through Thursday after today’s advance of 0.65% to 8041.97. While its counterparts were making new records as recently as last week, the NASDAQ was unable to keep pace as tech came under pressure. However, all the FANGs were on positive ground today.

The S&P broke a four-day losing streak with an increase of 0.28% to 2914, while the Dow ended its own slide by rising 0.21% to 26,439.93. Since setting new records a week ago, these indices have been sluggish amid cancelled trade talks with China and the usual skittishness during a Fed meeting.

An upgrade from J.P. Morgan put a charge into Apple stock as shares of the iPhone maker jumped 2.06%. Also, Amazon received some bullishness from Stifel and advanced 1.93%. The rest of the FANGs followed suit to the upside, including Alphabet (+1.2%), Facebook (+1.13%) and Netflix (+0.75%). It felt just like the good old days (from a couple weeks ago) with these names leading the market higher.

What is likely to be the big story tomorrow didn’t come out until late on Thursday…and no it’s not about trade or anything in Washington. It’s Elon Musk, of course! The SEC has sued the Tesla founder for fraud stemming from that now legendary tweet from early August boasting of “funding secured” for taking the company private at $420. The SEC says the tweet was “false and misleading”. Mr. Musk quickly responded by calling the SEC's decision an “unjustified action”. As of this writing, shares of Tesla are down approximately 12% after hours.


Today's Portfolio Highlights:

Momentum Trader: Last month was great for Curo Group (CURO) as it jumped to $32 from $25. But here in September, this consumer finance company has taken a breather and consolidated in the lower $30s. Dave notes that the last time it consolidated like this, it was followed by another sharp move upward. The editor wants to get in before that happens, so he added CURO on Thursday with a 12.5% allocation. Read more about this new buy in the complete commentary.

Technology Innovators: Losing 11% on Rapid7 (RPD) back in July has left a bad taste in Brian Bolan’s mouth, especially since it could have been a profit if he waited a bit longer. The editor plans to rectify this situation by picking up the cybersecurity name again on Thursday. The stock pulled back from $40 recently, and now Brian is buying again with expectations of a 10%+ gain moving forward, especially if tensions can ease a bit on rates, the economy and tariffs. Read the full write-up for more.

Income Investor: The hunt for “juicier” yields has led Ryan to telecom giant Verizon (VZ), which is almost ready to unveil the world’s first 5G network. The company consistently increases its dividend on an annual basis and currently represents a full year yield of about 4.5%. But the editor considers VZ to be a growth and income play, as analysts are calling for earnings growth of nearly 25% for the current fiscal year. Furthermore, the company has been reducing its long-term debt burden and is currently cheaper than its historical average. Learn a lot more about VZ in the full write-up.

Home Run Investor: Champions Oncology (CSBR) is bucking the trend for most healthcare/biotech stocks. First of all, the stock met expectations in its inaugural report after going public, which Brian Bolan called “sort of amazing”. But he was even more impressed with the company guiding for "sustained profitability” after a 400% surprise in the most recent report. These are very impressive events for such a “young” biotech. The editor was looking for some diversification, so he added CSBR on Thursday. Read the complete commentary for more.

All the Best,
Jim Giaquinto

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