The market’s streak of back-to-back weekly losses came to an end with gusto today. Friday’s session may have been rather quiet ahead of a three-day weekend, but it couldn’t derail a week’s worth of positive performances that actually began last Thursday (May 18). As the closing bell rang today, the S&P was up 1.4% for the week, while the Dow advanced 1.3% and the NASDAQ jumped 2.1%.
For today’s session, the S&P didn’t move very much, but it’s 0.03% advance was just enough to complete a seventh straight positive day and finish at a new record of 2415.8. The NASDAQ is right there with its counterpart as it too continued its green streak and reached a new record of 6210.2 after an advance of 0.08%. However, the Dow was odd index out today, but only by the slimmest of margins. It was down 0.01% to 21080.3.
In the portfolios, Zacks Counterstrike finally made some buys after thinking about it all week. The portfolio added three names today. Other additions on Friday came from Healthcare Innovators and Income Investor. The highlights section below has specifics on these moves, along with some analysis from Momentum Trader.
Today's Portfolio Highlights:
Zacks Counterstrike: Jeremy has been looking to add for a while now, but didn’t trust the recent rally enough to pull the trigger. But the market’s impressive performance since last week’s selloff changed his mind, and today he added three Zacks Rank #1s that the HFTs have yanked lower despite a strong quarter. Give them a look below:
• The editor decided that Potash Corp. (POT) was a good way to play the agriculture space as planting season arrives. Shares jumped after the company reported an 80% positive surprise in its late April report, but have since pulled back. He added POT with a 12% allocation as he expects it to move higher again.
• All the cool kids are drinking craft beers these days, which was proved when Craft Brew Alliance (BREW) reported a positive surprise of 50% earlier this month. The stock moved higher after the report but is now hanging around $16. It was added to the portfolio today with a 14% allocation and expectations of moving as high as $20 eventually.
• Same kind of story for Quaker Chemical (KWR). The company surprised to the upside by 12% and then pulled back after an initial move higher. Jeremy added it with a 14% allocation ahead of the next leg higher. But this time he strongly suggests that you use limit orders, since this is a very low volume stock.
The full commentary has a lot more on all these moves.
Healthcare Innovators: One of the most exciting areas of medical research right now is Immuno-Oncology, which uses the body’s own immune system to attack malignant cancer cells. Kevin has been looking to get into this space for a while, and today he picked up Incyte (INCY) after reading some encouraging analyst reviews on its data. The company is closest to bringing an IDO inhibitor to market, which has caught the attention of bigger leaders in the space like Bristol-Myers and Merck (NYSE:MRK). INCY is now a key R&D partner of these giants. By the way, the editor is so high on this area that he also bought NewLink Genetics (NLNK), which is a younger, less accomplished version of INCY. Read a lot more about these moves in the full write up.
Income Investor: The large, multinational companies are having a great year, as they continue to outperform with surging profits quarter after quarter. Its even better if they have a lot of overseas exposure to take advantage of an improving global economy. Neena wants to be part of this lucrative space, so she added iShares Global ETF (IOO) on Friday. The fund invests about 60% of its assets in the U.S. and the rest in foreign companies. It also has a decent dividend yield of 2.5%. Read the full writeup for more.
Momentum Trader: "As I figured, the market quietly went off into the holiday, virtually unchanged at the highs. The action today capped quiet but positive week for the market as equities rebounded nicely from the spike in volatility last week. The President will finish up his foreign trip and should be back next week to further his tax reform and health care agendas.
"It seems that the market is increasingly disinterested in what’s happening on Capitol Hill. The focus has shifted towards earnings and the Fed. We’re on track for a June hike and that’s settled down several stomachs.
"Sleepy end to the week ahead of the holiday weekend. This solemn holiday serves as the unofficial kickoff to summer but don’t forget what it really stands for. We’re not getting a day off to cook burgers and dogs on grills, we get a day of remembrance for the brave men and women who fought and died for our freedom." -- Dave Bartosiak
Have a Great Memorial Day Weekend!
Jim Giaquinto
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