It’s about time the Dow had something to brag about! The other guys have been setting new records all week (including today), but now this index can boast of being positive for 2020.
The Dow gained 0.57% (or about 161 points) on Friday to finish at 28,653.87. That puts it less than 900 points from a new high… and we know how quickly this market (and this index for that matter) can make up lost ground.
And the highs just keep on coming for the other indices. The S&P climbed 0.67% to 3508.01. The index made history each day this week. In fact, its record-breaking winning streak is now 6 days.
Can you handle another milestone? This was the first close above 3500 ever.
The NASDAQ took a break yesterday from all the fun, but was back at it on Friday. It rose 0.60% (or around 70 points) to a new high of 11,695.63.
It was a great end to a fabulous week, which saw the NASDAQ rise 3.4%, the S&P improve 3.3% and the Dow advance 2.6%.
The market has been enjoying good news on two important fronts lately: the Fed and the fight against the coronavirus.
Yesterday, Chair Jerome Powell let us know that these historically low rates will probably be around even longer than we thought… and we already expecting a nice long stay down here.
Basically, they’re going to let inflation move moderately above 2% for “some time” before making any moves.
Recent days have also seen good news on a vaccine candidate from Moderna (NASDAQ:MRNA) and a coronavirus test from Abbott Labs (NYSE:ABT). And this all comes at a time when cases have moderated.
August is going to be the market’s fifth straight month of gains! Actually, its going to be the best monthly performance since April, when the market bounced back from the initial shock of the pandemic shutdowns.
The NASDAQ and the Dow go into the final day of August on Monday with advances of more than 8% each. And the S&P is up approximately 7.2%.
Today's Portfolio Highlights:
Value Investor: The housing market is one the hottest areas of the economy right now, so Tracey added a name on Friday that serves the space. She picked up American Woodmark (NASDAQ:AMWD), which is one of the largest kitchen cabinet companies in North America. It’s two business segments are homebuilders and home remodeling businesses. Earlier this week, the company reported $1.66 per share for its fiscal first quarter, topping the Zacks Consensus Estimate by 7.1%. Sales were down 8.7%, but that’s better than expected given a 2-week disruption in Mexico. In addition to solid value characteristics, AMWD has soared nearly 36% in the past three months though is still down 15.7% year to date, so there’s plenty of running room here. And rising earnings estimates have made the stock a Zacks Rank #1 (Strong Buy). Read the complete commentary for a lot more on this new buy.
Counterstrike: Usually, Jeremy waits for a nice, fat pullback to pick up stocks before their next turn higher. However, this market isn’t cooperating as the epic runup continues. Therefore, he added Dicks Sporting Goods (DKS) on Friday with a small 4% allocation since the Zacks Rank #1 (Strong Buy) hasn’t declined that much. The portfolio will add more on any further weakness. DKS recently reported a “blowout quarter” with an earnings surprise of 158% and same-store sales growth of 20.7%. Meanwhile, this ever-increasing market is making it near impossible to short anything, so the editor also covered Chewy (NYSE:CHWY) and ProShares UltraPro Short QQQ (SQQQ) today. Read the full write-up for more.
TAZR Trader: Shares of Quidel (NASDAQ:QDEL) have gotten shellacked in recent days, but all Kevin can see is a bargain price for an innovative medical diagnostics innovator. The company has several covid tests that have been fast-tracked by the FDA, so pullbacks are opportunities in this stock while we still have to deal with this pandemic. In its recent quarter, QDEL beat the Zacks Consensus Estimate by 66%. And full-year 2020 projections are calling for earnings growth of more than 250% and revenue growth over 100%. The editor added the stock on Friday with a 5% allocation and would add more on any dips to approximately $140. Read the full write-up for tons more info on QDEL, including bullet points on the company’s potential and statements from management after a recent conference.
Have a Great Weekend!
Jim Giaquinto
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