Today's session didn’t have the flurry of excitement that we often see in the final week of trading, but stocks did move back into positive territory with one of the major indices closing at a new high.
That history maker was the Dow, which improved 0.24% (or about 74 points) to a new record of 30,409.56. That’s a little more than five points higher than its last closing high on Monday.
Meanwhile, the NASDAQ was up 0.15% (or just under 20 points) to 12,870 and the S&P advanced 0.13% to 3732.04.
These indices all started the week in record territory, but took a step back yesterday amid end-of-the-year positioning and low volume.
It may not feel like we’re having much of a “Santa Claus Rally” this year, especially considering the rather bland results of the past two days.
However, stocks are solidly higher since Christmas Eve, which is the start of this seven-day period that encompasses the final five sessions of the old year and the first two of the new.
We’re not at the historical average advance of about 1.3% just yet, but there are still three trading days to go.
But is anybody that concerned about Santa this year? It’s hard to be too nervous when the NASDAQ is going to surge more than 40% in 2020. And the S&P will be up double digits too with the Dow higher by more than 6%. Not bad for a year with an unprecedented pandemic that shut down large parts of the economy.
Some folks say that the market’s performance for these seven days provides a sign for how the whole year will go. But this time, 2021 will probably have a lot more to do with the effectiveness of the vaccine rollout and the subsequent economic recovery.
Speaking of vaccines, we got more good news today when the AstraZeneca/University of Oxford coronavirus vaccine was authorized for emergency use in the U.K., which was the area where that new strain was recently discovered.
One more full trading day left for 2020. The major indices all jumped by approximately 1% last January 2, which was the first trading day of this year and weeks before we ever heard of covid.
That would be a great way to end the year as well!
Today's Portfolio Highlights:
Insider Trader: Banks will be big beneficiaries of a 2021 recovery, so it’s not a surprise that many insiders are buying in this space. Case in point, a long-time director at United Bankshares (NASDAQ:UBSI) bought FIVE times this month. UBSI is a Zacks Rank #2 (Buy) mid-cap regional bank that also has a “juicy” dividend yielding 4.4%. Tracey added this name on Wednesday with a 10% allocation. But that’s not all. The editor also bought Jack Henry (JKHY) today with the same allocation. This large-cap technology solutions company specializes in payment processing services for financial services companies. Last week, a director stepped in with a couple big buys. Read the full write-up for specifics on both of these moves and find out why directors send a powerful signal when they buy shares of their own companies.
Surprise Trader: The past two quarters have included double-digit earnings surprises for Acuity Brands (NYSE:AYI), which has Dave feeling pretty good about the next report coming before the bell on Thursday, January 7. This Zacks Rank #2 (Buy) lighting fixtures company has a positive Earnings ESP of 3.18% for the upcoming quarter. The editor added AYI on Wednesday with a 12.5% allocation, while also selling Winnebago (WGO) for a 7.3% return in less than three weeks. Learn more about today’s action in the full write-up.
Healthcare Innovators: The BLA (Biologics License Application) for NexoBrid was one of the reasons why Kevin added Vericel (NASDAQ:VCEL) back on July 1. Six months later, that treatment for severe thermal burns is expected to be approved by the FDA in 2021, which helped send shares of VCEL past all analyst targets. The editor expected this stock to breakout above $15 when he picked it up… and today its worth double that. It was time to cash out this innovative cell therapy company that’s focused on fixing cartilage defects and severe burns. VCEL was sold on Wednesday for an impressive 113.6% return.
Technology Innovators: When Brian added Veeco Instruments (NASDAQ:VECO) back on November 5, the company was a Zacks Rank #2 (Buy) with 13 straight quarters of positive surprises. Well, that streak is still intact, but unfortunately the stock has slipped to a Zacks Rank #4 (Sell). The editor decided to sell VECO on Wednesday to secure a 19.9% return. He also sold FuboTV (FUBO) since the stock has “fallen apart”. Read the full write-up for more.
TAZR Trader: Sales projections for Moderna (NASDAQ:MRNA) have been all over the place, which is opening opportunities for investors. Kevin has been waiting to get back into the name and today he added a “starter” position of 5%. The editor explained his rationale for owning this company in his recent article/video titled Moderna Vaccine: The Power of MRNA Technology. Make sure to check it out.
Have a Great Evening,
Jim Giaquinto
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