Investors may as well have been camping out on Black Friday too, waiting for the market to open just like countless shoppers at stores across the country. Despite the expected low volume, there was no let-up to the post-election rally on the day after Thanksgiving. The major indices all hit record highs again and completed a third straight week of gains.
On Friday, the S&P was up 0.39% to 2213.4, marking a weekly advance of 1.4%. The Dow increased 0.36% to 19,152.1 and the NASDAQ was up 0.34% to 5398.9; each of these indices added 1.5% for the week. The Russell 2000 kept the good times going as well, rising 0.38% to 1347.2. However, oil moved sharply lower in the session on new uncertainty of an output deal since Saudi Arabia does not plan to attend talks with non-OPEC producers next week.
Understandably, the portfolios were quiet today. However, there was a buy in Income Investor that was set up on Wednesday. Learn about it in the highlights section below, along with some analysis:
Today's Portfolio Highlights:
• The acquisition of KLA-Tencor (NASDAQ:KLAC) by Lam Research (NASDAQ:LRCX) was a no-go…but that’s all right! Analysts feel pretty good about KLAC as a stand-alone company, which was on full display in the recent quarterly report. It beat on both the top and bottom lines, while also increasing the quarterly dividend. KLAC supplies process control and yield management solutions to the semiconductor industry, which means it’s part of a space in the top 5%(!) of the Zacks Industry Rank. Neena made this Zacks Rank #2 (Buy) stock the newest addition to Income Investor. Learn more about today’s moves in the complete commentary.
• "The post-election rally continues. And it looks like there's a lot more to go. With analysts speculating that Trump's economic policies could send GDP expectations to 4% and even 5%, the market could be getting ready to have one of its best year's next year of the last 7 1/2 year bull market.
"In other news, the PMI Services Flash report inched a bit lower to 54.7 vs. last month's pace of 54.8. But, holding steady after last month's sharp 3 point jump, which put it at a 12 month high, is pretty impressive.
"After a whole litany of solid reports this week, today's report just adds to the narrative of a strong economy. And that, of course, is bullish for the market," said Kevin in Options Trader.
• "It’s been a truly amazing run since the election and my 2240 targets are well within reach. We might start to see some euphoria soon, as the move over 2200 will bring in a lot of new money that’s been sitting on the sidelines.
"I would much prefer a pullback, but for now it looks like we will continue with the low volume grind higher into Christmas. OPEC should spark some volatility in energy markets next week after their meeting on the 30th. Expect very large moves in oil stocks and of course crude oil.
"Crude was down almost 2% today as the Saudi’s backed out of the Non-OPEC meeting. These headlines are a mess, but when a final decision is made, we will see a violent oil move. The direction chosen will dictate the price of oil for the next three to six months.
"My feeling is that there will be an agreement, but these OPEC guys are a tricky bunch. All involved are sovereign nations and will decide what is best for their own nation’s interest," said Jeremy in Zacks Counterstrike.
• "Many are calling this massive rally a "Trump Rally" in part because most of it has occurred post-election. There's no doubt the election has given us certainty as to the direction over the next several months.
"Wall Street hates uncertainty and it's now clear many traders and investors were on the sidelines waiting for the results. But something else is also going on. Frankly, the US economy has been heating up for weeks. So we get a double dose of optimism, with a growing economy and nearly full employment with a possible stimulus and tax cut program coming soon.
"That's the best of all worlds.
"When the pull back does come, many of the insiders may look at it as a buying opportunity.
"I'm still bullish on stocks, especially the small caps, heading into the end of the year. This rally is for real. We're staying 100% invested to ride the momentum," said Tracey in Insider Trader.
Have a Great Weekend,
Jim Giaquinto
Recommendations from Zacks' Private Portfolios:
Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' exclusive recommendation services. If you would like to follow the Buy and Sell signals in real time, we've made a special arrangement for you.
Starting today you can see all the recommendations from all of Zacks' portfolios, from value stocks and momentum trades to "insider buying" and positive earnings surprises (which we've predicted with 80%+ accuracy), you can gain unrestricted access to our best ideas for the next month.
Click here to find out more >>
Zacks Investment Research