NASDAQ Pulls Away

Here we are in the thick of earnings season, but most of the big reports didn’t happen until after Thursday’s bell. Tech giants Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL) had some great results, while we also heard from Microsoft (NASDAQ:MSFT) and Intel (NASDAQ:INTC). The excitement over these reports was enough to separate the NASDAQ from its counterparts, as the index reached a record high.

The NASDAQ was up 0.39% to 6048.9, while the S&P could only manage a 0.06% advance to 2388.8 and the Dow inched higher 0.03% to 20,981.3. Tomorrow should be interesting as the market will get a chance to react to these tech reports, though the Q1 GDP will also be released on Friday and some are not expecting it to be very pretty.

In the portfolios, the new Healthcare Innovators added two more positions, bringing the stable up to 10 names this week. The editor plans to add between 20-25 in total. There was also a triple-digit winner for Options Trader and a double-digit winner for RTA. The former portfolio also bought today, along with Momentum Trader, Counterstrike and TAZR. Learn all about it below:

Today's Portfolio Highlights:

Healthcare Innovators: The first week of this new service rolls on with two more buys on Thursday. Kevin really likes the recent pullback in Regeneron (REGN) because he believes this approximately $360 company is destined to breakthrough $400 and then some in the long run. The company makes therapies for diseases of the eye, gout and cancers. It reports on May 4.

The other buy is managed care provider Centene (CNC), which has already reported and delivered a strong performance earlier this week. The company has Zacks Style Scores of A across the board, and Kevin believes it will continue to expand into new service areas, acquisitions and healthcare reform initiatives. Read the full write-up for more on these new additions, along with updates on the other 8 stocks that were added this week.

Options Trader: The portfolio’s bull call spread in Mohawk Industries (MHK) has already made more than 95% of its maximum profit potential. Kevin doesn’t think it’s worth holding this spread into the company’s report after the close today, since he could lose most of that gain on a disappointing performance. So he removed the spread on Thursday and banked an impressive 150% profit.

Kevin also bought to open a Sept. 75.00 Call in Centene (CNC), a Zacks Rank #2 managed care provider. Following positive surprises on both the top and bottom lines, the stock looks like its finally ready to breakout to the upside after several years of consolidation. The editor also likes that the stock’s P/S ratio is under 1.0 at 0.28. Learn more in the complete write-up.

Reitmeister Trading Alert: Insperity (NSP) is scheduled to report on Monday, so Steve felt it was wise to sell a few shares of this staffing company since you never know what earnings season will bring. The sale banked a gain of 13.4% and leaves the portfolio with a 6.8% allocation. For the same reason, the editor sold some of Royal Caribbean (RCL) ahead of its report tomorrow for a return of 7.2%. The portfolio still has a 7.1% allocation in the name. Read the full write-up for more on all of today’s moves.

Momentum Trader: After retreating to the 50-day, shares of Ultratech (UTEK) have since broken higher on volume to fresh 52-week highs. That’s exactly what Dave wants to see, so he added UTEK to the portfolio on Thursday with a 12.5% allocation. Also today, the editor got out of his “stale” Scientific Games (SGMS) position after it slipped to a Zacks Rank #3, but the stock still brought a solid gain of 9.7%. Read the full write-up for a lot more on these positions, including a breakdown of UTEK's chart.

Zacks Counterstrike: Shares of Huntsman Corp. (HUN) advanced after the chemical products company reported a strong quarter yesterday morning, which included a positive surprise of 50% and a raised FY17 guidance. But then the HFTs got involved and pulled the stock lower. Jeremy thinks that HUN will get back to Wednesday’s highs and more, so he bought an 8% allocation in the company on Thursday.

And it’s the same idea with toy giant Hasbro (NASDAQ:HAS), which had a 16% positive surprise in its recent quarterly announcement. HFTs may succeed in driving this Zacks Rank #1 beneath $100 in the short run, but the editor believes it will recover to the $106-$110 area within a month. Therefore, he added HAS with an 11% allocation. Get a lot more info on both of these additions in the complete commentary.

TAZR Trader: Kevin was waiting to buy Analog Devices (ADI) under $77. However, this market isn’t going down right now, so the editor decided that under $78 was close enough. He bought ADI on Thursday with a 7% allocation. Learn more in the complete commentary.

All the Best,
Jim Giaquinto