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Netflix Helps NASDAQ, S&P To New Records

Published 01/23/2018, 09:15 PM
Updated 07/09/2023, 06:31 AM

The Dow took a tiny break on Tuesday, but the NASDAQ and S&P continued their record-setting ways. Earnings season is in full swing and there’s no threat of a government shutdown (for now) to avert the market’s attention. As expected, Netflix (NASDAQ:NFLX) was a big winner in the session with a gain of practically 10% after its strong quarterly results and impressive rise in subscribers.

The streaming service’s strong performance helped secure a couple of new all-time highs. The NASDAQ jumped 0.71% to 7460.3 and the S&P rose 0.22% to 2839.1. However, the Dow waffled between gains and losses all day, and finally settled on a 0.01% decline to 26,210.8.

It was a busy day for the portfolios as Insider Trader, TAZR Trader and Stocks Under $10 all added stocks. Meanwhile, Healthcare Innovators cashed in two double digit winners that recently received big buyout offers. Finally, Short List swapped out four positions.

Today's Portfolio Highlights:

Healthcare Innovators: After yesterday’s “Magnificent Merger Monday” in which TWO portfolio positions were offered “fat” buyouts, we knew that Kevin was on the verge of cashing in some enormous profits. Today was the day! The editor sold Juno Therapeutics (JUNO) for an approximately 98% return in a little over a month and also got out of Bioverativ (BIVV) for a gain of more than 75% in about 5 months. Kevin is currently researching their replacements.

Insider Trader: When a company pre-reports far in advance of its scheduled quarterly release, its usually for really good or really bad reasons. For Dave & Buster’s Entertainment (PLAY), it was the latter case as the restaurant and entertainment company announced a more than 5% plunge in same-store sales. Shares dropped 20% at one point on the news, but it also led to big buys from a pair of directors. Tracey sees this as a classic case of a large selloff that makes shares much more attractive, especially for a company like PLAY that is rolling out several new initiatives. The editor added this stock on Tuesday. Read the full write-up for a lot more on this new addition.

TAZR Trader: Kevin finally showed his hand Tuesday on a high-flying tech name he had in his sights: Square (NYSE:SQ). The Zacks Rank #2 (Buy) financial and marketing services company is richly-valued but must be seen for its "platform potential" and strong growth. In other words, normal valuation metrics don’t provide the best visibility for the future in a situation like this. Kevin added SQ with a 7% allocation and plans to buy more if it slips below $40. Get all the specifics on this new addition in the complete commentary.

Stocks Under $10: Bitcoin and other cryptocurrencies have sold off of late, but Brian Bolan sees long-term potential in this space. With that in mind, the editor bought GAIN Capital (GCAP) on Tuesday, which runs an exchange for cryptocurrencies that is very popular in some Asian countries. He is well aware that this is a riskier play and notes that it may end up being a quick trade if there’s a significant increase in price. Read the full write-up for more specifics on this latest addition.

Zacks Short List: The portfolio replaced four positions in this week’s adjustment. The short-covered stocks that left the portfolio include:

• Akamai Tech (AKAM, +1%)
• Murphy Oil (NYSE:MUR)
• Schlumberger Ltd. (SLB)
• Liberty Global (NASDAQ:LBTYA)

The new buys that replaced these names are:

• Blackhawk Network (HAWK)
• Live Nation Entertainment (LYV)
• PTC Inc. (PTC)
• Vertex Pharma (VRTX)

Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

All the Best,
Jim Giaquinto

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