The month of November picked up on Monday right where the month of October left off… with the three major indices putting in a new round of all-time highs! But let’s not get ahead of ourselves. We’re beginning a busy and eventful week that includes tons more earnings reports, a deluge of economic data and even a Fed meeting.
The NASDAQ rose 0.63% (or about 97 points) today to 15,595.92, while the Dow was up 0.26% (or around 94 points) to 35,913.84. The S&P increased 0.18% to 4613.67. Since these indices were all at record highs at the closing bell on Friday, they continued making history on Monday.
Stocks are returning from a fantastic October, which saw the S&P rise 6.9% for its best monthly performance of 2021. Meanwhile, the NASDAQ was up 7.3% (also its best of the year) and the Dow gained 5.8%.
Last week was all about the big tech earnings, which turned out to be mixed especially after high-profile misses from Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) on Thursday. This week will be more varied… and perhaps even busier if you can imagine that.
Of course, earnings season continues as we’re only a little more than halfway done. There’s still well over 1,000 reports coming this week! Despite the aforementioned big tech misses, the season has been impressive so far and helped to calm nervous investors for the moment.
The first week of the month means we’re set for a tidal wave of data, which began today with the ISM Manufacturing Index coming to 60.8 in October. That was better than expectations of 60.3 but a bit below September’s 61.1. Nonetheless, it was still well above the 50 mark that suggests expansion.
The big data of the week is saved for last, though, when the Government Employment Situation is released on Friday.
As if earnings and the monthly jobs report weren’t enough, we’ll also be getting a two-day Fed meeting this week on Tuesday and Wednesday. Most people now expect Chair Jerome Powell & Friends to finally announce plans to scale back the $120 billion in monthly asset purchases. But investors will also be listening intently for the Committee’s views on rising inflation and the supply chain challenges.
So buckle up! It’s going to be another crazy week in the market…
Today's Portfolio Highlights:
Headline Trader: It’s time this portfolio gets some exposure to the skyrocketing cryptocurrency market, and Dan thinks that Riot Blockchain (NASDAQ:RIOT) provides the perfect gateway into this exciting space. The company uses its expertise and network to build and support blockchain technology companies. The recent acquisition of Whinestone US makes RIOT one of the world’s leading public bitcoin miners, which gives this service exposure to a cryptocurrency that soared 125% in just three months. Shares of RIOT soared nearly 400% at the beginning of 2021, but its now down more than 65% from those highs. Therefore, the portfolio is getting a company with tons of potential at a sizable discount, which is extremely rare in a space with such a stiff wind at its back. Read the full write-up for a lot more on this new addition. By the way, this portfolio had a top performer today as SoFi Technologies (SOFI) jumped 12.6%.
Healthcare Innovators: A software addition would provide some welcomed diversification for this biotech-heavy portfolio, so Kevin added UiPath (PATH) on Monday. The company provides software for robotic process automation in several industries. Of course, the editor is most interested in its applications for the healthcare field, where its services for medical records and diagnostic processes could actually help doctors increase their time with patients. Shares have come back to earth after surging earlier this year in the usual IPO turbulence, and now Kevin thinks that the lows are probably in for PATH. The stock was added between $50 and $53. Read the full write-up for more on this new addition.
Commodity Innovators: Coal has experienced upward pricing pressure of late, so Jeremy thought this was a good time to get some exposure for the portfolio. The editor kicked off a new week by adding Consol Energy (CEIX), a Zacks Rank #1 (Strong Buy) miner, preparer and marketer of thermal coal. Despite rising earnings estimates (as evidenced by its high Zacks Rank), shares have pulled back over 20% to the 50-day MA. The editor wants to get involved before the company’s upcoming earnings report. CEIX is expected to be a mid-term holding. By the way, AGCO (AGCO) hasn’t done much since being added in late July, so Jeremy used today’s rally as an excuse to get out of this name and look elsewhere. Read the full write-up for more.
Black Box Trader: The portfolio swapped out four names in this week's adjustment. The stocks that were sold on Monday included:
• DICK'S Sporting Goods (DKS, +5.2%)
• Archer Daniels Midland (NYSE:ADM)
• Valero Energy (NYSE:VLO)
• AutoNation (NYSE:AN)
The new buys that filled these open spots were:
• C.H. Robinson Worldwide (CHRW)
• Century Aluminum (NASDAQ:CENX)
• Nucor (NYSE:NUE)
• PBF Energy (NYSE:PBF)
Read the Black Box Trader’s Guide to learn more about this computer-driven service.
All the Best,
Jim Giaquinto
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