Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

S&P Reaches Record Close in Another Low Volume Session

By Zacks Investment ResearchStock MarketsApr 07, 2021 09:15PM ET
S&P Reaches Record Close in Another Low Volume Session
By Zacks Investment Research   |  Apr 07, 2021 09:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

SPECIAL ALERT: Remember, the April episode of the Zacks Ultimate Strategy Session is now available for viewing! Don’t miss your chance to hear:

▪ Kevin Cook and David Borun Agree to Disagree on America's National Debt: Are we headed for a government-led financial crisis?
▪ Kevin Matras covers questions ranging from when to sell a Zacks Rank #1 (Strong Buy) stock to the differences between our Investor Services, Trading Services and Innovators Services, and the best ideas to follow in Zacks Mailbag
▪ Kevin Cook and Daniel Laboe choose one portfolio to give feedback for improvement
▪ Market conditions from both fundamental and technical views
▪ The full list of top-performing stocks over the past 30 days
▪ New stocks added to the Zacks Ultimate portfolio
▪ And much more

Simply log on to and view the April episode here. And please let us know what you think of these monthly episodes. Email all feedback to

We saw another low volume session on Wednesday, but this time one of the major indices gained enough to close at a new high. And the Fed let us know that this super accommodative monetary policy will be around for a while longer (as was widely expected).

The S&P gained a mighty six points today, which was enough to close at a new high for the third time in the past four days. It was up 0.15% to 4079.95. The Dow also closed positively by 0.05% (or about 16 points) to 33,446.26, but it’s still about 80 points shy of the record set on Monday.

The NASDAQ now has back-to-back losing sessions after slipping 0.07% (or just under 10 points) to 13,688.84. Interestingly, the FAANGs were all solidly higher on the day and the 10-year Treasury yield remained below 1.7%.

Stocks really hit the ground running this week with the major indices each jumping more than 1% on Monday. Everybody loved the Government Employment Situation report on Friday, which crushed expectations by nearly 250K.

However, investors have been yawning since then. The big economic data has been released and we’re still about a week away from the start of earnings season, which is leaving us with a rather slow trade now that the market has relaxed a bit when it comes to covid and the vaccine rollout.

The market should also be encouraged by the Fed’s plans moving forward, which pretty much boil down to “more of the same”. According to the minutes from the last meeting, the economy remains far from the inflation and employment goals that the Committee would need to see before tightening things up. Therefore, the Fed will be taking things easy for a while longer.

The market didn’t have much of a reaction to the minutes since there were no surprises. Plus, many investors are still skeptical that this accommodative policy will remain as long as currently expected, especially if the recovery continues to gain steam.

Today's Portfolio Highlights:

Home Run Investor: The entire shipping sector is enjoying big estimate revisions to the upside these days, so Brian gained some exposure on Wednesday by adding Matson (NYSE:MATX). The company operates as an ocean transportation and logistics company. MATX has beaten the Zacks Consensus Estimate for the past three quarters in a row, while rising earnings estimates have made the stock a Zacks Rank #1 (Strong Buy). Furthermore, the valuation looks good and improving margins suggests that earnings are poised to move much higher from here. The editor thinks MATX “could easily see a 10-point run in the coming weeks”. Read the full write-up for a lot more on this new addition.

Surprise Trader: Not every company that reports in the early days of earnings season is from the financials space. For example, Badger Meter (NYSE:BMI) goes to the plate before the bell on Thursday, April 15. This company provides flow measurement, control and communications solutions for water and gas utilities, municipalities and industrial customers worldwide. That’s quite a different business than banking! BMI has a positive Earnings ESP heading into that report, so Dave added the stock on Wednesday with a 12.5% allocation. Meanwhile, the editor needs to free up some space with earnings season right around the corner, so he sold Barings BDC (NYSE:BBDC) and Winnebago (WGO) today after moving sideways since being added. See the complete commentary for more on today’s moves.

ETF Investor: Transportation ETFs have been outperforming lately since the space will “benefit immensely” from the end of this pandemic. Therefore, Neena made another re-opening trade on Wednesday by adding the SPDR S&P Transportation ETF (XTN). This equal-weighted fund has exposure to trucking (33%), airlines (26%) and air freight & logistics (23%). It has over $740 million in assets and is the cheapest fund in the space. To make room for the addition of XTN, the editor sold iShares Global 100 ETF (IOO) for an approximately 60% return in more than three years. Learn more about today’s action in the complete commentary.

Counterstrike: Our pets have been constant companions during this pandemic shutdown, so its not much of a surprise that online pet retailer Chewy (NYSE:CHWY) recently reported a “phenomenal” quarter. It beat the Zacks Consensus Estimate by 155%! The stock soared after the report, but was subsequently sold aggressively. That’s exactly what Jeremy is looking for in this portfolio. On Wednesday, he bought CHWY with a 4% allocation in preparation for the bounce back. Read the full write-up for more specifics on this addition, including the editor’s two possible scenarios for adding more shares moving forward.

Marijuana Innovators: We’re just one day away from the quarterly report from Constellation Brands (NYSE:STZ), but Dave doesn’t want to hold this beer, wine and spirits name through tomorrow’s earnings announcement. Therefore, he sold STZ on Wednesday for a return of approximately 24% in more than a year. Read the full write-up to learn why the editor doesn’t want to hold this name through the report.

All the Best,
Jim Giaquinto

Recommendations from Zacks' Private Portfolios:

Believe it or not, this article is not available on the website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>

Zacks Investment Research
S&P Reaches Record Close in Another Low Volume Session

Related Articles

Gary S. Morrow
Caterpillar Is Cratering By Gary S. Morrow - Jun 11, 2021 4

Caterpillar (NYSE:CAT) is under heavy pressure as the week comes to an end. On Thursday, shares fell 3.8% with the help of a big bump in volume. This damaging breakdown pierced a...

S&P Reaches Record Close in Another Low Volume Session

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email