Dow, S&P Have First Back-to-Back Gains in Over a Month

excerpt, News, stream

mrtopstep

You know its been a really difficult time when two consecutive days of gains is such a big story… but that’s the situation we’re in.

So while most people will tell you that we haven't reached the bottom yet, it’s still a relief to see this market add onto yesterday’s sharp gains. 

This positivity is still all about the government’s stimulus package… though it hasn’t even been signed yet! We woke up this morning to news that the White House and Senate had agreed to a $2 Trillion plan. And stocks spent most of the day soaring. 

But you didn’t think it would be that easy, did you? Not when the Congress is  involved. 

Not only does it still have to get through the House, but doubts were surfacing late in the session about the Senate as well.  As a result, stocks sharply pulled back in the final hour, but two of the major indices still finished with solid advances. 

The Dow jumped 2.39% (or nearly 500 points) on Wednesday, while the S&P rose 1.15% to 2475.56. These results added onto yesterday’s surges of 11.4% and 9.4%, respectively.

It also marked the first time these indices registered back-to-back winning sessions since early February!  

The NASDAQ dipped all the way out of positive territory, ending lower by 0.45% (or about 33 points) to 7384.29.

The situation looked a lot better heading into the final hour, with the Dow and S&P both up by more than 5% and the NASDAQ in the green.

Of course, it all had to do with drama on Capitol Hill, as Senator Bernie Sanders and a few Republicans expressed issues with the legislation. 

It WILL get done. It has to! Coronavirus cases are still rising in the U.S. despite all the shutdowns, which is the main reason why everyone fears we could have more downside to go. 

This legislation needs to pass in order to give the market some breathing room as we wait for this sickness to be contained. Let's see if it can get done tomorrow…

Today's Portfolio Highlights:

Home Run Investor: Every space got hurt in this coronavirus selloff, but the satellite space just got “killed in the crash”. With the market bouncing back a bit, Brian added MAXR in one of his other portfolios to gain some exposure to this beaten-down space before the rebound. And now the editor is using his “huge cash position” to do the same in this service. On Wednesday, EchoStar Corp (SATS) was added. While the broader market gave back much of its gain in the last hour, this Zacks Rank #1 (Strong Buy) held up. Brian appreciates its very attractive valuation and that losses are shrinking for this quarter, next quarter and full year 2020. Read the full write-up for a lot more on this new addition.

Surprise Trader:
In extraordinary circumstances like these, sometimes it helps to do something ‘normal’. For example, this portfolio is getting ready for a good old-fashioned earnings report, as athleisure staple Lululemon (LULU) will be going to the plate after the bell tomorrow, March 26. It has a positive Earnings ESP of 0.42% and analysts are expecting $2.25. That would represent earnings growth of 21.62% year over year. Dave added LULU on Wednesday with a 12.5% allocation. Read the full write-up for more.

Counterstrike: We haven’t seen many back-to-back positive mornings of late, so Jeremy took advantage earlier today by cashing in a couple profits. The editor sold half of Texas Roadhouse (TXRH) for a 22.7% return and half of RH (RH) for a 10% profit. Both of these stocks were added about a week ago on March 17. Now the plan is to play the short side. Read the full write-up to stay posted.

TAZR Trader: There’s no telling yet which midcap big-data companies will manage to prosper in this unique and challenging environment, but Kevin has long been a fan of Alteryx (AYX). Therefore, the editor decided to add more to his position on Wednesday as the stock stalls below $100. Read the full write-up for more on this move. Meanwhile, the portfolio had one of the best performers today as Invitae (NVTA) rose 20.5%.

Stocks Under $10: This portfolio sold Maxar Technology (MAXR) in late February for a triple-digit return, as this space technology solutions company made it into the top performers list countless times. Brian added it again on Friday… and the stock looks to be picking up where it left off. The stock jumped 21% on Wednesday to become one of the biggest winners of the day among all ZU names.

All the Best,
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’ 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

Follow MrTopStep in our Social Space:

Tradechat (2567 Posts)


(Visited 8 times, 1 visits today)

Leave a Reply