The major indices had been marching in lockstep for the past couple of days, heading upward and making new all-time highs along the way. The S&P and NASDAQ needed a break on Thursday, but the Dow didn’t. The index kept moving with a gain of 0.20% to a fresh record of 22,203.5.
The S&P slipped 0.11% to 2495.6 as 2500 proves to be elusive once again. The NASDAQ was off 0.48% to 6429.1. Retailers and technology were under pressure in the session, while a rise in consumer price inflation for August stoked fear that the Fed would raise rates sooner than expected.
“For all the bears out there saying this is the peak, that stocks are a bubble, and the crash is imminent, nothing in the market's behavior is indicating that,” said Tracey in Insider Trader. “There's no cash pouring in, mom and pops aren't obsessing over it, there's little speculation, and there's little excitement amongst the investing class.”
Speaking of Insider Trader, that portfolio was the only one making moves today. Tracey swapped out three positions on Thursday. The editor sold two names for profits and added three more to capitalize on the high level of activity among insiders for beaten-down stocks. Learn more below:
Today's Portfolio Highlights:
Insider Trader: It was a busy day for the portfolio as Tracey bought three names amid heavy insider activity. But first, she sold three positions to make room and two of them were positive. The sold stocks were Keysight (KEYS, +7.5%), Matson (MATX, +7.1%) and Summit Hotels (INN). And now, the new buys are:
• Helmerich & Payne (NYSE:HP): Shares of this contract drilling company have plunged 36% so far this year on concerns over the price of oil and the sustainability of its dividend. But the company’s CEO thinks the selling is way overdone and bought shares just after the stock hit a 5-year low.
• Freeport-McMoRan (FCX): This company is the largest copper miner in the world, and its actually up 4.3% year-to-date. That means its in better shape than most natural resource stocks. And the President & COO apparently thinks its going to get even better because he bought more than 36,000 shares earlier this month.
• Cinemark (CNK): This has been the worst summer box office season in 21 years, and shares of this movie theater chain are down 8.5% year-to-date to 3-year lows. However, the company is updating its refreshments and converting to luxury recliners. The CEO believes this will be a big boon to CNK because he bought 5000 shares late last month.
The allocations should come to about 10% each when taking the above-mentioned sells into consideration. The full write-up offers much more on each of these moves.
Options Trader: "The Dow notched another new all-time high today, while the S&P and Nasdaq finished just under that mark. But it has so far been a great week for the markets with all of the major indexes poised for solid weekly gains.
"Between strong economic numbers, robust corporate profits, excitement over tax cuts, and an air of bipartisanship emerging in Washington (as nascent as it may be at this stage), stocks are being well supported.
"And with another earnings season just around the corner, hopes are high that stocks can keep their uptrend going." -- Kevin Matras
Momentum Trader: “(W)hy the all-time highs? Why has the market climbed the wall of worry and why now, suddenly, are we breaking out while the dollar is reversing? Well, I think the explanation is more simple than people realize. The market is beginning to realize that the Art of the Deal has arrived.
“When Trump reached across the aisle to make nice with the Democrats to get the debt ceiling bill passed, something changed. It changed for the better as investors who doubted the President’s pro-business stance, awakened to better odds of progress. If he can get a deal done for the debt ceiling, maybe he can get a deal done for taxes as well. If he gets a deal done for taxes, then this market is going to continue to scream higher.
"You don’t have to take my word for it. If you want to know how the market feels about his chances, take a look at the Russell 2000 and the US Dollar. These both give you vital information. The Russell 2000 and its mostly domestically focus has a pulse on the expectations of the US economy. As that index starts to break higher, it tells you that investors are bullish about the prospects." -- Dave Bartosiak
Have a Great Evening,
Jim Giaquinto
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