Same Concerns But Steeper Declines

The market suffered through the same problems as yesterday, but this time the losses were more severe. Crude prices were down again, and new concerns for tax cuts surfaced after a Republican senator said he couldn’t vote for the plan as is. The pattern was very similar to yesterday: Stocks came off morning lows but couldn’t make up enough ground to finish higher.

By the closing bell, the Dow dropped by 0.59% to 23,271.3 and the S&P was lower by 0.55% to 2564.6. The NASDAQ declined 0.47% to 6706.2.

The portfolios weren’t as active as yesterday, but there were still several moves. Options Trader was worrying too much about one of its positions, so Kevin closed the spreads earlier than expected. The portfolio still got an impressive double-digit return. Insider Trader and Home Run Investor also bought on Wednesday. Read the highlights section below for more on all of today’s trades.

Today's Portfolio Highlights:

Options Trader: Kevin still likes Centene (CNC), but he is, quite frankly, getting tired of worrying about this provider of managed care programs. It first had to deal with the Obamacare repeal efforts, and now the Senate’s tax cut plan surprisingly includes a repeal of the Obamacare mandate. Even though the portfolio’s two bull call spreads in CNC have only generated a little more than half of the maximum gain, the editor just wants to play it safe and be done with CNC. Therefore, he eased his mind by closing out the spreads on Wednesday and banking a nice 82% return.

Insider Trader: The portfolio bought again on Wednesday when Tracey added dental products company Dentsply Sirona (XRAY). It's under new management these days and will be focused on strengthening its sales force and R&D. Analysts see 12% earnings growth in 2018. In a signal of confidence for the new direction, the company’s Interim CEO and new CFO both bought shares earlier this week. The editor likes what she’s seeing at XRAY and decided to buy the stock with a 10% allocation. Read more in the full write up.

Home Run Investor: The portfolio needed an energy play, so Brian Bolan fulfilled his promise of a new pick by adding pipeline player Delek US Holdings (DK). This name should provide good exposure to the industry, yet be protected from the big swings in oil prices. DK has beaten earnings estimates in three of the past four quarters, and has watched earnings estimates for this year soar to a profit of 64 cents from a loss of 7cents in 90 days. Plus, topline growth is expected at 35% for next year, which should drive EPS growth of 150%. The editor believes he’s getting a great stock at a discount today. Read the full write-up for more.

Until Tomorrow,
Jim Giaquinto

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