Stocks couldn’t continue their comeback run after this long weekend. Two of the major indices entered today’s session with 6-day winning streaks after recouping about half of the recent correction’s losses last week. But that came to an end Tuesday.
The Dow was red all day and ultimately finished with a slump of 1.01% to 24,964.8. The S&P briefly entered the plus side, but it was only temporary as the index slipped 0.58% today to 2716.3.
In addition to the ongoing climb in bond yields, these indices were also hurt by a bad day for Walmart (NYSE:WMT). The world’s largest retailer reported earnings per share that missed the Zacks Consensus Estimate, but perhaps more importantly it announced a substantial slowdown in fourth-quarter ecommerce sales. The stock plunged more than 10% on Tuesday for its worst day since the late 80s. (It should be noted, though, that earnings and revenue both improved year-over-year while revenue managed to beat our expectations).
However, it was a pretty good day for technology. The NASDAQ slipped only 0.07% to 7234.3 after spending most of the day in the green.
In the portfolios, Black Box Trader swapped out four names, while Short List only changed one. Learn about these moves in the highlights section below and find out whether the market has topped or not in this week’s Zacks Confidential.
Today's Portfolio Highlights:
Zacks Short List: There was only one change to the portfolio this week. It short-covered Ionis Pharma (IONS) and replaced it by adding Incyte Corp. (INCY). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.
Black Box Trader: Due to President’s Day on Monday, we ran this portfolio’s screen today. Four names are being swapped out this week. The stocks that were sold include:
• American Eagle (AEO, +5.3%)
• Centene Corp. (CNC)
• The Michaels Co. (MIK)
• Walmart Corp. (WMT)
The new buys that replaced these names are:
• Fiat Chrysler (FCAU)
• Sally Beauty (SBH)
• XPO Logistics (XPO)
• U.S. Steel (X)
Read the Black Box Trader’s Guide to learn more about this computer-driven service designed to take the emotion out of investing.
Zacks Confidential: Has the market topped out or not? That’s the big question on most investors’ minds right now. The best way to try and find the answer is to look at past market tops and compare them to the current market. That’s exactly what Kevin has asked Dave Bartosiak to do in this week’s Zacks Confidential. Whether you’re into technical analysis or not, make sure to read his detailed article that includes three top picks to take advantage of the current price action: Testing the Tops of 1987, 2000 and 2007.
All the Best,
Jim Giaquinto
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