We certainly didn’t get a robust bounceback
rally on Thursday after two days of losses, but the major indices
did record their first gains of this shortened week.
Hey, when the market’s in a sour mood, we need to take whatever we
can get!
The Dow advanced 0.17% (or about 43 points) to 25,169.88. This
performance didn’t make a dent in the losses over the previous two
sessions, but it marked the first time this week that the index
didn’t plunge by more than 200 points.
The S&P couldn’t recapture 2800 after slipping below the mark
yesterday, but it still advanced 0.21% to 2788.86.
The best performer (on a percentage basis) was actually the NASDAQ,
which advanced 0.27% (or about 20 points) to 7567.72.
It was another choppy session with the indices completely giving up
morning gains by midday, before regrouping and heading higher late
in the session.
Stocks have been under pressure for weeks as the trade dispute with
China remains unresolved and seems to be getting more heated. More
recently, declining bond yields have investors worried about slower
economic growth and even recession.
As a result, May will be the first negative month of 2019 as stocks
are off approximately 5%. Meanwhile, the Dow is on its way to a
sixth week in the red, while the other two major indices are
working on their four straight week of losses.
The fantastic news is that May is almost over and we head into June
with solid gains for the year. Unfortunately, the market’s
sentiment has taken a turn for the worse from the good old days
(just a few weeks back) when we thought a trade deal was on the
way. But the economy is still strong, as evidenced by the second
reading for Q1 GDP at 3.1%. The big question heading forward into
the summer months is: How long will this economy remain resilient
during this trade dispute?
Today's Portfolio Highlights:
Blockchain Innovators: You can consider Pyxus
(PYX) to be a two-fer. Not only is this agricultural and consumer
products company diving into the cannabis business, but it’s also
using blockchain to track the platform for its products. That’s two
of the fastest-growing spaces in the market! Of course, Dave is
most interested in blockchain, which PYX uses to track its cannabis
products from origins all the way through its use by customers.
Read the complete commentary for more on this new addition.
Stocks Under $10: You’ve probably heard rumors
that Everi Holdings (EVRI) is exploring a sale. But Brian Bolan
isn’t so sure, especially after such a solid quarter for this
provider of gaming payment solutions and slot machines. The editor
smells a 'head fake'. Nevertheless, he sees this as a good time to
sell EVRI and collect a 64.3% return in approximately 4
months.
The portfolio immediately replaced this name by adding Tecnoglass
(TGLS), a Zacks Rank #2 (Buy) that manufactures and sells
architectural glass & windows and aluminum products for the
residential and commercial construction industries. The company has
beaten the Zacks Consensus Estimate in three of the last four
reports and its valuation is very attractive. Plus, Brian likes its
topline growth expectation of 26%. Read the full write-up for
more.
Technology Innovators: One of the strongest areas
of the market during these hectic times is the solar space, which
seems to be divorcing itself from movements in oil and becoming a
real replacement for traditional energy sources. Therefore, Brian
Bolan went to this industry for his newest addition to the
portfolio and picked up Azure Power (AZRE). While estimates have
been stagnant of late, the editor is impressed with its history of
earnings surprises that includes an average beat of more than 100%
over the past four quarters. In addition, the chart is telling
Brian that AZRE has been 'basing' for a while and could move
sharply to the upside on good news. Read the full write-up for a
lot more on this new addition.
Until Tomorrow,
Jim Giaquinto
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