Today’s episode of Full Court Finance at Zacks quickly dives into the broader market and where things stand to start November. The focus then shifts to three blue-chip technology stocks to consider buying as stocks hit new highs on strong earnings, resilient American consumers, and more.
All three major U.S. indices broke records in October during a resurgent month for stocks. The tech-heavy Nasdaq climbed 9% last month, the S&P 500 jumped over 7%, and the Dow popped roughly 6%. All three then hit new highs on Monday to start November trading.
The forward-looking market shrugged off slow Q3 GDP growth and other concerns in favor of the positives. The improving earnings picture includes everyone from tech giants to Ford
F
. The S&P 500 margins outlook also remains strong for 2022 and beyond, despite rising pricing and supply chain bottlenecks (also read:
Even Big Tech Has Supply Chain Problems
).
Plus, the consumer-driven U.S. economy flashed comeback signs in the first month of the fourth quarter, from hotel occupancy to restaurant dining. And consumer confidence increased in October, after three months of declines, which is a great sign for the economy as we enter the heart of the holiday shopping period.
Wall Street will also be left chasing returns in equities for the foreseeable future even when the Fed finally starts to raise its core interest rate. Therefore, investors with long-term outlooks might want to consider buying strong stocks they plan to hold for a while, even though the market could face some near-term selling pressure after the strong October run pushed things to some overheated technical levels.
The first stock up is
Microsoft
MSFT
. The historic technology firm continues to benefit from the expansion of the booming cloud computing market. MSFT topped our Q1 estimates last week and it overtook Apple
AAPL
as the world’s most valuable company after its post-release climb.
Salesforce
CRM
shares have surged to new highs and its growing portfolio of work-focused software offerings help it stand out in a crowded, yet vital industry. Last up is creative and business software powerhouse
Adobe
ADBE
. The firm has grown at impressive and steady rates by selling hard-to-replicate and replace software.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report