This slow, summer week sure did see A LOT of big stories!
We saw Apple (AAPL) become the first publicly-traded company to reach $2 Trillion and Tesla (TSLA) soar right past $2000 a share.
There was an outstanding quarterly report from Target (TGT) amid a mostly solid slate of earnings results.
We even received both positive and negative economic data, including a warning from the Fed.
But the biggest story of all is that two of the major indices have completely recouped their coronavirus losses and head into the weekend in record territory.
The NASDAQ gained approximately 2.7% this week and reached a new high in four of the five sessions. That included today, as the index advanced 0.42% (or nearly 47 points) to make more history at 11,311.80.
Technology has resumed its leadership position. Apple really stood out by advancing another 5%+ today and securing its spot all by itself above $2 Trillion.
But the NASDAQ is no longer alone, as the S&P also reached new heights. It rose 0.34% to 3397.16 for its second record close of the week. It advanced 0.7% in the five days.
The Dow actually had the best performance on Friday, and almost rose enough for a weekly advance despite starting off with a three-day losing streak. But it didn’t quite make it.
The index advanced 0.69% (or around 190 points) to 27,930.33. So it was down for the week by less than 1 point!
If you were wondering, the Dow still has about 6% to make up before reaching its own closing high.
The market enjoyed a nearly 25% jump in existing home sales on Friday, along with some good manufacturing and services data from IHS Markit.
These reports provided a nice balance after a couple challenging days, which included very cautious (some would say ‘gloomy’) statements from the Fed and a disheartening jobless claims report that saw the number shoot above 1 million once again.
But through it all, the market continues to move higher and heads into the final full week of August with a pretty good chance of making it five straight months of gains.
Today’s Portfolio Highlights:
Insider Trader: It’s rare for insiders to buy shares when their company is at multi-year highs, but that’s exactly what’s happening at CarParts.com (PRTS). In fact, this online car parts retailer is up 550% year to date! The company reported a solid quarter recently with sales soaring 61%, while also conducting a secondary offering at $13 that raised $63.7 million for general corporate purposes. And now, two insiders picked up shares earlier this week, including the General Counsel and a director. Apparently, they think shares of PRTS are moving even higher! Tracey wants to get in too, but this is a fully-invested portfolio. She needs to make some room first. The editor sold the rest of Cincinnati Financial (CINF) for a more than 30% return, which allowed her to add PRTS with a 6% allocation. Read the full write-up for more specifics on these moves.
TAZR Trader: Analysts are scrambling to raise their estimates and price targets on Keysight Technologies (KEYS) after this provider of electronic design and test instrumentation systems reported a strong beat and raise quarter. The company surprised by 42% on the bottom line and 10% on the top. Kevin saw an opportunity this morning as shares pulled back to close the Aug 13 gap and kiss the 50-day near $100, with most analysts boosting their PTs above $120. The editor added more to KEYS on Friday. He bought the original position earlier this month. Read the full write-up for more details on this move.
Blockchain Innovators: Shares of Rambus (RMBS) recently came off their highs, so Dave decided it was a good time to cash out. He sold the stock on Friday for a nearly 31% return since being added in February 2019. The new buy was Axcelis Tech (ACLS), a leading producer of ion implantation equipment used in the fabrication of semiconductors. “If chip makers like AMD and NVIDIA provide the picks and axes for the blockchain industry, then companies like Axcelis build the molds for the picks and axes,” said Dave. Rising earnings estimates have made ACLS a Zacks Rank #2 (Buy), while earnings are expected to grow 134% this year with revenue growth of nearly 35%. See the full write-up for more on today’s action. In other news, this portfolio had a couple top performers today as NVIDIA (NVDA) rose 4.47% and PFSweb (PFSW) advanced 4.46%.
Value Investor: The housing and refi market is “red-hot” right now and should stay that way for a while. Tracey wanted more exposure to the space, so she added Flagstar Bancorp (FBC) on Friday. The company does community banking in Michigan, but the editor is most interested in its national mortgage servicing side business. Earnings are soaring thanks to the hot mortgage market, which convinced analysts to raise their estimates. As a result, FBC is a Zacks Rank #1 (Strong Buy). Shares are “dirt cheap” and still down 22.3% year-to-date. Tracey was also impressed to see insiders buying the name. Make sure to read the complete commentary for a lot more on this new addition.
Have a Great Weekend!
Jim Giaquinto
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