S&P Rises but Can't Make New Highs
Zacks Investment Research | Jun 08, 2021 09:15PM ET
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▪ Kevin Cook and Tracey Agree to Disagree on whether history will write that Elon Musk disrupted both auto and oil industries
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The NASDAQ again was the best performer, though it only advanced 0.31% (or about 43 points) to 13,924.91. The S&P, which came into this session less than 0.3% away from making history, could only advance 0.02% to 4227.26. That’s less than 1 point!
The Dow now has back-to-back losses after slipping 0.09% (or around 30 points) to 34,599.82, but it’s still less than 1.5% from its own record. “(The market) almost made all-time highs once again after failing to clip a new high print this morning. We will get there in time, as America is clicking and the reopening is allowing the money to flow,” said Jeremy Mullin in Counterstrike.
Meanwhile, it appears there are more jobs out there then there are people to fill them. According to the Job Openings and Labor Turnover Survey (JOLTS), April had nearly 9.3 million job openings, which is a record high and more than the previous month’s 8.3 million (which was also a record at the time). “Current labor shortage notwithstanding, it shows the jobs market isn't expected to slow down anytime soon,” said Kevin Matras in Options Trader. (See more from this editor below.)
The meme stocks are still a big story in the market, especially with the speculative traders finding new targets. For example, healthcare technology company Clover Health (CLOV) soared more than 85% today.
However, GameStop (NYSE:GME), the posterchild of the movement, will be reporting its fiscal first quarter results after the bell tomorrow. That should be pretty interesting. Shares of GME are up approximately 1500% so far this year if you can believe it...
▪ Kevin Matras answers questions regarding a couple of common mistakes and misconceptions in stock-picking and portfolio management, and how to correct them in Zacks Mailbag
▪ Sheraz and Kevin Cook choose one portfolio to give feedback for improvement
▪ And much more
The market was even flatter on Tuesday than it was yesterday, as the summer swoon keeps stocks just below all-time highs while waiting for the next catalyst.
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Today's Portfolio Highlights:
Options Trader: The small-cap Russell 2000 is really breaking out right now, so Kevin made a move on Tuesday to take advantage of it. He bought to open two September 233.00 Calls in the iShares Russell 2000 ETF (IWM). Read the full write-up for more on this move and a recap on the rest of the portfolio.
Surprise Trader: The first report for H&R Block (HRB) after the tax deadline is right around the corner. The official date hasn’t been announced yet, but last year it was on June 16. So it’s close... and this provider of tax preparation services has a positive Earnings ESP heading into the print. This Zacks Rank #2 (Buy) beat by 6.4% last time. Dave added HRB with a 12.5% allocation on Tuesday, while also dropping the stagnant Columbus McKinnon (CMCO) for a slight loss to prepare space for the next earnings season (which will be here before you know it). Read the full write-up for more on today’s action. In other news, this portfolio had THREE of the best performers on Tuesday out of all the ZU services. Those winners were Dave & Buster's Entertainment (PLAY, +9.8%), Dillard's (NYSE:DDS, +6.4%) and Signet Jewelers (NYSE:SIG, +4.7%). DDS has also jumped nearly 64% in the past 30 days.
Stocks Under $10: With the economy opening back up, Brian thinks the outsourcing space will keep improving as companies have trouble enticing staff back to work. Therefore, the editor added business process services company Conduent (NASDAQ:CNDT) on Tuesday. Over the past four quarters, this Zacks Rank #2 (Buy) has beaten the Zacks Consensus Estimate three times and matched once. In addition to rising earnings estimates, CNDT has a solid valuation and a good-looking chart. Brian thinks this “steady and reliable play” is poised for a surge in growth moving forward. Read the full write-up for more.
Blockchain Innovators: The portfolio added eXp World Holdings (NASDAQ:EXPI) more than a year ago on March 30, 2020, and in that time the stock has surged – wait for it – by 866%! Dave added the name because he thought it would do well during the pandemic, since it provides cloud-based real estate brokerage services. Thanks to blockchain, most of its agents were already working from home or a remote office when the shutdown began. Well, the editor was right! We mention EXPI today because it was the best performing stock of the session among all ZU names with an 11.2% advance.
Zacks Short Sell List: The portfolio cashed in a double-digit winner on Tuesday along with three other names, as four positions were changed in this week's adjustment. The stocks that were short-covered today included:
TAL Education (TAL, +54.6%)
Callaway Golf (ELY, +2.1%)
Maxar Technologies (MAXR)
Shift4 Payments (FOUR)
The new buys that filled the service back up were:
Bumble (BMBL)
Chegg (CHGG)
Las Vegas Sands (LVS)
Magnite (MGNI)
Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short Sell List Trader Guide.
Until Next Time,
Jim Giaquinto
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