US Stock Markets Are Northbound: 5 Top-Ranked Growth Picks
Zacks Investment Research | Jun 11, 2018 08:12AM ET
Wall Street is finally showing signs of stabilizing despite the lingering presence of destabilizing elements. For the week ended Jun 8, all three major indexes – The Dow 30, S&P 500 and Nasdaq Composite – closed in the positive territory. Robust first-quarter 2018 earnings and strong fundamentals of the U.S. economy foreshadow the persistence of uptrend in stock markets.
Robust labor market data for May, recovery of il prices due to supply concern, anticipation of interest rate hike by the Fed which will bode well for the financial sector and easing of trade war fear are primary reasons behind the stabilization of the markets. Major indexes are likely to maintain their northbound movement in the near term. Consequently investment in growth stocks with favorable Zacks Rank will be a prudent move.
Wall Street’s Big Weekly Gain
For the week ended Jun 8, the Dow 30 increased 2.8%, its biggest weekly gain since March. Notably, the index closed at 25,316.53, on Jun 8. This was blue-chip index’s highest level of closing since Mar 12. The S&P 500 and Nasdaq Composite recorded weekly gains of 1.6% and 1.2%, respectively. These reflect third straight weekly advances for both indexes.
Strong weekly gains have placed all three indexes in the green year to date. The Dow 30, S&P 500 and Nasdaq Composite are up 2.4%, 3.9% and 10.8%, respectively.
Robust Earnings Momentum
First-quarter earnings results have been exhibiting strong momentum so far. Total earnings are up 24.4% from the same period last year on 8.7% higher revenues. This is the highest quarterly earnings growth pace in seven years.
For the second quarter, total earnings for the S&P 500 index are expected to be up 17.9% on 7.9% higher revenues. For full-year 2018, total earnings for the S&P 500 index are anticipated to be up 19.6% on 6% higher revenues. (Read more: Original post
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