Stocks and Securities
Stocks had a interesting day on Friday, with the underperformance of financial and technology sectors balancing gains in other sectors. The Dow Jones Industrial Average finished the day up 0.3%, once again closing at a new all-time high for the second day in a row. The S&P 500 finished essentially flat, and the tech-heavy Nasdaq closed down 0.5%. For the week, the S&P 500 and the Dow added 0.9% and 2.3%, respectively, while the Nasdaq lost 0.3%.
As stated above the information technology sector lost 0.3% on Friday, capping an unimpressive week overall. Within the group, Micron (MU), a meme stock and an darling of most millennial investors, was among the worst performers, falling 2.9% after Micron (MU) above-consensus earnings report was overshadowed by disappointing guidance for the current quarter, somewhat attributed to the tariffs.
On the oil front, WTI crude climbed 2.6% last week to $70.77/bbl even though President Trump criticized OPEC on Thursday morning, saying the “OPEC monopoly must get [oil] prices down now!” Reuters then reported on Friday that OPEC and non-OPEC countries are discussing the possibility of raising output by 500,000 barrels a day to counter falling supply from Iran due to U.S. sanctions.
In the crude oil market, WTI crude futures finished up 0.8% at $70.77/bbl – and are up another 1.61% to 71.92/bbl this morning, Crude Oil Brent has also had an great run since mid-august when it was trading at low $70s, now up about 15% (2.21% this morning) and at $80.54.
Looking ahead this week, the Federal Reserve will release its latest policy directive on Wednesday. Investors can expect that the central banks to hike rates, with the CME FedWatch Tool placing the chances at 100%. It would be wise to pay specific attention to the Fed’s rate forecast for the coming year.
Is it time to buy BioMarin Pharmaceutical Inc. (BMRN)?
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Stocks on the Radar
Regarding potential ETF plays from our ETF ALPHA segment. We had a very good week last week with our watchlist performing as such: ERX (+4.75%), LABU (+3.75%), RUSL(+12.4%), TMF (-3.75%) and UGAZ (+18.2%). Higher risk trades as recommended were: EDC (+10.6%) and EWJ (+5.3% in two weeks). This week our watchlist of best ETFs to buy includes, BRZU, EDC, ERX, INDL, LABU and RUSL.
Furthermore, we encourage our readers to look at our most recent article titled “New Frontiers in Genomic Medicine” as we highlighted Bluebird BioInc. (BLUE) as our next long-term investment opportunity.
Lastly, take time to read our “Best stocks to Buy in September”, as we highlighted four of our picks for this month.