Stocks and Securities
U.S. stocks closed higher Tuesday as investors continued to brush aside anxiety over the trade war between the U.S. and China and instead focus on positive corporate earnings. The S&P 500 index rose 8.05 points, or 0.3%, to 2,858.45, gaining for a fourth session in a row as energy and industrial sectors led. The benchmark index is only 0.5% below its record close of 2,872.87 reached on Jan. 26.
The Nasdaq Composite Index gained 23.99 points, or 0.3%, to 7,883.66, while the Dow Jones Industrial Average advanced for a third session, adding 126.73 points, or 0.5%, to 25,628.91.
Second-quarter results so far have been exceptional, with S&P 500 companies reporting earnings growth of 24% and sales gains of 9.8%. Strong earnings have helped to bolster the belief that steady U.S. economic growth will continue to support corporate bottom lines and keep stocks buoyant.
The NASDAQ’s advance was its sixth day in a row, its longest winning streak since March, led by Tesla (TSLA) which jumped following a tweet from Chief Executive Elon Musk that he was considering a move to take the company private. A potential deal to take Tesla (TSLA) private would be by far the largest buyout in history.
Tesla (TSLA) Chief Executive Elon Musk roiled markets on Tuesday, tweeting he was “considering” taking the Silicon Valley car maker private at $420 a share. At that share price, a buyout would cost about $72 billion, excluding debt. We believe with Tuesday’s advance the risk/reward profile is palatable in the shares and would avoid allocating fresh money towards the shares. You can read our full take on Tesla (TSLA) here.
- Wednesday (Aug 8)
- Morning: ATHM CVS ENDP KDP KORS LITE MYL NYT SINA WB
- Afternoon: ANGI BKNG CVNA FOXA GDOT MNST OXY NUAN ROKU SRPTTIVO NUAN YELP
What are the best stocks to buy in this market?
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Stocks on the Radar
If you have not have the chance to look at our new segment – ETF ALPHA – please take the time to do so. There we have highlighted potential trades from 16 different ETFs. There are some great ETFs to buy in this week’s post. If you are unsure about the benefits of trading ETFs then please read our post here.
We hate to brag but we nailed our ETFs plays for last week. Our hot streak continued last week. With notables such as DRN (+8.6%) and INDL +3.5% (+12.2% since our recommendation). Additionally, BRZU +5.67% (+14% since our recommendation) and DRN +10% from our buy zone.