The month of August ended on Thursday with this market continuing its impressive rally in the face of numerous challenges. Not only did each of the major indices put together another month of gains, but the NASDAQ is back at a new record.
The index was up 0.95% today to 6428.7. The S&P just barely stayed on positive ground for August, but has a five-session winning streak after climbing 0.57% to 2471.7. The Dow advanced 0.25% to 21948.1.
This is a big week for economic data, and stocks got a lift today from solid reports for jobless claims and consumer spending. These encouraging results followed yesterday's impressive ADP Employment report and the better-than-expected Q2 GDP estimate, while building some excitement for tomorrow's Government Employment Situation report.
However, the market was just as interested in the prospects of tax reform, which looks to be gaining steam in the White House. Stocks have been waiting all year for something to happen on this front. If POTUS and Congress are finally ready to actually do something, then it would mean BIG things for stocks. Of course, that depends on what the reform actually looks like and if it can get passed. Stay tuned…
Today's Portfolio Highlights:
Stocks Under $10: News of a distribution deal sent shares of New Age Beverages (NBEV) sharply higher yesterday. The company was giving some of that back earlier today, so Brian thought it was a good time to add this stock to the portfolio. Subsequently, NBEV took off again and finished Thursday's session with another double digit performance. Earnings estimates for this year and next have moved up sharply of late, accounting for the company's status as a Zacks Rank #2 (Buy). Read the editor's full write-up for a lot more on this new addition.
Momentum Trader:"Today the market rallied again on news of tax reform. Perhaps this is enough hope to keep the market rallying on further. However, I'm a bit concerned that we are getting jacked up on the hopes of reform that may never come.
"The trading today was a retrace of most of the macro moves we've seen previously. What I mean by that is, the dollar weakened and oil strengthened. That is the opposite of what we've seen over the last several sessions." -- Dave Bartosiak
Counterstrike:"Investors continued to buy equities around the globe as the recent uptrend continued above the 2460 level in the S&P. This marks a break of the short setup pointed out earlier in the month and clears the way for all-time highs once more. Pending no new threats from North Korea, investors seem to be looking for this bull market to continue into the end of the year.
"This week was a disaster for the bears. Not only did they have the fuel to push price lower (N. Korea and Harvey), but they also gave up 50-day moving averages in the Nasdaq and S&P. With those important technical indicators in the bulls favor, it wasn't hard to push price higher today and break the short Fibonacci level.
"It's pretty amazing how close we came to our downside targets. It was looking good for a while, but this is just another example of how strong this market is at the moment." -- Jeremy Mullin
All the Best,
Jim Giaquinto
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