We were all hoping that Apple's quarterly report yesterday (after the bell) would mean good things for Friday's session…and we weren't disappointed. Shares of the iPhone maker jumped 2.6% today and set the stage for another strong week in the market. Not only did AAPL offer positive earnings and sales surprises, but it also gave a better-than-expected forecast for the holiday shopping season (yes, it's time to start thinking about the holidays).
Arguably, the Apple news was more important on Friday than the Employment Situation Report. The economy added 261K jobs last month, which was below expectations but marked a big improvement from last month's surprisingly weak reading. Plus, the unemployment rate dipped to its lowest level in 17 years.
The path was cleared for a solid end to another positive week. On Friday, the tech-heavy NASDAQ jumped 0.74% to 6764.4. The S&P was up 0.31% to 2587.8 and the Dow advanced 0.10% to 23,539.2. All of the indices finished the session with new records.
The S&P and Dow just completed their eighth straight week of gains, having advanced 0.3% and 0.5%, respectively, over the past five days. The NASDAQ was the best performer of the week with a 0.9% advance, marking its sixth straight week in the green.
For the portfolios, Tracey dared to re-enter the oil patch in Value Investor, and also bought a RV manufacturer that is at new highs but still has room to run. The only other buying activity today came from Counterstrike , which picked up two companies that fell victim to high-frequency traders despite strong quarterly performances. Learn more in the highlights section below:
Today's Portfolio Highlights:
Counterstrike: Jeremy has a couple "classic" Counterstrike moves to end the week. Cummins (CMI) and Oshkosh Corp. (OSK) are both Zacks Rank #1s (Strong Buys) that recently reported impressive quarterly results. However, shares for both dipped lower due to high-frequency traders, giving the editor a discount on a couple of names that are set to eventually move higher. He added each with a 6% allocation on Friday. Jeremy would be willing to add more if they slip a bit further. Get all the specifics on these new buys in the complete commentary.
Value Investor: The story is changing in the oil patch. The two-year long crude oil slump appears to be over as oil has busted through $55, which means it's time for value seekers to reassess the space. That's why Tracey added Pioneer Natural Resources (PXD) to the portfolio on Friday. The stock is down 15% on the year, and she thinks it's near the bottom. PXD is one of the top E&P oil companies with the strongest balance sheet and a recent earnings surprise.
Meanwhile, shares of Thor Industries (THOR) have been hitting new highs…but analysts think there is still room to run. It's not just about RVs anymore; the towables market is now a more than $7 billion industry, and the only 'problem' for this company seems to be keeping up with demand. If you're concerned about buying a stock at new highs, the editor wants you to consider that earnings are expected to grow 14% this fiscal year. So THOR is a value stock that also enjoys growth and momentum…a rare combination. Read the full write-up for more on both of these new additions.
Have a Great Weekend,
Jim Giaquinto
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