As Goes Apple, So Goes the Market

Remember, the latest episode of the Zacks Ultimate Strategy Session will be available for viewing no later than this Thursday, September 13. Sheraz Mian, Tracey Ryniec, Ryan McQueeney and Kevin Cook will cover the investment landscape from several angles in this informative event.

Don’t miss your chance to hear:

• Tracey and Ryan Agree to Disagree on how risky it is to invest in companies with visionary CEOs
• Sheraz answers your questions in Zacks Mailbag
• Sheraz and Ryan choose one portfolio to give feedback for improvement
• And much more

So be sure to mark your calendar then log on to Zacks.com and bookmark this page. 


After being down in the dumps for the better part of a week, tech stocks finally got a proper rally on Tuesday thanks to Apple. 

The country’s first trillion-dollar company is holding one of those big events tomorrow that gets tons of fanfare in the market. It’s likely to unveil new iPhones and possibly updated versions of other products like iPads and the Apple Watch. Apple was up more than 2.5% on Tuesday, helping tech get out of the rut its been in since early last week and keeping the market’s mind off of trade for the time being. 

The NASDAQ had the best performance with a gain of 0.61% to 7972.5. The index plunged 2.6% last week amid the tech downturn and has now put together a couple consecutive days of gains...though its still far from making up the loss. However, if last week’s plunge really was as overblown as many think, then we all know how quickly tech can rebound. 

The Dow ended two straight days of losses on Tuesday with a rise of 0.44% to 25,971.1. The S&P was up 0.37% to 2887.9. Interestingly, the Big 3 all started the day solidly in the red before reversing course. 

Natural gas and crude oil also had a strong day as Hurricane Florence makes its way to the East Coast. By all accounts it’s a monster storm that had President Trump and local officials pleading with residents to evacuate if asked. The market will be paying close attention to this storm as it approaches land later this week. Let’s hope the power of this storm is exaggerated and anyone in its path stays safe. 

Tech and Florence didn’t leave much room for trade talk today, especially since we’re still stuck in a couple stalemates. President Trump hasn’t initiated new tariffs on China yet, though China did ask the WTO for authorization to impose trade sanctions on the U.S. Mercifully, trade negotiations with Canada appear to be growing more hopeful...though we’ve heard that before.

Today's Portfolio Highlights: 

Insider Trader: The “quiet period” for insider buying is quickly approaching, so Tracey decided to make a move while she still could. Fortunately, the editor found a good candidate in Hilton Grand Vacations (HGV). Timeshares are selling quite well but shares of this company have slipped 24% so far this year and are at 52-week lows. However, the CEO and a director obviously think the stock is a deal at this level because they each bought shares of their own company last month. And today Tracey is followed through by adding HGV with a 10% allocation for the portfolio. Read the full write-up for more. 

Stocks Under $10: In three of the past four quarters, North American Construction (NOA) has topped the Zacks Consensus Estimate. But it was the most recent beat that really caught Brian Bolan’s attention, as the company broke even while expectations were calling for a 12-cent loss. NOA is a Zacks Rank #1 (Strong Buy) that provides heavy construction and mining services to large oil, natural gas and resource companies. Earnings estimates are on the rise, but the most impressive gain has been 2018 expectations jumping to 46 cents from 25 cents over the past 60 days. The editor also likes NOA’s valuation. Read more about this new addition in the full write-up. 

Zacks Short List: Two stocks were short-covered in the portfolio this week and one of them was a double digit winner! China Lodging Group (HTHT) left the service today and brought a profit of more than 32.8%, while Live Nation Entertainment (LYV) was also removed. The new buys that replaced these names are Brown-Forman Corp. (BF.B) and Schlumberger Ltd. (SLB). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Options Trader: "There are still some sticking points to iron out, but it looks like Canada may make some concessions in granting greater U.S access to their dairy industry, while the U.S. may make some concessions on Chapter 19’s dispute resolution mechanism that Canada wants. 

"In spite of intense negotiations, Chrystia Freeland, Canada’s foreign minister, commented on the positive atmosphere after leaving the U.S Trade offices. 

"There’s still plenty of uncertainty surrounding trade and tariffs with China. But if the U.S can get Canada taken care of, which effectively is the missing piece for the new NAFTA, that will go a long way in calming trade jitters and spurring on the market even further." -- Kevin Matras 

All the Best,
Jim Giaquinto

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