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S&P Retakes 2800 on Third Straight Day of Gains

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The Boeing news is understandably taking a lot of the market’s attention right now, but let’s not forget that we’re having a fantastic week so far that saw the S&P reclaim 2800 on Wednesday.

The index was up 0.69% to 2810.92, while the NASDAQ improved 0.69% to 7643.41. Both of these indices now have three-day winning streaks, which is quite a reversal from closing in the red all of last week.

Tech continues to lead the way. The FAANGs again all closed in the green with Netflix (+1.4%) and Amazon +1.06%) out front.

And the Dow came along for the ride as well after closing lower on Tuesday due to the Boeing situation. It was up 0.58% (or nearly 150 points) to 25,702.89.

The index almost squandered its gains after the FAA grounded all 737 Max jets in the U.S. Several other countries had already made the move, including China, the U.K. and, earlier today, Canada. The administration made the move after new evidence showed similarities in the recent crashes of Ethiopian Airlines Flight 302 on Sunday and Lion Air Flight 610 in late October.

Boeing had lost more than 11% on Monday and Tuesday combined, but seemed like it would bounce back a bit on Wednesday until the FAA’s decision. The stock plunged again but managed a positive close of 0.46% today.

So the market has largely shrugged off the Boeing news, which is reminiscent of the positive sentiment that permeated most of January and February. It feels like we’re in a much better mood than last week, even though there have been no trade breakthroughs and concerns persist over slowing growth around the globe. The market still needs a new catalyst, but obviously believes that last week’s 2%+ selloff was a bit too much.

Today's Portfolio Highlights:

Home Run Investor: The market is looking way better than it did last week, which has Brian Bolan in a buying mood. On Wednesday, he picked up Methode Electronics (MEI), a Zacks Rank #1 (Strong Buy) manufacturer of electronic components and subsystems. The editor believes this company is set for a nice post-earnings drift higher after a strong quarterly report that included a positive surprise of more than 36%. It has an average beat of more than 22% in the past four quarters. But most of all, Brian wants exposure to a stock that should be “off to the races” when a trade deal with China is announced, which he thinks is right around the quarter. Read the complete commentary for more on MEI.

Counterstrike: "Buyers were full throttle once more as this week has seen nothing but buying since Monday at the open. The answer to the excitement isn’t clear, but bulls are speculating a rosy picture ahead, despite the potential for a China trade deal to go wrong.

"I don’t mean to keep bringing up China while the market rips, but not much has changed, at least much that is publicly known. The market could be drifting higher as both speculators and those in the know are expecting a deal any day now.

"Resistance didn’t necessarily break today, but it is under extreme pressure. Any good news and the bears will have to make a run for it. I’m interested to see how the market reacts over the next couple days. If the S&P gets over 2825, its hard not to get bullish again."
-- Jeremy Mullin

Options Trader: "Another solid day for the market with all of the indexes up again, and the S&P and Nasdaq putting in new highs for the year!

"A strong economy, fantastic jobs market, an accommodative Fed, and optimism for a U.S.-China trade deal continues to power stocks higher.

"It was also great to hear Goldman Sachs CEO, David Solomon, say that the “chance for a recession in 2019 is very low.”

"Of course, we already knew that. We’ve been saying that all last year. And this year too. But it’s still great to hear others echo the same sentiment."
-- Kevin Matras

Have a Great Evening,
Jim Giaquinto

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