Wall Street inches higher in pivot back to growth stocks

The Dow was down about a hundred in the morning, then up about a hundred in the afternoon to settle at close with a modest gain as did the S&P and Nasdaq. With unemployment benefits suddenly spiking and the day bringing mixed reports on earnings, investors backed away from the value stocks and back to growth with the big tech leaders pulling out front but, overall, it was close to a wash. Fortunately investors are now looking more at earnings than at macro data but as today’s expert states, “Earnings so far are better than expected. It’s a market that’s priced to its heights and there’s no room for mistakes.” 104 S&P companies have now reported with 88% beating estimates and the earnings forecast has been raised once again, today to an exorbitant 76.5%. Volume was below average at 8.2 billion. 

Wall Street ends higher, powered by robust earnings, economic cheer

It was another big rally today as the markets decided that the robust Q2 and solid economic reports instilled more optimism about the continuing recovery and that the Delta variant could be managed. It was especially encouraging that the cyclical stocks expected to do well in a recovery are the ones that were in most demand. 73 S&P companies have now reported with 88% beating estimates. Volume was a little below average at 9.1 billion. 

Wall Street bounces back on renewed economic optimism

All of the panic of the last two days suddenly evaporated today as the market went into “buy the dip” mode and charged the Dow a good way towards recouping yesterday’s losses and the S&P with its strongest one-day gain since March. All the recovery stocks did well which sent the message that, unlike yesterday, the economy was not going over the cliff after all. Q2 is going well with 91% of reports beating estimates and the earnings forecast has been raised once again, this time to an astonishing 72.9%. The best news is that volume is still above average at 10.6 billion, meaning the market consensus favors the optimism.  

Wall Street ends sharply lower as Delta COVID variant sparks new lockdown fears

What a rout!  The surge in the Delta variant finally came home to roost today and completely spooked the markets leaving some fresh doubts that the recovery is not going to be quick. It was the biggest sell off on the Dow in nine months and the biggest one day percentage drop in the S&P and Nasdaq in two months.  The surge is being caused almost entirely by the unvaccinated and there remains little hope of changing their minds. This was despite the greater news of 90% of Q2 reports beating estimates and Q2 profits now projected to grow 72%, quite a change from the original forecast of 54 percent. Volume for once was considerably above average at 12 billion. 

8 Robinhood Stocks Investors Are Buying in Q3

Again, to show that I can be fair even if I do have suspicions about the legitimacy of the Robinhood strategy, I submit below the Friday edition of US News Invested in which they list their picks of the best Robinhood stocks to own for Q3. These are all good companies. Use your own judgement. Once again, there is no summation. I suspect they're done for good.  Hope everyone had a great weekend. 

Bank of America's 8 Best Stocks to Buy in Q3

For your weekend reading, I again submit this week's issue of US News Invested with Bank of America's (that owns Merrill Lynch) recommendations of the best stocks to buy in Q3. For Sunday there will be one more little surprise coming from US News.  Stay tuned. 

Wall Street ends down as Delta variant drives fears

The markets turned sharply down today as COVID once again became the headline with the uptick over the Delta variant having investors worried about another wave and how that might impact the recovery. Once again there was a rush from tech with Amazon and Apple particularly hard hit and cyclicals like utilities and real estate getting a boost, real estate reaching a new record. Q2 projections have now been raised to 72% profit growth but as today’s expert said, “It’s been hard for the market to gain from these already elevated prices.” So Q2, in addition to showing healthy profits, must also show valuations continuing to remain high.  Q2 reporting next week will be coming from such stalwarts as Netflix, J&J, Verizon and Intel. Meanwhile, volume remains below average at 9.3 billion.