S&P and Dow announce five-day slippage ahead of CPI report

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The S&P and Dow Jones closed in the green Monday for the first time in six sessions, ending a losing streak that began after the disappointing September 3 jobs report and persisted throughout the week last (which only lasted four days due to Labor Day).

Meanwhile, the market is now gearing up for a busy week of potentially evolving data, which begins tomorrow with the most important inflation indicator, the CPI.

The Dow started this week climbing 0.76% (or nearly 262 points) to 34,869.63, while the S&P was up 0.23% to 4,468.73. These gains end five-day losing streaks for each index. However, the NASDAQ now has a four-day slippage after slipping 0.07% (or less than 10 points) to 15,105.58.

Apple (AAPL) gained 0.39% in the session after plunging 3.3% on Friday when a federal judge ruled against the company over its practices in the App Store. Apple has one of its big, flashy events tomorrow when we look at the iPhone 13 and other hardware.

Stocks are coming back from a difficult, but thankfully short, week which saw the Dow Jones plunge more than 2% while other major indices slipped more than 1.5% each.

“The streak of garbage set up by the Dow Jones Industrial Average is finally over,” Dave Bartosiak said in Surprise Trader (who added action on Tuesday despite entering the “quiet period.” See more below).

“After a frustrating week of day to day losses, the market needed a rebound. That hardly happened as the weekend move faded early. This negativity subsided at the end of the day and stocks picked up on the right foot. “

The big news tomorrow will be the consumer price index, which could move the market since inflation is a major concern for investors today despite the fact that the Fed qualifies it as “transitory”. Consumer prices are expected to rise 5.3% yoy and 0.4% mo. These would still be very high, but slightly below the previous July impression.

Friday’s PPI report showed wholesale costs for businesses were up 8.3% through August and 0.7% from the previous month.

And on Thursday we’ll have another big impression on retail sales. All of this data – jobs, inflation, retail – promises to make next week’s Fed meeting all the more important as President Jerome Powell and his friends try to decide when to start changing US monetary policy. pandemic era.

Highlights of today’s portfolio:

Actions under $ 10: The portfolio is again fully invested in 15 names with the addition today of Express (EXPR), a specialty clothing retailer focused on a younger audience with more than 500 retail and outlet stores nationwide. The winning history is mixed with two beats, one meet and one failure over the past four quarters; but the most recent report included a nice positive surprise of 106%. The increase in profit estimates pushed EXPR to an enviable Tier 2 status of Zacks (Buy). Growth expectations for this year are 57% on top of sales, but Brian is very excited for the business to return to profitability next year. This turn should generate more interest in the name. Read the full commentary for more information on adding EXPR today. In addition, this portfolio posted the best performance today, with Diana Shipping (DSX) increasing by 6.9%.

Surprise trader: How to build a better portfolio? Well, you can get exposure to solid spaces like Building Products – Home Builders, which is in the top 19% Zacks Industry Rank. That’s what Dave did on Monday by adding KB Home (KBH), which has beaten Zacks’ consensus estimate in 15 of the past 16 quarters. The company has a positive ESP profit of 1.12% for the quarter following the Wednesday September 22 bell, so the publisher expects this impressive earnings history to continue. Analysts are looking for $ 1.60, which would represent 92% year-over-year growth. Dave added KBH today with a 12.5% ​​allocation, while exiting ABM Industries (ABM) with a small loss. Learn more about today’s action in the full article.

Raw material innovators: We knew ProShares Ultra Bloomberg Natural Gas (BOIL) was a short-term investment when Jeremy added it on August 25. But the move of over 65% of the name since then might have been a bit of a surprise to the publisher. Nonetheless, BOIL hit its “and then some” target, so the portfolio sold it on Monday and took in that double-digit profit in less than three weeks. Jeremy says it might go higher, but he’s a little concerned about the overnight headlines that could bring it down quickly. The big concern is that governments might be forced to step in and stop the surge in natural gas, so let’s not be greedy. Additionally, the service took the top 5 today as EnLink Midstream (ENLC) grew 6%.

Black box trader: The portfolio replaced four names in this week’s adjustment. The stocks that were sold included:

• CBRE Group (CBRE, + 2.4%)
• Cleveland Cliffs (CLF)
• Réalogy (RLGY)
• Sonos (SONO)

The new purchases that filled these places were:

• Levi Strauss (LEVI)
• LKQ Corp. (LKQ)
• PVH Corp. (PVH)
• Textron (TXT)

Read it Black Box Trader’s Guide to learn more about this computerized service. Meanwhile, Range Resources (RRC) was the best performer on Monday, climbing 6.6%.

All my wishes,
Jim giaquinto

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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