NASDAQ Up Nearly 9% in this Four-Day Rally

The S&P and Dow have gained more than 1% in each of the last four sessions... and sometimes much more than 1%. But it’s the NASDAQ that has the best performance so far this week.

Whatever investors may be feeling about the still winnerless presidential election, they’ve got to feel pretty good about those results! It’s especially satisfying after last week’s sharp selloffs, which ruined the month of October.

On Thursday, tech was once again leading the way. The NASDAQ soared 2.59% (or about 300 points) to 11890.93. It jumped almost 4% yesterday and now goes into Friday with a surge of about 9% for the week.

The FAANGs were all higher again. In fact, Apple (AAPL) and Netflix (NFLX) had gains of more than 3%, while Facebook (FB) and Amazon (AMZN) rose over 2%.

The other two major indices each advanced approximately 1.95% today. The S&P is now at 3510.45, while the Dow added another 542 points to 28,390.18. Both are up 7%-plus through these four days.

The market continues to breathe a sigh of relief that the “Blue Wave” didn’t happen on Tuesday and the legislature will remain divided. It’s the first bit of clarity we’ve had on a major issue in a while. Hopefully, we’re closer to the end of this pandemic as well.

Last week’s jobless claims came to 751,000, which is only about 7000 better than last week and another example of an economic recovery that’s slowing down. However, this marks the third straight week below 800K.

A new stimulus package might help with this lethargic recovery, which is what Fed Chair Jerome Powell said in his press conference. The Fed left extraordinarily low interest rates unchanged in its just-completed two-day meeting, as was widely expected.

Stocks have already gained more in these past four days than they lost all of last week. Let’s hope for a strong finish tomorrow.

Today's Portfolio Highlights:

Commodity Innovators: The miners are taking off again, so Jeremy added more exposure to the space with a Brazilian name. Vale (VALE) is the world’s largest producer of iron ore, iron ore pellets and nickel. This Zacks Rank #2 (Buy) reported solid earnings numbers with a 16% EPS surprise, but also has a strong dividend and lots of cash. In other words, it’s a value play, which will make it a unique stock as commodity markets experience their cyclical uptick in the new year. The editor added VALE on Thursday with expectations for a long-term stay. He has price targets of $16 to $18. Read the full write-up for a lot more on this new addition. In other news, this portfolio had a top performer today as Albemarle (ALB) rose 12.8%.

Surprise Trader: Why would any company release their earnings on Friday the 13th? Well, maybe superstition falls to the wayside after reporting two consecutive quarters of strong beats with a positive Earnings ESP of 9.24% for the next one. Such is the case for Spectrum Brands (SPB). This Zacks Rank #2 (Buy) offers a portfolio of leading brands in several product categories like residential locksets, plumbing, electric shaving, small household appliances, lawn care products and more. Last quarter’s beat was more than 41%, while the previous quarter’s was in the triple-digits. And it has a good chance to continue outperforming when it reports again before the bell on Friday, November 13. Dave added SPB on Thursday with a 12.5% allocation, while also getting out of Schneider National (SNDR). See the full write-up for more on today’s action.

Technology Innovators: The chip names are looking really good right now and this portfolio needs new positions. Therefore, Brian knew where to go for today’s promised addition. On Thursday, he added Veeco Instruments (VECO), which makes thin film process equipment that’s primarily sold to make electronic devices. The company has beaten the Zacks Consensus Estimate for 13 straight quarters. And it has an average surprise of 61% over the past four. Rising earnings estimates have made VECO a Zacks Rank #2 (Buy). The editor also likes its valuation and the upward trajectory of margins. Read the full write-up for more on this new addition.

Marijuana Innovators: Looks like Dave added Aurora Cannabis (ACB) at the right time. He picked up this Canadian medical cannabis company two days ago, which was just in time to capitalize on the stock’s 41.5% surge today! Needless to say, that was easily the best performer among all ZU names on Thursday. Innovative Industrial Properties (IIPR) also made the top 5 list with an increase of 16.7%. Marijuana stocks did well today after five more states recently voted for legalization measures.

Income Investor: "The divided-government scenario, and a split Congress, has been the preferred outcome for the stock market for years now. This would help curb most efforts to raise corporate taxes or regulate Big Tech, for example, and investors are also assuming that the trade war with China wouldn't get any worse with a scenario like this.

"You could see this enthusiasm in the sectors that gained these past few days, from technology and communication services to healthcare. During the trading week, Apple (AAPL) and Amazon (AMZN) both rose over 9%, while Microsoft (MSFT) jumped 10.3%; Facebook (FB) gained 12%." -- Maddy Johnson

All the Best,
Jim Giaquinto

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