Dow Returns to All-Time Highs…


The October episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see event” when Sheraz Mian, Eric Dutram, Tracey Ryniec, Neena Mishra, CFA, FRM, and Kevin Cook discussed the investment landscape from most every angle. Don’t miss your chance to hear:

• Eric and Tracey Agree to Disagree what’s likely to happen with interest rates to close out the year and for early next year
• Sheraz and Tracey answer your questions in Zacks Mailbag

• Eric and Neena choose one portfolio to give feedback for improvement
• And much more…

Simply log on to Zacks.com and view the October episode here. And please let us know what you think of the new format. Email all feedback to mailbag@zacks.com. 

After a two-day breather, stocks look ready to resume their record-breaking pace as we prepare for a new earnings season. In fact, the Dow is already there. The index climbed 0.31% on Tuesday to a new all-time high of 22,830.7. It got a big boost from Wal-Mart today, as the world’s leading retailer announced a $20 billion buyback. 

The other two indices of the Big 3 aren’t far behind their own milestones. All three hit intraday records at some point today. The S&P inched past 2550 again with an increase of 0.23% to 2550.6, while the NASDAQ spent much of the day on the negative side but finished higher by 0.11% to 6587.3. The market is gearing up for the start of earnings season, which gets underway later this week with a number of reports from big banks. 

Momentum Trader was busy on Tuesday as it sold one position for a double-digit winner and then “swung for the fences” with a new addition. Also, Short List swapped out two positions this week, while Stocks Under $10 picked up a biotech that just received a positive Phase 3 result. The highlights section below has a lot more on these moves: 

Today’s Portfolio Highlights:  

Momentum Trader: These are the days of the “what have you done for me lately?” trade, according to Dave. Apparently, Corcept Therapeutics (CORT) and Ternium (TX) haven’t been doing enough, so he sold both positions on Tuesday. The portfolio gets a nice return of 23.6% out of CORT in less than two months and a 1.4% profit from TX. 

The editor immediately went back to work by picking up “an oldie that hasn’t been a goodie in a long time”. He added a 12.5% allocation in Blackberry (BBRY), which used to be a phone company but is now a software company. The stock in threatening a breakout, and Dave wants to be onboard for the ride. He admits this one is “not for the faint of heart”. Read the full write-up for more on today’s moves. 

Zacks Short List: The portfolio swapped out two names in this week’s adjustment. It short-covered Alere (ALR) and ConocoPhillips (COP). The new additions that replaced these names are DigitalGlobe (DGI) and Liberty Global (LBTYA). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. 

Stocks Under $10: AcelRx Pharmaceuticals (ACRX) is a smaller biotech that has a positive Phase 3 result under its belt with the pain management drug Zalviso. Shares of the stock have been moving higher recently after taking a sharp dip a couple of months ago. Like many companies from its space, ACRX is losing money at present and its earnings estimates have been stagnant. But Brian Bolan thinks that will change. Revenue is expected to grow 188% next year with a 25% jump in earnings…and the editor plans to be along for the ride higher. Read the complete commentary for more specifics on this new addition.

Have a Good Evening, 
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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