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Profit from the Pros By Kevin Matras Executive Vice President
Stocks Up Again For The Fourth Day In A Row
Image: Bigstock
Stocks finished higher again yesterday with the S&P and Nasdaq up for the 4th day in a row, and up 7 out of the last 8 trading days.
Pretty impressive.
Since the March 23rd lows, the Dow is up 41.3%, the S&P is up 42.5%, and the Nasdaq is up 46.0% (and is actually up 7.9% for the year)!
Stocks are in a confirmed bull market. And in spite of the big gains we've already seen, it looks like it's just getting started.
More and more states and cities are expanding their reopening plans. And people are eager to get out of the house and begin to resume a more normal life. And that includes spending money at their favorite places.
There is great pent-up demand waiting to be unleashed.
And that's great news for the businesses that have suffered during the lockdown, great news for the employees who can finally go back to work, and great news for our economy as everybody is lifted up as our country prospers.
And we're already seeing some good news creep back into some of our reports.
The ADP Employment report showed 'just' -2.760 million private payroll jobs were lost last month. Not great news. But it was far better than the -8.663 million jobs that were expected. We also saw the prior month's job losses trimmed from -20.236 million to -19.557 million.
Although, Friday's Employment Situation report is the jobs report everybody is really waiting for. And while it's expected to be ugly (with another -7.725 million jobs lost, and a 19.8% unemployment rate), it's a snapshot of a point in time that we are rapidly moving away from.
More good news was seen in the PMI Services Index with a print of 37.5, beating expectations for 36.9.
And the ISM Non-Manufacturing Index also came in better than expected at 45.4, beating the consensus estimate of 44.0.
We're still likely to get some crummy reports in the coming weeks and next month. But again, those are backwards looking. And the market has already turned its attention forward to the positive news of our economic recovery, and forecasts for unprecedented 3rd quarter GDP growth.
And that's why stocks have soared. And why it looks like there's a lot more upside to go.
So make sure you're taking full advantage of it.
On a separate note, if you're looking for new stock picking ideas in an industry also poised for historic growth, be sure to read our latest article on the booming Marijuana Industry.
These stocks are definitely more speculative in nature. But the number of companies currently offering, or are slated to offer cannabis-related products is growing. This is no longer about investing in pot growers. It's about consumer products, drinks, food, medicine, and more. And with marijuana sales legal in Canada, 33 states, and D.C., it's only going to get bigger.
To learn more about this explosive industry, be sure to read our latest commentary...
That must stop. U.S. homeland security can't rely on Chinese lithium anymore. That's okay, because there's a world-class lithium mine waiting to be tapped in Nevada. One young company controls it.
How can the stock market be near another all-time high with a pandemic and 40 million unemployed? Secular bull markets don't care about headlines. Read More »
No doubt the unprecedented level of fiscal and monetary stimulus has backstopped the equity markets and started this extraordinary rally, but what continues to drive it? Read More »
Legalized marijuana, with almost unimaginable profit potential, has swept over all of Canada, down through 33 states plus D.C. Mexico is finalizing plans to legalize pot for both medicinal and recreational purposes.
While the pandemic subsides, global sales are climbing fast and this new industry is predicted to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Not since the Repeal of Prohibition in 1933 has there been such a release of pent-up demand.
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »
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