Third Day of Losses for Dow, S&P

Third Day of Losses for Dow, S&P

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• Brian Bolan and Ryan McQueeney Agree to Disagree on whether inflation is rising or in check
• Sheraz Mian and Brian Bolan answer your questions in Zacks Mailbag
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• Market conditions from both fundamental and technical views
• The full list of top-performing stocks over the past 30 days
• New stocks added to the ZU portfolio
• And much more

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

This week is shaping up to be pretty tough for the market. We’re more than halfway through, and neither the Dow nor the S&P have managed to close in positive territory. And the NASDAQ hasn’t gotten back to the plus side since its 7-day winning streak was snapped yesterday. However, we’ve seen this market make up a lot of ground in a hurry before…and there’s still a couple days left to the week.

The Dow had its worst day of the week so far on Wednesday. Its back under 25,000 with a loss of 1% (or nearly 250 points) to 24,758.1. The S&P was off 0.57% to 2749.5 and the NASDAQ slipped 0.19% to 7496.8. Fears over a trade war continue to pressure the market, especially after President Trump talked about cutting our trade deficit with China by $100 billion through tariffs.

“The sooner we get past this trade war narrative the better. While I truly understand why the market is worried about it, I don’t think we are likely to have one that’s bad enough to make an impact on the economy. Like most things in the market, I think this talk is a bit overdone,” said Dave Bartosiak, editor of the new Blockchain Innovators service, as well as Surprise Trader and Momentum Trader .

Home Run Investor was the only portfolio to make a move on Wednesday. Brian Bolan picked out a well-known department store giant that’s refocusing on beauty products. Read about this new move in the highlights section below:

Today’s Portfolio Highlights:

Home Run Investor: In its conference call notes, department store staple Macy’s (M) said it will start to focus more on beauty. Brian Bolan thinks that’s a great idea! Ulta Beauty has been a big success in retail for a while now, in part because it doesn’t have that much competition. The editor thinks such products will bring people into the stores and then have upsell opportunities from there. Plus, M is a Zacks Rank #1 (Strong Buy) with Zacks Style Stores of “A” for Growth and Value. It has also beaten the Zacks Consensus Estimate for the past three quarters. Brian thinks M can take a big piece of the beauty market and feels that the stock is “a runaway freight train in the making”. Read a lot more about this new addition in the full write up and get ready for another buy in the coming days.

Counterstrike:“Larry Kudlow will be named Top Economic Advisor to the President, filling the void left behind Gary Cohn. Kudlow is a popular TV personality and economist that CNBC watchers are very familiar with.

“Kudlow will do fine, I find myself agreeing with most things he says and he has been in the White House before with the Reagan administration. You would think the market would like the pick and we would have rallied after stocks were weak all day. However, the opposite happened as markets closed near their lows and the VIX spiked once again.

“The big problem remains an impending trade war with China. While Kudlow is a globalist, he is in agreement with massive tariffs on China. Trump is expected to outline up to $100 billion in tariffs within the week. This will certainly cause China to respond. Stocks will not like a trade war or high tariffs and they will not like the uncertainty that remains with future policy decisions on tariffs.” –Jeremy Mullin

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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