Profit from the Pros
Stocks Up 5 Weeks In A Row For Dow, Nasdaq, And Russell 2000
Stocks closed solidly higher on Friday. And while the 4-week winning streak for the S&P came to an end (albeit just barely), the winning streak was extended to 5 weeks in a row for the Dow, the Nasdaq, and the Russell 2000 Index!
In spite of a volatile start to the week last week where trade tensions unnerved the market, and traders began worrying about the economic impact of the partial government shutdown, the week ended on renewed optimism over this week's high level trade talks with China, and an agreement to temporarily reopen the government for the next three weeks while Congress tries to come up with a longer-term budget solution.
One constant in all of this has been the steady stream of better than expected earnings. And that's kept stocks well supported, even while the trade talk and shutdown headlines created anxiety.
Quite frankly, I think it's a testament to just how strong this economy is and the underlying fundamentals underpinning the market.
As I've said before, once the uncertainties of the trade talks are over and a deal is finally done, I think the market will soar.
But it appears that savvy traders aren't waiting for the official announcement (if and when it happens). They have been swooping in and picking up stocks at deeply discounted valuations and prices ever since the market bottomed late last year.
Of course, nothing is done until it's done. But for now, traders remain hopeful that an agreement will be made.
In the meantime, earnings season continues with another 608 companies reporting this week!
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
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