EB Daily Market Report - Wednesday, February 19, 2020
Note
Today's DMR will be abbreviated as I'm preparing for today's "Top 10 Stocks" webinar, going through the selection process for each of our portfolios.
Special Event
Our quarterly "Top 10 Stocks" event is HERE! We'll get started later today at 5:00pm EST. Our room will open by 4:00pm. Here's the link, though you won't be able to access the room until we open it later this afternoon:
New Strong Earnings ChartList (SECL)
If you're a StockCharts.com Extra member or above, you can now download our latest SECL, which was updated over the weekend. We now have 320 companies on this list, with key price support levels annotated. Here's the link, along with the new password just beneath the link:
Password: Update320
If you're not a StockCharts.com member, you can sign up there for a 30 day free trial to fully experience the power of an EarningsBeats.com membership. Non-StockCharts.com members can still view the SECL one chart at a time, but you won't be able to download and save it. So you can't organize it, scan against it, etc.
Executive Market Summary
- U.S. equities are higher, breaking out to new records, as technology (XLK, +1.01%) and energy (XLE, +0.70%) lead
- Crude oil ($WTIC) has spiked 1.56%, propelling energy higher
- Financials (XLF, +0.65%) are also rallying with the 10 year treasury yield ($TNX) up slightly
- Economic reports this morning were excellent; housing starts and building permits for January blew away estimates and we saw a spike in inflation (PPI), which rose 0.5%, well ahead of the 0.1% rise expected
- Tesla (TSLA, +8.82%) is at a level that would represent another all-time high close
- Home construction ($DJUSHB, +0.67%) is benefiting from the strong housing numbers this morning
- We have one active trade alert, which nearly stopped out on Tuesday; it's down slightly again this morning
Market Outlook
Wall Street recognizes the importance of strong earnings growth in a historically-low interest rate environment as we continue to see the U.S. stock market repriced for this "goldilocks" economic environment. The best companies with the highest earnings growth are being rewarded handsomely and will likely continue to be. Our focus this afternoon will be loading our portfolios with these types of companies.
The NASDAQ is trading above 9800 for the first time in history and the S&P 500 is setting another record as well as it approaches the 3400 level.