EB Daily Market Report - Brief Update - Tuesday, August 27, 2024
Portfolio DRAFT
Our quarterly portfolio draft was held yesterday afternoon where we announced the stocks that would comprise each of our 3 portfolios - Model, Aggressive, and Income through November 19, 2024. I want to remind everyone that we are NOT Registered Investment Advisors and that these portfolios are provided for educational purposes. We do not provide recommendations for our membership, because risk tolerance levels/life situations are completely different from member to member. You should consult your own personal financial advisor before purchasing any securities that we discuss at EarningsBeats.com.
Brief Market Update
Thus far, it's a mixed bag out there as our major indices are bifurcated. The S&P 500 and NASDAQ 100 are both higher on the session while the red-hot Dow Jones cools a bit today and shows a minor loss. Small caps and mid caps are both down today as well.
Sectors are mixed as well. Financials (XLF) lead the way, although technology (XLK) is near the top of the sector leaderboard. Check it out:
Key Stocks
Well, the big news, of course, is that NVIDIA Corp (NVDA) will be reporting its latest quarterly results after the closing bell tomorrow. I always like to see how a stock is trading relative to its peers as it heads into its earnings report, so let's take a quick look at NVDA:
I know semiconductors ($DJUSSC) have struggled and both the DJUSSC and NVDA topped back in June, but we're talking about THE leader here. We're going to get some very meaningful news on semis with this NVDA report tomorrow, so let's pay attention to the earnings report, but ESPECIALLY the market's reaction to it. It'll provide us clues about the group as we move into September, historically a very difficult month for semiconductors:
Over the past two decades, semiconductors average losing ground in only two months of the calendar year - June (minor loss) and September. We cannot forget that the DJUSSC rallied from 9000 to 21000 from late-October 2023 through its June 2024 high. That's a 133% move higher in less than 8 months. Keeping perspective in mind is very important with a group like this. I absolutely LOVE the semiconductors group, but I know it's ok if the group were to sideways consolidate longer, because of those astonishing prior gains.
I also want to mention that Netflix (NFLX), an addition to our Model Portfolio during yesterday's DRAFT, is breaking out of a bullish bull flag pattern:
Happy trading!
Tom