Dow Ends Four-Day Losing Skid with 1.4% Advance

The tariff frenzy subsided enough on Monday to allow a more than 1% rally for the major indices. The Dow had the best performance of the Big 3...and it was about time after a four-day losing skid that led to a 3% loss last week.

The index began the day with a triple-digit loss, but had gained 1.37% (or about 336 points) by the closing bell to 24,874.8. The S&P climbed 1.1% to 2720.9 and the NASDAQ advanced 1% to 7330.7.

When President Trump first announced his tariff plans on Thursday, it added another layer of uncertainty on the market's concern of rising rates. It appears that the situation has calmed down for now, but we'll be hearing more about this issue in the coming days. In addition, it's a busy week for economic data, especially the jobs number on Friday. Will the market be able to recover last week's losses? Or are we going to add to them? Stay tuned...

The big news in the portfolios on Monday was the inaugural picks for our new Blockchain Innovators service. Dave started things off with four buys and will add a new round later in the week. Meanwhile, Counterstrike short-sold a stock, Momentum Trader added a sports boat maker, and Black Box Trader swapped out 6 names. Read more about these moves in the highlights section below, and learn all about profiting from the robotics/AI spaces in Zacks Confidential.

Today's Portfolio Highlights:

Blockchain Innovators: The first four picks of the latest portfolio in our “Innovators” series were released this morning. Dave plans to add 12 equally-weighted names initially, which means each of these stocks go into the service with an allocation of about 8.3%. The inaugural buys are:

• CBOE Holdings (CBOE)
• NVIDIA Corp (NVDA)
• Broadridge Financial (BR)
• Overstock.com (OSTK)

The editor will hold onto these names “until the wheels fall off”. Make sure to read his complete commentary to understand why these stocks can be considered blockchain plays. Get ready for the next round of buys on Wednesday and make sure to read this portfolio’s Guide to learn Dave’s plans on profiting from the blockchain.

Counterstrike: The $80 level is a huge support area for PriceSmart (PSMT) and, so far, it has mostly held. But Jeremy doesn’t think that will last. The company, which operates membership shopping warehouses internationally, has been in a clear descending triangle since 2015 and the bulls may no longer be strong enough to keep it above the mark. Plus, PSMT is a Zacks Rank #5 (Strong Sell) that missed the Zacks Consensus Estimate by 10% in its most recent report. The editor decided to short PSMT on Monday with a 7% allocation. Read the full write-up for more.

Black Box Trader: Most of the portfolio was swapped out this week as 6 names were changed. The stocks that left the portfolio today included:

• XPO Logistics (XPO, +8.8%)
• HCA Healthcare (HCA, +3.1%)
• Ply Gem Holdings (PGEM)
• Cosan Ltd (CZZ)
• C.H. Robinson Worldwide (CHRW)
• The Michaels Co (MIK)

The new buys that replaced these names are:

• Builders FirstSource (BLDR)
• Delek US Holdings (DK)
• Dynegy Inc. (DYN)
• Kohl's Corp (KSS)
• Nordstrom Inc. (JWN)
• Univar Inc. (UNVR)

Read the Black Box Trader’s Guide to learn more about this computer-driven service designed to take the emotion out of investing.

Momentum Trader: With spring on the horizon and the economy still strong, Dave expects people to spend more money on recreation this summer. Therefore, the editor is heading back to the water with a 12.5% allocation in Malibu Boats (MBUU), the Zacks Rank #2 (Buy) sport boat maker. The stock is approaching its 52-week highs and Dave thinks a breakout could be in the making. Read the complete commentary for more.

Zacks Confidential: The next breakthroughs in technology will come from robotics and Artificial Intelligence (AI). We’re already seeing news stories on self-driving cars and humanoid robots, but investors should realize that we are in the early stages of adoption. There's plenty of money to be made in these areas as numerous companies try to get an edge on the competition. In this week’s Zacks Confidential, Kevin asked Neena Mishra to explain how to invest in robotics and AI. Read her detailed article on these innovative areas and learn about a couple ETFs to help you participate in this growing industry: Here’s Why You Should Invest in Robotics & AI ETFs.

Have a Good Evening,
Jim Giaquinto