Dow and S&P Cruise to Record-Breaking Weeks

Tilray and Teva Pharmaceutical were two stocks that made headlines this week

Josh Selway
Sep 21, 2018 at 2:16 PM
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The U.S. stock market was able to overcome trade concerns from early in the week to soar to fresh record highs. Both the S&P 500 Index (SPX) and Dow Jones Industrial Average (DJI) ended the week on four-day win streaks while grabbing their highest closes ever, as investors shrugged off China's retaliatory tariffs on the U.S. On the other hand, the Nasdaq Composite (IXIC) struggled to keep up, due mostly to tepid price action out of the tech sector.

Dow Rises on CAT, Bank Strength

But taking a closer look at the Dow's outperformance, much of the upside, since it was trade-related, came from Caterpillar (CAT) and Boeing (BA). Also contributing were blue-chip bank stocks, thanks to a rising 10-year Treasury yield. This all has the Dow set for its best week in two months, after the index flashed a rare signal.

Weed Stocks Consume Wall Street

One of the biggest stories of the week, however, was the erratic trading in weed stocks. Companies as large as Coca-Cola (KO) to as small as this penny stock got up in the cannabis craze, but Tilray (TLRY) stole the show with its wild session on Wednesday. The shares peaked right at $300 that day despite being halted twice, but at last check were set to close the week near $135.

FAANG, Chip Stocks Hurt Tech Sector

The weak action out of the tech sector was highlighted by FAANG stock struggles and a sharp pullback in semiconductor shares on Friday. For example, Facebook (FB) was hit with another bear note after the being called the "most controversial company" J.P. Morgan Securities is covering. Even Amazon (AMZN) closed the week lower, despite announcing a number of new Echo devices in a surprise event.

TEVA Stock Has Huge Week

There was a lot to unpack out of the healthcare sector, which seems to always be the case. Overall, the sector had a strong week, evidenced by another weekly win for the Health Care Select Sector SPDR ETF (XLV).

One of the most notable gainers was Teva Pharmaceutical (TEVA), thanks to Food and Drug Administration (FDA) approval for the company's migraine drug. Medtronic's (MDT) latest M&A move generated some buzz later in the week, while gene editing stocks also made a reappearance.

Fed Meeting Coming Up

Next week's schedule is all about the Fed's September meeting. As such, we've compiled a list of stocks to target around the event. One of those names was chipmaker AMD stock, which one analyst thinks could keep gaining due to Intel's (INTC) struggles.


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