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2019 Rally Continues for Stock Market

It was another big week for weed stocks

Feb 15, 2019 at 2:41 PM
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The Dow Jones Industrial Average (DJI) is pacing for yet another weekly win, which would mark its eighth in a row -- and its longest win streak since late 2017. Stocks reacted positively to signs of progress on U.S.-China trade talks, as well as a spending bill to avoid another government shutdown in Washington, D.C. President Donald Trump begrudgingly signed the funding bill, but declared a national emergency to build a U.S.-Mexico border wall. Not even a surprisingly bad retail sales report could take the wind out of the bulls' sails, with the Nasdaq Composite (IXIC) on track for its longest weekly win streak since mid-2016.

FAANG Stock Named 'Top Pick'

After reporting earnings last week, Google parent Alphabet (GOOGL) was named a "top pick" at Citigroup, ousting fellow FAANG concern Amazon (AMZN). And speaking of Amazon, the company scrapped plans for a second headquarters in New York, caving after resident backlash. That was bad news for New York-based real estate investment trust (REIT) SL Green Realty (SLG). Elsewhere in the FAANG world, Apple (AAPL) stock is pacing for its longest weekly win streak in years, as the company gears up to unveil a new streaming service.

Earnings Winners and Losers

Of course, earnings remained in focus this week. Among the earnings winners were Freeport-McMoRan (FCX) and Activision Blizzard (ATVI), with fellow video game stock Electronic Arts (EA) also enjoying a big week on optimism over its "Apex Legends" game. Nvidia (NVDA) earnings were also well-received, and the semiconductor sector attracted option bulls on reports that China might offer to buy more U.S. chips as a proverbial olive branch. On the other hand, Teva Pharmaceutical (TEVA) and this cybersecurity stock tanked on weak guidance, and analysts punished this pair of stocks after earnings.

4 Stocks Expected to Double

Analysts expect big rallies for G1 Therapeutics (GTHX) and this pair of biopharma stocks. Benchmark analysts also predicted a 100% rally in Youngevity International (YGYI) stock, after the firm inked a deal to buy a maker of CBD processing equipment. Elsewhere in the marijuana sector, Canopy Growth (CGC) reported strong earnings, much to the delight of CGC options traders, and Aphria (APHA) rallied after a special review concluded the firm's LATAM Holdings are sound.

Short Holiday Week Ahead

Next week will be a holiday-shortened one, with U.S. markets closed Monday for Presidents Day. The action picks up after that with earnings reports from Walmart (WMT) and Roku (ROKU), not to mention a handful of consumer staples stocks. SAGE Therapeutics (SAGE) will also step into the earnings confessional, while this healthcare stock is sending up sell signals before earnings. Outside of the earnings spotlight, traders will digest the latest Fed meeting minutes.

 

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