Short Week Brings Upside for Stocks

ROKU was one of the biggest winners once again

by Josh Selway

Published on Sep 6, 2019 at 2:45 PM

Stocks had an excellent few days, with the major indexes pacing for strong weekly wins thanks to upbeat trade headlines, even though new tariffs went into effect over the long weekend. Investors applauded news that U.S. and China trade representatives will meet next month, and this news seems to be enough to send the Dow Jones Industrial Average (DJI) on its way to a third straight daily -- and second straight weekly -- win. The price action is similar for the S&P 500 Index (SPX) and Nasdaq Composite (IXIC), even though today's jobs report was somewhat disappointing.

ROKU Highlights Weekly Winners List

Despite being a holiday-shortened week, there were still a few earnings reports that caught traders' eyes. One of the most notable gainers was athletic apparel firm Lululemon Athletica (LULU), which reported another strong quarter, and likely rewarded LULU options traders. A few software names made big moves, too, including Palo Alto Networks and Coupa Software, and this automaker and drone stock also joined the winners' table.

As for the week's biggest analyst calls, J.P. Morgan picked favorites out of the semiconductor space, and more bulls moved in on one social media concern. And while Oppenheimer is eyeing this Disney rival, it's been streaming sock Roku that's truly stolen the show with its relentless run to record highs.

Beyond Meat Bashed by Analyst

Turning to some of the negative news stories from the week, casino stocks were hit early on due to disappointing gambling data from Macau. Speaking of so-called vice stocks, one pot producer saw a huge price-target cut, while it was bankruptcy buzz that sent this drugmaker to new lows.

As for earnings losers, Slack shares certainly were big losers, and cloud stock Domo was crushed by a poor forecast. Analysts, meanwhile, took turns updating their ratings on a couple big bank stocks, while Beyond Meat was weighed down by a surprising bear note, similar to Planet Fitness stock.

Volatility Statistics to Know

Going forward, traders should dig into the data on what the outsized S&P moves could mean for the market, and check out this rare VXX signal. Not to mention, one metals ETF could be due for a wild month.

There are also plenty of individual stocks that the data says to watch. On the bullish front, transportation name UNP could rally, and long calls could be the play on this energy name. For put players, consider drug stock Puma Biotechnology.

From a broader view, the Fed could stay in focus with a few key inflation readings due out, while volatility fanatics should continue to monitor the VIX following its close below a key trendline.

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