Vacation Time. The U.S. couldn’t reach a trade deal with its neighbor to the north by a Friday deadline, but reports that talks would continue next week helped limit the damage, with only the Dow Jones Industrial Average finishing lower. The S&P 500 ended August up 3%. In today’s After the Bell, we…
That Wasn’t So Bad
After hitting news early in the week, Friday finished with a whimper.
The S&P 500 rose 0.039 point to 2901.52 today, while the Dow Jones Industrial Average fell 22.10 points, or 0.1%, to 25,964.82. The Nasdaq Composite rose 0.3% to 8109.54 today. The Dow rose 2.2% in August.
Todd Market Forecast’s Stephen Todd blamed the market action today on the trade talks between Canada and the U.S., which apparently ended without an agreement. But it couldn’t stop the major indexes from having a very good month. The S&P 500 rose 3%, which is supposed to be a bad month for stocks, Todd notes, and has gained 9.6% since the end April and the beginning of May, when we’re supposed to, you know, stay away. “It would make an interesting study to see how the strong seasonal period does if the preceding ‘poor period’ is higher,” he writes.
Someone did. September is historically the worst month for stocks, but it might not be as bad as its reputation suggests, according to Bespoke Investment Group. Yes, the S&P 500 has averaged a 1.05% decline during September going back to 1928, the benchmarks has averaged a gain of 0.2% when it’s up on the year heading into the ninth month. And when the S&P 500 is up more than 5% heading into September? It’s averaged a 0.36% rise. “With the S&P breaking out to new highs with a lower valuation, it’s hard to be anything but bullish here,” writes Bespoke’sJustin Walters.
The Hot Stock: Ulta Beauty Jumps 6.4%
Shares of Ulta rose 6.4% to $260, its highest since July 14, 2017.
Ulta reported a profit of $2.46 share, beating forecasts for $2.41, on sales of $1.488 billion, just below expectations for $1.49 billion. And while the company offered below-consensus third-quarter earnings guidance.
Credit Suisse analyst Michael Binetti sees three reasons Ulta found three silver linings in the news: Improving same-store sales; easing costs; and valuation that’s at a three-year low.
Investors certainly found something they liked.
The Biggest Loser: Goodyear Tire & Rubber Slumps 4.4%
Goodyear Tire & Rubber (GT) sunk to the bottom of the S&P 500 after getting an analyst downgrade.
Shares of Goodyear Tire & Rubber fell 4.4% to $22.69, its biggest drop since April.
Berenberg analyst Alexander Haissl cited an oversupply of premium tires for his downgrade.
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