It’s been more than a year since the S&P 500 closed at its record high of 2,130.82. BofA Merrill Lynch’s Stephen Suttmeier and Jue Xiong consider what could happen if the popular benchmark trades a new high after such a long pause:
The S&P 500 has had 1,916 closing price-basis 252-day (52-week) highs going back to 1929. As of June 6, the S&P 500 has gone 382 calendar days without closing at a new 252-trading session high. Investors hate to chase a rally, but the data show that when the S&P 500 closes at a new 252-session high after not closing at a new 252-day high for 300 or more calendar days (a long pause), the implications are very bullish and new highs should not be feared.
23 new S&P 500 high after a long pause signals since 1929: The S&P 500 new high after a long pause signal has happened only 23 times going back to 1929 and generates well-above-average and median 10, 20, 30, 65, 130, 190, and 250-day returns. In fact, the 250-day average return after this signal is 15.6% (14.8% median), with the S&P 500 up 91% of the time. So, whether a new 25-session high happens now or later, the data suggest that a new high after a long pause is a bullish signal to watch for. We have passed the anniversary of the May 21, 2015, closing basis high of 2130.82 and the closing price high over the last 252 trading days is now the July 20, 2015, high of 2128.28. A close above this high would put the S&P 500 into the 2400-handle, using the 250-day average/median signal return as a guide.
Best High Tech Stocks To Watch For 2017: Home Depot, Inc. (The)(HD)
The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me (DIFM), and professional customers. The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, cabinet refacing, furnaces, and central air systems, as well as acts as a contractor to provide installation services to its DIFM customers through third-party installers. It primarily serves home owners; and renovators/remodelers, general contractors, repairmen, installers, small business owners, and tradesmen. The company also sells its products throug h online. As of December 31, 2015, it had 2,274 stores, including 1,977 in the United States, 182 in Canada, and 115 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.
- [By Ben Levisohn]
We wondered if Advance Auto Parts (AAP) just had a bad quarter or something more serious, whether there was beauty in being boring for Home Depot (HD), and just how risky Ford Motors’ (F) autonomous driving plan might be.
- [By Ben Levisohn]
Credit Suisse analystSeth Sigman and team see slowing growth for Home Depot (HD) and Lowe’s (LOW) when they release their earnings but also believe that should remain a bright spot in retail:
Michael Nagle/Bloomberg News
We see limited/less upside for HD and LOW in Q2relative to prior quarters, and expect sequentially lower growth, as iswell documented by now. But, we expect Q2 results to outshine whatseems to be a weakening broader retail landscape, and we believeresults improved throughout the quarter as data today confirmed.Further, these stocks have underperformed the market by ~300 bpssince reporting Q1. As such, if one wants retail exposure, HD/LOWshould remain a good place to be.
Shares of Home Depot have fallen 0.6% to $136.16 at 2:14 p.m. today, while Lowe’s has dipped 0.1% to $81.53.
- [By Jonas Elmerraji]
Home Depot (HD) is enjoying some strong performance in 2013. Shares of the world’s largest home improvement retailer have rallied more than 22% since the calendar flipped over to January, besting the broad market’s impressive climb higher over the same period. More recently, HD has been tracking sideways, but that doesn’t mean that the upside is over in this home improvement stock. Here’s how to trade it.
HD is currently forming a rectangle pattern, a setup that’s formed by a horizontal resistance level above shares at $80 and horizontal support below shares at $72. The setup gets its name because those two lines effectively “box in” shares of Home Depot right now. That makes it an “if/then trade.”
An if/then trade is a contingent trade that doesn’t have directional bias — in other words, the ultimate direction of the trade is determined by the direction that HD breaks out of its channel. So, if HD breaks above resistance at $80, then it’s time to buy shares. If they slide below $72 support, then it’s time to short. There’s no trade until one of those conditions is met.
Best High Tech Stocks To Watch For 2017: Cinemark Holdings Inc(CNK)
Cinemark Holdings, Inc. and its subsidiaries engage in the motion picture exhibition business. As of June 30, 2011, it operated 436 theatres with 4,983 screens in 39 states of the United States, as well as in Brazil, Mexico, and 11 other Latin American countries. The company is headquartered in Plano, Texas.
- [By Monica Gerson]
Cinemark Holdings, Inc. (NYSE: CNK) is projected to report its quarterly earnings at $0.46 per share on revenue of $699.23 million.
Aecom (NYSE: ACM) is expected to report its quarterly earnings at $0.72 per share on revenue of $4.55 billion.
5 Best Consumer Stocks To Buy For 2017: The Michaels Companies, Inc.(MIK)
The Michaels Companies, Inc. owns and operates a chain of arts and crafts specialty retail stores under the Michaels and Aaron Brothers names in North America. Its Michaels stores offer approximately 35,000 stock-keeping units in crafts, home d茅cor and seasonal, framing, and paper crafting. The companys Aaron Brothers stores offer approximately 6,000 stock-keeping units, including photo frames, a line of ready-made frames, art prints, framed art, art supplies, and custom framing. It also provides private brands, including Recollections, Studio Decor, Bead Landing, Creatology, Ashland, Celebrate It, Art Minds, Artists Loft, Craft Smart, and Loops & Threads. In addition, the company manufactures custom and specialty framing merchandise; and distributes gifts and decor products. As of March 17, 2016, it operated approximately 1,340 stores under the Michaels, Aaron Brothers, and Pat Catans brands in 49 states and Canada. Th e company was founded in 2013 and is headquartered in Irving, Texas.
- [By Ben Levisohn]
Guggenheim’sJohn Heinbockel and team argue that a “purging of space is necessary” in retail, and recommend hiding in “industry leaders who canprofitably gain share and are not especially expensive,” like Michaels (MIK), Tractor Supply (TSCO), Restoration Hardware (RH), Kroger (KR),and US Foods Holding (USFD). They explain:
- [By Lisa Levin]
Michaels Companies Inc (NASDAQ: MIK) reported better-than-expected results for its fiscal fourth quarter.
Michaels Companies posted quarterly earnings of $183.7 million, or $0.87 per share, compared to $146.4 million, or $0.75 per share, in the year-ago period.