U.S. equities notched another new record high on Thursday, pushing the Dow Jones Industrial Average ever closer to the 20,000 threshold as the post-election melt up continues.
The catalyst was another rout in the bond market which continues to pull money out of fixed-income into the stock market as investors chase returns. The impetus was a surprise announcement overnight that the European Central Bank would extended its bond-buying program more than expected (through year-end 2017) while also trimming the pace of monthly purchases from 80 billion euro to 60 billion.
This was a “dovish taper,” which, when combined with the expected Federal Reserve rate hike next week and the inflationary expectations surrounding President-elect Trump’s fiscal stimulus plans, further lifted long-term interest rates and thus, lower bond prices.
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In the end, the Dow Jones Industrial Average added 0.3%, the S&P 500 gained 0.2%, the Nasdaq Composite wafted up 0.4% and the Russell 2000 ended 1.6% higher.
Top High Tech Stocks To Own Right Now: Nabors Industries Ltd.(NBR)
Advisors’ Opinion:
- [By Wayne Duggan]
While Loop maintains a Buy rating on all of the stocks mentioned above, Guggenheim analyst Michael LaMotte isn’t quite so bullish on the sector. Earlier this week, LaMotte downgraded the following oil services stocks from Buy to Neutral:
Baker Hughes Incorporated (NYSE: BHI)
Fairmount Santrol Holdings Inc (NYSE: FMSA)
Helmerich & Payne, Inc. (NYSE: HP)
Nabors Industries Ltd. (NYSE: NBR)
Schlumberger Limited. (NYSE: SLB)
Halliburton
Superior Energy ServicesGuggenheim also cut its 2017 oil price forecast from $55 to $48/bbl.
- [By Craig Jones]
Pete Najarian was watching Nabors Industries Ltd. (NYSE: NBR). He said that the stock has been trading in a range between $8 and $18 over the last 52 weeks and although it spiked 2.82 percent on Wednesday, it's still close to the lower end of the range. Anticipating a move higher, traders were buying the June 11 calls for $0.30. Around 6,000 contracts were bought in the first half of the session. The trade breaks even at $11.30 or 10.78 percent above the current market price. Pete Najarian decided to buy the calls and he is going to hold them for 4-5 weeks.
- [By Ben Levisohn]
Last night, Weatherford International (WFT) reported a smaller than expected loss and announcing an alliance with Nabors Industries (NBR)–and the news was celebrated by the market.
- [By Craig Jones]
On CNBC's "Fast Money Halftime Report", Jon Najarian spoke about Nabors Industries Ltd. (NYSE: NBR). He said that somebody bought 6,500 contracts of the July 11 calls for $0.50 in the first half of the session. The trade breaks even at $11.50 or 16.28 percent above the current market price. Jon Najarian has a long position in the name and he is planning to hold it for a month.
- [By Jon C. Ogg]
Nabors Industries Ltd. (NYSE: NBR) rose by 22.3% to $16.11 on Wednesday. Its volume of 17.4 million shares was about 2.5 times normal trading volume. Nabors has a consensus analyst price target of $15.04 and a 52-week trading range of $4.93 to $16.50. The company has a total market cap of $4.6 billion.
Top High Tech Stocks To Own Right Now: NEW GOLD INC.(NGD)
Advisors’ Opinion:
- [By Dan Caplinger]
The stock market lost ground on Monday, sending major market benchmarks lower by more than half a percentage point. The Dow lost its grip on the 20,000 mark in the wake of concerns about economic growth and new U.S. immigration policy, and some believe that the broader geopolitical climate could have a negative impact on global commerce that in turn could start affecting multinational corporations’ business prospects. In addition, bad news from some individual companies weighed on the markets, and Transocean (NYSE:RIG), Rite Aid (NYSE:RAD), and New Gold (NYSEMKT:NGD) were among the worst performers on the day. Below, we’ll look more closely at these stocks to tell you why they did so poorly.
Top High Tech Stocks To Own Right Now: Federal-Mogul Holdings Corporation(FDML)
Advisors’ Opinion:
- [By Benzinga News Desk]
Mario Gabelli on Monday gained the upper hand in his battle to force Carl Icahn to sweeten his offer for a car-parts manufacturer. Icahn, who owns 82 percent of Federal-Mogul (NASDAQ: FDML), offered $9.25 a share for the remaining stake but fell way short after Gamco Investors boss Gabelli — who has a leading stake in Federal-Mogul — pressed for a higher price.
