Excerpt from Louis Navellier's Marketmail - 07/10/2018
The S&P rose 1.52% last week with the biggest surge (+0.85%) on Friday. NASDAQ did even better (+2.37%) while the Russell 2000 doubled the S&P 500 with a 3.10% gain. Earlier in the week, market oscillations were caused by air pockets that are common in the summer months and may continue in upcoming weeks. However, thanks to record stock buyback activity as well as dividend increases, the market continues to meander steadily higher. Whenever the market meanders higher on light trading volume, that is a very good sign, since it can potentially go up a lot more when trading volume rises when the second quarter announcement season begins.
If you drove a lot during the long holiday week, don't get mad about the high prices at the pump. Instead, you can profit from those higher gas prices. Refiners are expected to post very strong earnings from the highest "crack" spreads in approximately three years. Our stocks that receive a double-A grade ("A" in both Dividend Grader and Portfolio Grader) are dominated by refiners like Valero Energy (VLO), which should post exceptionally strong earnings from those spreads.
(Please note; Louis Navellier currently personally owns a position in VLO, Navellier currently owns a position in VLO for client portfolios)
I also bet that your weather has been sizzling hot lately! Not only is the US setting record-high temperatures, but so is Canada, Europe, the Middle East and Asia. This hot weather is helping boost natural gas demand, since much of the US has natural gas power plants designed to meet extraordinarily high air conditioning demand. That means the only weak energy commodity, natural gas, is now resurging, since the weather is expected to remain hot well into September.
Also, multiple "heat domes" around the world are creating tropical depressions, so it looks like this could be a record season for hurricanes, so re-insurance companies like Berkshire Hathaway may be at risk if we suffer more natural disasters, such as the new wave of fires out West.
(Please note; Louis Navellier currently does not own a position in Berkshire Hathaway, Navellier currently does not own a position in Berkshire Hathaway for client portfolios)
Overall, our authors deliver a side of the trade war story that you don't often hear, and our angle is beginning to resonate with investors who are tired of the scare stories that have dominated the press since January. Bryan Perry begins by showing how the bulls bought stocks big on the day the tariffs were added. Then Gary Alexander shows Trump's secondary goal of attacking product piracy as well as our trade deficits. Ivan Martchev shows how far more tariffs have been imposed than implemented, while Jason Bodner shows why America is still the best place for your stock money. I'll return to give you a media report on trade jitters, along with the latest jobs data.
Income Mail: The Bulls Want to Bust Out of the China Shop
Utilities: A Surprising Summer Sweet Spot
by Bryan Perry
Growth Mail: Of Doomsday Books and Articles, There Will Be No End
Case in Point: Trump's Tariffs are Not "Smoot Hawley II"
by Gary Alexander
Global Mail: What the Goldman Sachs Indicator is Telling us Now
Business Cycle Statistical Distribution
by Ivan Martchev
Sector Spotlight: When to Bet on "Impossible" Comebacks - In Sports and Stocks
Leading Sectors for First Half: Consumer Discretionary & Info Tech
by Jason Bodner
A Look Ahead: All the Scary Tariff Talk is Beginning to Backfire
US Job Growth Soars, But We Need More Qualified Workers
by Louis Navellier