I’ve identified three winners and two losers today as the short-term future of the stock market remains unclear. With real estate being hot right now, my three bullish stocks are likely to continue their upward trend — and more in today’s stock market recap.
The two bearish plays are stocks that made my top 5 list during the stay-at-home environment of 2020. These are good companies that traded too high, too fast. I expect them to trade lower in the short term — as we drive our economy forward amid the reopening.
In today’s stock market recap, global markets are trading lower this morning as investors weigh a flood of mixed data from countries’ first-quarter results and corporate earnings.
The U.S. economy grew at an annual rate of 6.4% in the first quarter, meeting analyst expectations. Jobless claims on Thursday declined slightly and solidified the downward trend we’ve seen the past few weeks.
Chinese economic growth continued this past quarter but showed signs of slowing. Japanese and Chinese markets are likely to see limited activity as “Golden Week” begins in the next few days.
The S&P 500 and Nasdaq continue to be overbought, with the S&P 500 making a swing high on Thursday. The Russell 2000 continues to outperform as it contains a lot more speculative stocks. On average, speculative stocks return 6.5 times over a two-quarter period, which is more than other stocks.
Sherwin-Williams Co. (NYSE: SHW) has been on a tear recently due to the explosive real estate environment and stimulus money flooding the market. It has moved from the $240 to the $270 level in the past few months.
As of 2019, SHW operated around 4,758 stores. Private and commercial real estate is blowing up right now, and SHW is likely to post huge numbers during this period.
Two self-storage REITs will also benefit from this real estate and business expansion environment. I expect both REITs to consolidate before making another strong vertical move. The two bearish stocks were popular last year and are making horizontal moves right now, but I expect them to soon fall..
In today’s video, I discuss whether the Federal Reserve data was positive or negative for the economy… whether U.S. stocks are ready to trade higher or consolidate… whether small caps have more upside to go… the top 3 stocks that are bullish…. and the bottom 2 stocks that are bearish.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.