Mid-cap stocks are giving us a low-risk opportunity right now. These stocks have a nice balance between Financials and blue chips. Mid-cap stocks have been trading sideways and are hovering around the 50-day moving average. And I have three promising stocks trading in the S&P 400 — and more in today’s stock market recap.
In today’s stock market recap, global markets are mixed this morning as Wall Street remains cautious ahead of the gross domestic product report.
The gross domestic product report came out this morning and shows our economy grew 6.4% in the first quarter. Analyst consensus was at 6.5%. This means the economy isn’t growing too fast and stimulus money will likely keep flowing.
Wall Street has been worried the economic growth was going to exceed consensus. This situation would have pressured the Fed to dial back its stimulus efforts and raise interest rates. As I’ve mentioned before, the Nasdaq is the most sensitive to interest rates because of high earnings expectations. A weaker-than-expected Q1 GDP would have dampened the Nasdaq’s attempt to turn bullish.
The bond market is at a resistance level to the upside and could break through with today’s positive GDP number. If the bond market rallies, interest rates may deflate slightly. With lower interest rates, companies’ earnings expectations will remain high, which may boost stock prices.
Cimarex Energy Co. (NYSE: XEC) is a crude petroleum and natural gas producer. XEC is focused on generating returns by gas exploration, exploitation and acquisition. It primarily operates in Texas, Oklahoma and New Mexico.
XEC is part of the S&P 400 and has a one-year return of 145.53%. It has a great relative strength score on my Stockfetcher code. XEC has recently pulled back from a high and the stock is sitting on its 50-day MA.
I’ve identified two more stocks for today’s video. One of them is a business process services company that helps advance customer-engagement strategies for clients. It has a one-year return of 193.67%. The third name is a chemistry solutions, equipment engineering and technology company for oil and gas producers. This stock has a one-year return of 196.26%.
In today’s video, I’ll go over the impact of the GDP on the bond market… which index remains neutral… which index is bullish once again… which sectors to stay away from… and the top industrial, engineering and energy stocks right now.
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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.