The performance of the top 400 S&P stocks, which is a good gauge for the broader market, shows choppiness and sideways trading. In the short term, the market is getting a false sense of security, creating vulnerabilities. In the long term, stocks are overbought. I’ve identified one real estate investment trust (REIT) and two stocks to take advantage of the housing market and protect against rising COVID-19 cases — and more in today’s stock market recap.
Stock Market Recap
In Friday’s stock market recap, global stocks are mostly lower on growing fears on fresh COVID-19 outbreaks after a strong month on Wall Street.
Corporate earnings have been mostly positive but bigger factors are driving the markets right now. Chinese government issues, growing COVID-19 cases and an uncertainty of the Federal Reserve’s stimulus actions are making traders wary.
The economy has grown to pre-pandemic levels according to the second-quarter gross domestic product report. European countries experienced robust growth of 13.7% for the same time frame. Investors grow more worried as countries around the world have started implementing pandemic restrictions, overshadowing positive economic data and earnings.
The Industrials and basic Materials sectors are showing potential upside. The Materials sector in particular has already started bouncing back and stocks have surpassed short-term resistance levels.
Roger’s Radar: 1 REIT and 2 Hot Stocks
Dick’s Sporting Goods Inc. (NYSE: DKS) has experienced increased demand this summer. Sporting goods stocks have fared well since the initial outbreak. People want to go camping, hiking and be outside… especially if we reach a point in COVID-19 cases where the U.S. government reimposes restrictions.
The second stock is a lifestyle and performance footwear company. It would also do well with increased outdoor activities, and would benefit from casual wear purchases in a stay-at-home environment. The REIT focuses on apartment communities. Houses are getting expensive and renting is becoming more attractive.
In this video, I’ll show you what could happen to tech stocks… whether bonds are set to drop… which sector offers the best opportunity for profits… an update on market sentiment… and three low-risk trade opportunities for choppy markets.
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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.