Transportation is essential for economic expansion. So I’ve identified the top transportation stocks, plus one basic Materials stock that I like — and more in today’s stock market recap.
The Nasdaq and S&P 500 have bounced back the past two days, but aren’t in the clear just yet. The Nasdaq is still in what I like to call the “twilight zone,” so traders should be cautious on large-cap Tech companies.
In today’s stock market recap, global markets are higher this morning as Tech and financial stocks lead the two-day bounce.
Retail sales and consumer sentiment make up two-thirds of the economy. Retail sales were mostly flat from March to April. But April’s retail sales were about 27% higher than the same period in 2020.
Although the Nasdaq is pushing higher, I’d like to see it trade above its 50-day moving average for two consecutive trading days. So we need to be cautious until we get out of this scenario. Stay away from large-cap Tech and semiconductor companies.
Energy stocks took a hit on Wednesday as the Colonial Oil pipeline worries eroded. Financials, however, are doing well right now.
We have the fastest-growing commodity prices in 13 years. The Federal Reserve continues to back its view that rising inflation is transitory. I’m looking for a balance between the Fed pumping money into the bond market and it taking action if inflation starts running too hot.
The 10-year Treasury note slid to 1.65% from Wednesday’s 1.70%.
Transportation stocks are gaining steam as the economy heats up. United Parcel Service Inc. (NYSE: UPS) is up 137.68% in the past year, and 20.20% in the past month.
UPS operates a fleet of about 127,000 vehicles and owns around 58,000 containers. Countries around the world still lag behind U.S. and China economic recovery numbers — so there’s still more upside potential.
With our economy rebounding and strong consumer spending, transport stocks will benefit. In 2020, 14% of total sales were e-commerce (or online) sales. This marked a 3% increase from the previous year.
I have a few other transportation stocks I’m loving right now. One of them usually trades alongside UPS, while the two others are less known. The last stock I have for you today is in the basic Materials sector, and is also linked to the transportation sector. Rubber is essential in transporting goods, so make sure to check out this stock before it takes off.
In today’s video, I’ll go over the hottest transport and basic Materials stocks rising due to economic expansion… what I think the Nasdaq should do before we consider trading large-cap Tech stocks… the two important economic reports coming out today… and how to find a balance with inflation.
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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.