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What To Make Of Tuesday’s Surprising Market Move

Sizing up 50 stocks for a booming market

   

Wall Street clearly made up for the shortened trading week by popping on Tuesday’s open and ending with another run to a record high on the Dow. Money that was previously on the sidelines has been pouring in and refuses to ebb. What has investors so bullish?

Well, the seemingly endless money pumping by several central banks has certainly helped. Many central banks are operating like a conductor of a runaway train and seemingly don’t know how to hit the brakes on their stimulus policies. As for the Fed, it recently stated that it plans to continue unabated with its $85 billion per month in Quantitative Easing. The fear is that a premature tightening of monetary policy could halt the economic recovery and cause a deflationary spiral.

The way things are shaping up, the Fed’s money pump will remain on until there is conclusive evidence of robust economic growth. I expect that the earliest this would occur would be four to five months from now. So Chairman Bernanke has no immediate plans of curtailing bond buying—which is great news for investors.

So this summer, we may in fact see smoother sailing than normal. It’s too soon to tell whether this will carry over into the typically volatile month of August, but I’m keeping a close eye on market barometers. Regardless of how the market swings this summer, you can prepare by continuously screening your stocks through my Portfolio Grader tool. A good place to start is by reviewing the 60 big blue chips that were just upgraded and downgraded this week. If you hold any of the stocks below, you may want to take note because they are making big moves.

Upgrades

Last Week’s Holds, Now Buys

Symbol Company Name Quantitative Grade Fundamental Grade
ABT Abbott B B
AXP American Express B B
BAC Bank of America B C
BMO Bank of Montreal B C
BNS Bank of Nova Scotia B B
ENB Enbridge B C
RY Royal Bank of Canada B B
SLF Sun Life Financial B C
STX Seagate Technology B C
TRI Thomson Reuters B C
WLP WellPoint C B

Last Week’s Sells, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ESRX Express Scripts D B
FRX Forest Laboratories C D
HOT Starwood Hotels & Resorts Worldwide D C
MJN Mead Johnson Nutrition D C
SHPG Shire PLC ADR C C
XLNX Xilinx D C
XRX Xerox D B

Downgrades

Last Week’s Buys, Now Holds

Symbol Company Name Quantitative Grade Fundamental Grade
ADBE Adobe Systems C C
AME Ametek C B
BEAM Beam C B
CNI Canadian National Railway B C
D Dominion Resources C D
DUK Duke Energy C C
EBAY eBay C C
EMN Eastman Chemical C B
KYO Kyocera Corp. ADS B C
MA MasterCard C B
MUR Murphy Oil C C
ORLY O’Reilly Automotive C B
PLD Prologis C C
PPL PPL B D
ROP Roper Industries C B
SAP SAP AG ADS C C
SPG Simon Property Group C C
SYK Stryker C C
SYMC Symantec B C
TGT Target B C
TJX TJX C B
UTX United Technologies C B
VZ Verizon B C

Last Week’s Holds, Now Sells

Symbol Company Name Quantitative Grade Fundamental Grade
AGN Allergan D B
AGU Agrium D C
ALXN Alexion Pharmaceuticals D B
AV Aviva PLC ADS D C
CF CF Industries Holdings D C
CHA China Telecom Corp. Ltd D C
DHR Danaher D C
ED Consolidated Edison D C
ERIC Ericsson C D
HAL Halliburton D C
INFY Infosys Ltd. D C
KSS Kohl’s D C
LVS Las Vegas Sands D B
NUE Nucor D D
QCOM QUALCOMM D B
RL Ralph Lauren D B
TTM Tata Motors D C
UPS United Parcel Service D C
VOD Vodafone D D

 


Article printed from InvestorPlace Media, http://investorplace.com/2013/05/what-to-make-of-todays-surprisin-abt-axp-bac-bmo-bns-enbg-market-move/.

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