Trade of the Day: Sonic Corporation (NASDAQ:SONC)

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Stocks ripped higher on Monday in sync with the falling dollar and a broad sense that the past week’s smackdown went a little too far.

U.S. equities of all stripes finished near their highs of the day (which is always a good sign), led by restaurants, casinos and homebuilders. Energy stocks were up but lagged on weakness in crude oil.

No single catalyst was responsible for the improved vibe, which led the S&P 500 to gain 0.8% and the Nasdaq to rise 0.9%. In fact, most of the economic news was on the “blah” side of the line. For instance, the April ISM report, which measures manufacturing, grew at a slower pace in April. Inventories fell, and factory employment worsened, with particular softness in energy-related jobs.

Overseas, it was pretty much the same. The China manufacturing index for April came in below expectations. The measure remains in expansion mode, but it fell back from March, and details like production and employment were weak.

Restaurants have been among the best performing companies in the United States over the past few years as a mobile population cooks dinner at home less and goes out more. Sonic operates and franchises a chain of quick-service drive-in restaurants in 44 states out of its base in Oklahoma City.

SONC Corp

Shares have been climbing steadily since mid-February and appear ready to jump out of a three-week base.

Buy SONC at around $35.35 or less.

Jon Markman operates the investment firm Markman Capital Insights. He also offers a daily trading advisory service, Trader’s Advantage, and CounterPoint Options, a service that helps individual traders make steady, consistent profits with volatility-related instruments.


Article printed from InvestorPlace Media, https://investorplace.com/2016/05/sonic-nasdaq-sonc/.

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