As usual, last week’s headlines were filled with anything but positive news. Trade war scares, partisan politics and out-of-context economic figures hid an incredible story. In this episode of Matt McCall’s “Moneyline” podcast, he discusses what was at the heart of this silver lining: semiconductor stocks.Based off the PHLX SOX Semiconductor Sector Index, as tracked by the iShares PSLX Semiconductor ETF (NASDAQ:SOXX), semiconductor stocks hit all-time highs last week, powered by a breakout in some big names. But almost no financial media outlets covered this success. Why? McCall uses this to illustrate the dangers in turning to the likes of CNBC and Fox Business for investment advice. Instead, just read the headlines for entertainment.
So what had semiconductor stocks soaring? Nvidia (NASDAQ:NVDA) led the way, reaching an 11-month high last week. Nvidia stock has several catalysts. The 5G rollout, data centers, high-tech gaming and self-driving cars all will use Nvidia chips. Additionally, with rumors of a U.S.-China trade war resolution on the way, any sign of peace could boost NVDA and its peers.
But NVDA didn’t lead the breakout alone. Texas Instruments (NASDAQ:TXN), Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and ASML Holding (NASDAQ:ASML) also contributed to last week’s record. As 5G keeps growing, make sure to keep your eyes peeled on semiconductor stocks.
Unfortunately for investors, McCall argues that the financial press also obscured the truth behind September’s retail sales numbers. Instead of focusing on the positives, many reported that September’s sales were down 0.3% from August. But, year-over-year, September’s numbers were up 4.1%.
True, auto sales and receipts at service stations both fell. But McCall points out that the service station figure most likely reflects cheaper gasoline. Plus, the core retail sales figure doesn’t count those categories due to their historical volatility. On the brighter side, clothing and furniture sales were both up, as were sales from restaurants and bars. To McCall, one thing is very clear: The U.S. consumer is still very healthy.
So instead of listening to the naysayers, do your own research. That’s why McCall prefers to do his own boots-on-the-ground exploring. Through this practice, he’s found several stocks to buy. One name is a growing star in the retail space — and another sign the consumer is still happy and healthy.
Tune into “Moneyline” for more information on Canadian-based Aritzia (OTCMKTS:ATZAF) and more insight on last week’s gloomy headlines.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.