Stock Market Surges On Strong Jobs Report

TL;DR

The stock market finished the week with strong gains, highlighted by breakout performances from companies like Mercado Libre and LPL Financial. Beyond Meat, a recent IPO, showed potential but needs to form an IPO base before becoming actionable.

Transcript

happy Friday everyone its Alisa chorim and ken Shrieve here reporting to you live from our newsroom in Los Angeles and we have a look at the stock market today and on today's show we're taking a look at the chart action for mercado libre as well as LPL financials and recent IPO beyond meat but first let's take a look at the major indexes we finishe... Read More

Key Insights

• 💪 The stock market finished the week with strong gains, indicating positive investor sentiment.
• ❓ Breakout performances from companies like Mercado Libre and LPL Financial suggest continued growth in the market.
• ✋ IPOs like Beyond Meat can be high-risk investments, and it is crucial to wait for the formation of an IPO base before considering them.
• 🥳 Technical breakouts in recent days and weeks bode well for the current bull market.
• 💎 Hidden gems like LPL Financial often go unnoticed but can provide excellent investment opportunities.
• 🫰 The performance of indexes like Russell 2000 indicates potential growth for growth stocks.
• 🚄 Bulls are optimistic about the state of the market despite concerns about an aging bull.

Questions & Answers

Q: What were the major stock indexes' performance at the end of the week?

The Russell small-cap index was up about 1.8%, Nasdaq up 1.6%, S&P up 1%, and Dow up three-quarters of a percent.

Q: Why was the Russell 2000 index noteworthy?

The Russell 2000 finally broke out over the 1600 level, which was eagerly anticipated. The IWM, which tracks the Russell 2000, showed a breakout, indicating positive growth for growth stocks.

Q: Is the bull market still in its early stages?

According to portfolio manager Mike Webster, we could still be in the early stages of a bull market. Despite concerns about an aging bull, the recent performance of indexes like Russell 2000 and positive technical action suggest more potential for growth.

Q: What caused the surge in Mercado Libre's stock price?

Mercado Libre saw a 20% jump in stock price and heavy volume due to a strong quarterly report and a recent $750 million investment from PayPal. The company operates online commerce platforms in Latin America and has strong fundamentals.

Q: How did LPL Financial perform and why?

LPL Financial experienced a 13% jump in stock price and broke out of a base on its earnings report, which showed accelerating earnings growth of 77% for the quarter. The stock still looks good and has the potential for further upside.

Q: Should investors consider buying Beyond Meat?

Beyond Meat, a recent IPO, had a strong debut but closed near session lows. While it has exceptional sales growth, it is not yet profitable. It would be wise to wait for the formation of an IPO base before considering it as an investment.

Summary & Key Takeaways

• The major indexes, including the Russell small-cap index, Nasdaq, S&P, and Dow, all experienced strong gains to end the week.

• Mercado Libre saw a 20% surge in stock price and heavy volume after a strong quarterly report and investment from PayPal. It operates online commerce platforms in Latin America and has strong fundamentals.

• LPL Financial jumped 13% and broke out of a base on its earnings report, showing accelerating earnings growth of 77% for the quarter.

• Beyond Meat, a recent IPO, had a strong debut but closed near session lows. It has exceptional sales growth but is not yet profitable, making it a high-risk investment.