MARKETS: YF Premium Investment Idea: Deere & Company (DE)
Yahoo Finance's Jared Blikre breaks down some of the features of the Yahoo Finance Premium package.
Video transcript
- We're watching the markets. The indexes are taking some swings. Up at bat is Jared Blikre. What's going on?
JARED BLIKRE: Lots of volatility here, playing off some headlines. We just got news that Mike Pompeo says the US can no longer certify that Hong Kong-- Hong Kong is independent from China. And this could affect trade relations. So we saw a big downdraft briefly, but markets have now regained those losses.
Looking at the NASDAQ 100, tech has been underperforming, as has biotech, for the day. We can see the big-cap bank stocks largely underwater here, Facebook down 3%. And if we sort by performance, we can see a trend continuing from yesterday, where the winners are those beaten-down travel stocks like American Airline, Ulta Beauty Retail, and some others. United also up about 3%.
But to the downside, the tech stocks, including chip stocks, and especially software, just cannot catch a bid. And that's something we're going to have to keep an eye on because, without those stocks, it's going to be very difficult to climb to new highs here. So let's take a look at the price action for the day.
Here is the Dow, still up over 200 points. NASDAQ down 1%. S&P 500 just barely up about 1/10 of a percent. Here is the intraday price action, and here is that swing. Looks kind of small right here, but it was pretty violent. Happened in seconds. So we know that we have two factors moving this market, basically the vaccine with regard to a coronavirus and any other concurrent treatments, and also trade headlines. So that's what we've got to watch out for here.
Over the last five days, we can see we've just dipped into yesterday's range. Could be a fakeout, could be a bull trap similar to the one we had to the downside a week ago last Thursday. But we'll have to see what happens there.
I want to change direction here and turn to our Yahoo Finance Premium idea of the day. And this is going to be Deere. And we can see-- well, that's not Deere. Let's go to the Premium page. And this is Deere. And this is from Argus Research. They like the bullish trend that it is-- is in, but they say even recent weakness offers a buying opportunity. We can see they have just now taken out those April highs, and even though the market is down today, it is still outperforming.
Some other notes by Argus Research here, they do see demand for Deere's forest and construction products has slumped sharply due the-- due to the coronavirus, and earnings are now declining. But they see a return to continued earnings power in the quarters ahead, as new management focuses on factors it can control and the company's customers carry out the essential work of promoting food security. They have a long-term target of 185. That would be a record high. You might want to adjust that for profit purposes. Adam?
