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The market rose in four of the last five sessions, but it was too late to save September and keep its five-month winning streak alive.

Remember how we were all in such a good mood when this month began?

The NASDAQ and S&P were making new records almost daily amid an accommodative Fed and optimism over a coronavirus vaccine. Meanwhile, technology couldn’t be stopped!

And then came September.

The month really lived up to its reputation as the toughest period of the year for stocks. It even knocked technology out of its leadership position.

The market simply got too hot for investors. Soaring 50% in 5 months is enough to give anybody heartburn, especially with the coronavirus still lingering and even spiking, and without new stimulus from Washington.  

Therefore, the NASDAQ dropped approximately 5.4% in the 30 days, while the S&P was off about 4% and the Dow dipped 2.3%. It was the first monthly loss since March.

Fortunately, stocks have been moving mostly higher in the past week, including today. If it weren’t for these better-late-than-never rallies, the monthly losses would have been much worse.

As for Wednesday, the Dow advanced 1.2% (or about 330 points) to 27,781.70. The S&P was up 0.83% to 3363 and the NASDAQ rose 0.74% (or about 82 points) to 11,167.51.

Stocks moved sharply lower in the final hour, probably because Capitol Hill still can’t reach a deal on more stimulus. However, there is a plan on the table. Also, Speaker Pelosi and Treasury Secretary Mnuchin will continue talking.

Meanwhile, the ADP employment report stated that private companies added 749,000 jobs in September, which beat expectations of around 600K.

This ends two straight months of this report missing expectations. It’s also the first of two big jobs reports being released this week. The Government Employment Situation comes out on Friday.

See you later September! We actually got off rather easy considering the epic runup over the previous several months. Let’s see what October has in store for us…

Today’s Portfolio Highlights:

Commodity Innovators: Storms in the Midwest have beaten up a good grain crop and constrained supply, which we all know means prices will move higher. Jeremy capitalized on the situation with a couple of moves on Wednesday. First, he added Teucrium Soybean Fund (SOYB) since beans are already up 3% and will likely move even higher. The editor also picked up fertilizer company Nutrien (NTR), since this space will correlate with grain prices. The stock also pays on a nice 4.6% dividend. Jeremy sees SOYB as a mid-term name and NTR as longer term. Read the full write-up for more on today’s moves. 

Home Run Investor: Earnings estimates for Hibbett Sports (HIBB) moved sharply higher after this sporting goods retailer posted a positive earnings surprise of 69% in its most recent report. As a result, the stock is now a Zacks Rank #1 (Strong Buy). Brian is most impressed with a 75% topline growth combined with a low valuation. And there could be even more earnings improvement moving forward with margins jumping to 5.4% from 1.6%. Read the full write-up for a lot more on today’s addition of HIBB.

Have a Good Evening,
Jim Giaquinto

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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