Led higher by major tech stocks (and especially AAPL) the Nasdaq gained nearly 4% last week, closing at a new record high. Less impressive were the other leading indexes, though their gains were very positive as well as the S&P 500 added 2.4%, while the Dow rallied 1.3%.

Led higher by major tech stocks (and especially AAPL) the Nasdaq gained nearly 4% last week, closing at a new record high. Less impressive were the other leading indexes, though their gains were very positive as well as the S&P 500 added 2.4%, while the Dow rallied 1.3%.

The big-cap indexes remain generally resilient, but under the hood, the market continues to thin out, with fewer names participating in the rally. To be fair, we are seeing more growth titles either emerge or set up nicely after earnings, and of course, the market’s big-picture outlook remains favorable. But we’re comfortable staying relatively close to shore for now as the broad market decides which way to go. We’ve made a flurry of moves in the past couple of weeks and have one small buy today, but we’re holding a good chunk of cash as we look to see if growth stocks can get moving en masse.

Today’s addition is one of the world’s best engineering and construction firms in the highly specialized natural gas-fired power plant industry.

It’s a highly leveraged play on increasing U.S. energy loads and the expected, multi-year gas power plant buildout. If you want exposure to a picks and shovels play on AI, EVs and other electrification trends, this one is for you.

Enjoy!

A sizzling summer for stocks has delivered some strong returns for investors, though not all sectors have enjoyed the ride. In fact, seven of the 11 S&P 500 sectors have underperformed the benchmark index’s 8% return so far this year. As a result, there’s plenty of value still out there. So today, we set our sights on of those underperforming sectors: consumer staples. While the sector hasn’t trailed the market as much as a few others, we’ve found a usually steady, reliable stock that just touched five-year lows despite reporting record sales. The company dates back to the 1800s, and is a brand everyone knows – and has likely been in your house, your parents’ house, your grandparents’ house and your great-grandparents’ house. And now it’s on sale.

Details inside.

Despite big earnings from leading tech stocks, the good times came to an end last week for the market as the leading indexes fell all five days. For the week, the S&P 500 lost 2.4%, the Dow declined by 1.2%, and the Nasdaq dropped 2.2% … though the indexes bounced back nicely on Monday.

The big-picture market outlook remains very bullish in our view, but there’s no question we’re seeing more potholes, with more stocks and sectors chopping sideways in recent weeks—and then, last week, we saw sellers step up. Of course, today’s bounce was encouraging, but the odds of a volatile rest period are growing given the prior extended run. Right here, we’ll leave our Market Monitor at a level 7, though we’re mostly taking things on a stock-by-stock basis.

The best news from the last week came from earnings season, where there were a large number of positive earnings reactions among names with solid stories and numbers. Our Top Pick is a well-run company, and now growth is strong as AI demand ramps.

For a second straight year, an eye-poppingly bad July jobs report sent stocks tumbling. Last year, the selling lasted a few weeks, taking the S&P 500 down 8% and the Nasdaq down more than 13%. Is a similar correction in store this time around? This week will likely give us the answer. So far, however, it’s just one bad day, so we’ll keep our foot on the gas pedal by adding a high-growth semiconductor stock that is starting to show signs of life after a rough start to the year. It’s a new recommendation from Cabot Explorer Chief Analyst Carl Delfeld.

Details inside.

Despite big earnings from leading tech stocks, the good times came to an end last week for the market as the leading indexes fell all five days. For the week the S&P 500 lost 2.4%, the Dow declined by 1.2%, and the Nasdaq dropped 2.2%.

Despite big earnings from leading tech stocks, the good times came to an end last week for the market as the leading indexes fell all five days. For the week the S&P 500 lost 2.4%, the Dow declined by 1.2%, and the Nasdaq dropped 2.2%.

This is a big week for financial markets, with the Fed holding interest rates steady, $11 trillion worth of tech companies reporting earnings, a key jobs report, and a tariff deadline with China and India looming. The market pulled back as Chairman Jerome Powell indicated the Fed may not be ready to cut interest rates as expected.

But 7,392 miles from the canyons of Wall Street, an AI global governance plan was released at the World Artificial Intelligence Conference in Shanghai, which called for establishing an international open-source community through which AI models can freely be available. About 800 Chinese and international companies attended the summit.

Our plant-touching Cabot Cannabis Investor portfolio is up 29.2% since June 25. It is still down for the year. But it is performing better than the sector.

I believe it continues to make sense to stay long cannabis stocks, despite the big gains in the past month. Now, with the appointment of Terrance Cole to lead the Drug Enforcement Administration (DEA), cannabis investors are one step closer to learning how serious the Trump administration is about rescheduling cannabis.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Dollar Tree (DLTR), Intel (INTC), Kenvue (KVUE), Pan American Silver (PAAS), Paramount Global (PARA), UiPath (PATH) and SLB Ltd. (SLB).

Dollar Tree (DLTR) had a big week in the wake of earnings, hitting a new high for the year to date.

WHAT TO DO NOW: Continue to lean bullish, but pick your spots. Our intermediate-term indicators remain bullish, and the market’s consolidation so far has been tight and quiet, which is a plus. Leadership remains good-not-great, with many names acting well but also plenty of wobbles and some selling on strength, too. All told, we’re content to follow the playbook we’ve been using, adding as names emerge and averaging up if they start well. Tonight, we’ll fill out our position in Snowflake (SNOW), adding another half-sized stake, but we’ll hold 31% or so in cash and see how things go from here.

The market rally has gotten stuck in the mud for now. It will likely take some good news to really get it moving higher again.

Stocks have hugely recovered from the tariff Armageddon selloffs of early April. The index made up all that tariff ground and the S&P came within just a few percent of the high. But the rally has stalled over the past couple of weeks as positive headlines have been in short supply.

The market has leveled off since the huge recovery from the tariff Armageddon fears. And now, who knows.

The sticky issue to start the week is increasing trade tensions with China. A war of words is escalating between the two governments and threats are being made by both sides. It is being reported that President Trump will speak with Chinese President Xi today or later this week. Hopefully the two leaders will bring down the temperature.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Centuri Holdings (CTRI), GE Aerospace (GE), Intel (INTC) and Paramount Global (PARA).

GE Aerospace (GE) stands to benefit from the recent legal challenge to the White House’s tariffs.

The S&P 600 Small Cap Index popped right back up this week after selling off and landing on its intersecting 50- and 25-day moving average lines last Friday.

Despite the holiday-shortened week, it feels like a lot has happened at the macro level since last Thursday’s update.

Closely watched Nvidia (NVDA) reported its first-quarter earnings yesterday, beating expectations nicely on revenue despite restrictions on shipments of its H20 chips to China. The company posted revenue of $44.1 billion, up 69% from a year ago, but Nvidia expects to miss out on roughly $8 billion in sales of H20s to China in the second quarter.

Wall Street analysts expect stocks to be flat for the rest of the year. That’s according to a new Reuters poll, which surveyed 51 strategists, analysts, brokers and portfolio managers. Among them, the average year-end target for the S&P 500 was 5,900 – roughly in line with the current price, and essentially unmoved since the start of the year.

That’s not exactly exciting news, even if 5,900 would have felt like a win in early April, when the benchmark index dipped below 5,000 after President Trump’s now-infamous “Liberation Day” reciprocal tariff announcement. The rally since then has been impressive, but analysts aren’t confident we’ll get much more movement through the final seven months of the year.

The market is looking good. Sure, it pulled back last week. But not by much. After the huge spike it had, the lack of a more significant pullback is encouraging. Stocks also started this week with a big up day on Tuesday.

In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Centuri Holdings (CTRI), GE Aerospace (GE), Intel (INTC), Pan American Silver (PAAS) and Paramount Global (PARA).

Intel (INTC) is reportedly mulling a sales of its network and edge businesses as part of an ongoing focus on streamlining the company.

Pan American Silver (PAAS) stands to benefit from recent gold-to-silver ratio readings.

WHAT TO DO NOW: The market has pulled back a bit this week after a big recent run, but most things have taken the selling in stride. Further weakness can’t be ruled out, especially in the near-term but with the market digesting well and our intermediate-term indicators looking good, we have a few moves tonight. First, we’re going to sell our small position in Flutter (FLUT), but we’re also adding half-sized positions in Axon Enterprise (AXON) and ProShares S&P 500 Fund (SSO), the latter of which we’re averaging up in. We’re also placing Take-Two Interactive (TTWO) on Hold. Our cash position will still be around 47% after these moves.

The news cycle moves fast these days, as does the market’s reaction.

Last week, the big news was the 90-day ceasefire in the U.S. vs. China trade war. This week, it’s the passing of the reconciliation bill in the House and concerns over the deficit (the two are not unrelated).

Delcath (DCTH) reported before the bell this morning that Q4 revenue was $15.1 million (+2,701%) and adjusted EPS was $0.00. Revenue beat by $1.5 million (almost 11%). Gross margin was 86%.

Buy Second Half Reddit (RDDT)

It’s been a pretty ugly stretch lately, with numerous crashes in a number of growthy names. I’m far from confident that the selling is over, however, history has shown that a little buying when things seem bleak can pay off.

As I mentioned in this week’s update, CEG has some technical support around the $225 per share range. The stock had been flying high but has been under considerable pressure recently. CEG (currently around $227 per share) is down over 35% from the high made in late January.

Please sell our Recursion Pharmaceuticals (RXRX) recommendation, as after a strong start the stock has pulled back sharply.

Take Profit in Starbucks (SBUX); Sell American Airlines (AAL)

Sell Astera Labs (ALAB) and Cellebrite (CLBT)

FTAI Infrastructure (FIP), AvePoint (AVPT), Docebo (DCBO), Alkami (ALKT)

Our Cabot Top Ten Trader’s market timing system consists of two parts—one based on the action of three select, growth-oriented market indexes, and the other based on the action of the fast-moving stocks Cabot Top Ten features.