Start the conversation
The S&P 500 and Dow Jones were both down in early market trading as investors continued yesterday's sell-off.
Then, Jerome Powell said the U.S. Federal Reserve intends to keep interest rates near zero through 2022. And he expects GDP to expand by 5% in 2021.
Stocks rallied across the board on the back on the announcement by the Fed Reserve Chair.
But only the Nasdaq closes the day in positive territory – up 1.2% and closing at a record high.
The S&P 500 was flat and the down was down 0.6%.
Here's what our experts – Chris Johnson and Shah Gilani – saw live at the open and close of the trading day.
- Chris remains bullish on Etsy Inc. (NASDAQ: ETSY), currently trading for $80.
- E-commerce has generated most of the retails sales during the lockdown and Etsy should continue its strength once we're on the other side of the pandemic.
- Chris' price target: $110.
- Chris is bearish on United Airlines Holdings Inc. (NASDAQ: UAL), which started the trading day at $44.60.
- UAL was downgraded to neutral from overweight by JPMorgan Chase & Co. (NYSE: JPM).
- Chris' price target: $35.
- He's also bearish on Delta Air Lines Inc. (NYSE: DAL), which started trading the day at $34 per share.
- The airlines have simply gone up too far, to fast, without any justification because passengers and sales clearly haven't returned yet.
- In fact, DAL just announced Q2 revenue declined 90% year over year.
- Chris' price target: $30.
- Chris' final piece of stock advice for the day: Don't bet against Elon Musk and Tesla Inc. (NASDAQ: TSLA).
- Musk announced it's time to start producing the Tesla semitruck at greater volume after Nikola Corp. (NASDAQ: NKLA) tripled in the past month.
- Chris has bet against TSLA in the past, and it has almost never worked out.
- Shah spent most of his live stream answering viewers' questions on individual stocks.
- Digital Ally Inc. (NASDAQ: DGLY), currently trading for $5.35.
- This company makes body cameras and is already up 552% since May 27.
- Avis Budget Group Inc. (NASDAQ: CAR), currently trading for $27.
- Shah thinks investors should be careful with this stock, even though it has less competition with Hertz Global Holdings Inc. (NYSE: HTZ) going out of business.
- Shah is bullish on Constellation Brands Inc. (NYSE: STZ), currently trading for $180.
- It's a well-run business that has had a nice 50% pop since the mid-March COVID-19 induced lows.
- Shah is slightly concerned about the debt load, but STZ is still a long-term buy.
Catch us tomorrow – starting LIVE again at 8:45 a.m. EDT with Chris Johnson, right here.
If you missed our live streams today, you can now replay them on our YouTube channel, here.
Learn How to Harness This Powerful Options Trading Secret for Yourself
Live from his private office in Florida, America's No. 1 Pattern Trader is revealing his most lucrative options trading secret yet.
It's the reason he's able to make such fast, profitable moves on companies like Netflix, Apple, Facebook, even Amazon – the reason he's able to see major paydays long before they happen.
We're talking about the potential to see the future of any stock on the market.
And Tom Gentile's going live to show you exactly how to do it.
Believe it or not, it's as easy as a few simple clicks of your mouse…
In no time at all, you could be lining up trade opportunities one by one and watching as your account grows bigger and bigger.