Stocks traded lower to start the week as investors assessed an uptick in coronavirus cases and the pace of the economic recovery.
Shares of American Airlines Group Inc. (NASDAQ: AAL) were 6% lower after the company said it was seeing an additional $3.5 billion in new financing to improve the airlines liquidity as it grapples with travel restrictions caused by the coronavirus.
Apple Inc. (NASDAQ: AAPL) dropped over the weekend after the company announced plans to shut down stores in Florida, North Carolina, South Carolina, and Arizona upon rising levels of COVID-19 in these states. But after announcing it would ditch Intel Corp. (NASDAQ: INTC) to produce its own chips, the stock rallied 2.25% today and lead markets higher.
The S&P 500 finished the day 0.5% higher, the Dow 0.4% higher, and the Nasdaq 0.9% higher.
Here's what our experts - Chris Johnson and Tom Gentile - saw throughout the day, including some of their favorite stocks to trade now...
Chris thinks the gold trade is charging back as oil takes a break today:
89% of the NDX stocks are above their 50-day moving averages.
77% of the S&P 500 and 80% of the Dow are in the same category.
Chris' favorite stocks to own today:
Walmart Inc. (NYSE: WMT), currently trading for $120 - the company's push to enhance online sales with its Shopify Inc. (NASDAQ: SHOP) deal last week makes it a long-term buy and hold.
Price target: $135
Peloton Interactive Inc. (NASDAQ: PTON), currently trading for $51.
Chris has a $60 to $62 price target on the stock because its monthly active users are skyrocketing with the coronavirus lockdowns.
Chewy Inc. (NYSE: CHWY), currently trading for $50, is dominating online sales for pet owners.
Price target: $55
Nike Inc. (NYSE: NKE) and Crocs Inc. (NASDAQ: CROX) stores both had long lines when Chris visited the mall this weekend.
But Chris is worried COVID-19 could force them to shut down again soon.
Chris' "walk down main street" losers:
Under Armour Inc. (NYSE: UA), currently trading for $8.60, had nobody in the stores and risks being shut down again too.
Chris' price target: $7 and below.
L Brands Inc. (NYSE: LB), currently trading for $14.50, also had nobody in lines at the mall. Online sales are also weak.
Chris' trade recommendation: short the stock to $10.
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Tom is bullish on the market's current overall momentum and sees the S&P 500 trending higher this week.
Tom explained how to use the "percent to double" options formula in his live stream today.
It's the percent you need the stock to move to get your options contract to double in value.
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Tom just published a detailed fundamental and technical analysis on an interesting stock in a bearish trend to trade right now, Groupon Inc. (NASDAQ: GRPN).
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