Here's our updated buy list of stocks that have been identified by our technical indicators as strong buys. If the overall market continues higher, these stocks should outperform:
*Buy and Sell signals are not recommendations and are a starting point for further analysis.
U.S stock indexes this morning are moderately higher, with the S&P 500 and Nasdaq 100 both at new record highs. Stocks are climbing on the outlook for additional stimulus after Treasury Secretary nominee Yellen on Tuesday endorsed President Biden's $1.9 trillion pandemic relief package. Better-than-expected company quarterly earnings results are also supporting stocks today.
Netflix is up more than +13% today at a record high to lead gains in technology stocks after it reported late Tuesday that it had 8.51 million paid streaming customers in Q4, well above the consensus of 6.06 million. Also, automakers are climbing today, led by a +4% jump in Ford to a 1-1/2 year high and a +1.4% gain in General Motors to a new record high after Deutsche Bank raised both stocks to a "buy," saying they see room for an upside 2021 guidance surprise.
Today's U.S. economic data was negative for stocks after the Jan NAHB housing market index unexpectedly fell -3 to a 4-month low of 83, weaker than expectations of unchanged at 86.
A bearish factor for stocks is the worsening Covid pandemic, which is forcing countries to tighten lockdowns that undercut economic growth and corporate profits. Germany today reported a record 1,734 Covid deaths, and on Tuesday, the country extended its lockdown measures until mid-February in an attempt to contain the pandemic. Globally, Covid infections have risen above 96.741 million, and deaths have exceeded 2.068 million.
The VIX S&P 500 Volatility Index ($VIX) this morning is down -1.14 at 21.10, falling farther from last Friday's 2-week high of 25.80. The VIX is down sharply from March's 12-year high of 84.83 but is holding above the late-November 10-1/2 month low of 19.51.