Today, May 26, 2022, the stock market went into rally mode with a follow through day on higher volume. Thus, market conditions have gone from down to up, and investors should look to be investing (for the time being). Still, this is just a “rally” indicator, and doesn’t mean the Bear Market is behind us.
In addition, 87% of the stocks on the New York Stock Exchange were higher on the day, which marked the 2nd 80% up day in two days. That’s a real signal that the end of this Bear Market could be here.
Overall, the S&P 500 was up 2.0% to close at 4058. The NASDAQ jumped 2.7% to close at 11741.
Chart of the day
Our Chart of the Day is this ten-year chart of Dollar General (DG) from last qtr. This chart was done March 28th with the shares at $226.
DG reported earnings last night that impressed investors, and sent the shares up 14% today to $222:
- Dollar General (DG)
- Reported: $2.41 vs. $2.82 = -15%
- Estimates: $2.33 vs. $2.82 = -17%
- Revenue: +4%
- Same Store Sales: Flat
Note profits were down mainly to tough comparisons from ta year-ago. I think retail stocks are the biggest bargains in the stock market today, and my Fair Value on DG is $275.
