The stock market closed higher on Monday to close out its latest winning month and as investors prepared for a busy earnings week.
Overall, S&P 500 and NASDAQ rose 0.2% to 4,589 and 14,346, respectively.
Tweet of the Day
At one point last wk more than 89% of the stocks in the S&P 500 were above their 50-day MA.
Historically, signals above 90% have been quite bullish over the following year.
Higher a yr later 12 of 13 times and about to be 13 of 14.
This bull could still have plenty of legs. pic.twitter.com/6Rcc77Vpaq
— Ryan Detrick, CMT (@RyanDetrick) July 31, 2023
Chart of the Day
Here is the one-year chart of Arista Networks (ANET) as of May 24, 2023, when the stock was at $141.
Arista Networks makes network switches that help computer servers communicate in datacenters. The company provides Gigabit Ethernet to many companies that run high volume servers that require a lot of bandwidth. Gigabit Ethernet switches are the hardware that connects computer and servers in local networks. The faster the Ethernet switch, the faster data is transmitted between the computers and the local networks.
Arista Networks could be ready to become the next big stock market winner in the AI space. During the past month, AI stocks have been on fire, led by NVIDIA (NVDA) and Supermicro Computers (SMCI). NVIDIA makes the brains, then SuperMicro and Arista make the gear (such as servers) and software to run NVIDIA’s GPUs.
David Sharek, Founder of School of Hard Stocks, believes ANET stock is being held back by a so-so quarter the company just reported. Profits were just slightly higher than 2QtrsAgo, and ANET only beat the street by 9 cents a share, versus 20 cents 2QtrsAgo.
ANET is set to break out to a new all-time high tomorrow as the company beat the street after hours today.
ANET is my of the largest positions in the Growth Stock Portfolio and Aggressive Growth Portfolio.
