Subject: Dividend Growers Portfolio Trades This Week

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Rover's Weekly Market Brief
Rover

Indices

Dow Jones: 17,865.30 (+0.33%)

NASDAQ: 4,894.55 (-0.97%)

S&P 500: 2,096.07 (-0.15%)

Commodities

Gold: 1,275.90 (+2.66%)

Copper: 202.80 (-4.02%)

Crude Oil: 49.04 (+0.86%)

Economy

New jobless claims improved for the week of June 4th. There were 4,000 fewer new jobless claims for a total of 264,000 claims. The four-week moving average decreased to 269,000 claims. Continuing claims fell to 2.1 million, the lowest level since October 2000. The report is a bright spot after a very negative jobless claims report in the previous week.


Consumer sentiment remained strong in June. Consumers’ confidence in their personal finances rose to the highest level since July 2005 in large part due to wage increases. However, consumer expectations for the national economy in the next six months fell slightly from May. Inflation expectations for the next five to ten years were 2.3%, the lowest level in nearly fifty years.


Purchase applications for home mortgages increased a dramatic 12% for the week of June 3rd. Applications for refinancing jumped 7%. Despite the increases, purchase applications are down 19% in the past four weeks and down 6% from one year ago. The average interest rate for 30-year fixed-rate mortgages under $417,000 was 3.83%. Despite the low mortgage rates, the share of Americans who believe it is a good time to buy a home is at an all-time low of 29% on Fannie Mae’s monthly survey.

What to Watch for Next Week:

Wednesday June 15 — FOMC Meeting (announcement of target federal funds rate)

Thursday June 16 — Consumer Price Index (a measure of inflation)

Earnings Calendar

Mon
SAIC
ITRI
Tues
ALR
LFC
Wed
CIA
JBL
Thurs
ORCL
KR
Fri
EBF
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Dividend Growers: What We Traded This Week

Why We Sold Our Top Performer EFX

Equifax has been killing it, bringing in a 10.7% return in barely over two months. Would this streak continue deep into the future, or was it time to sell high, at the risk of missing out on further gains? A sell decision is never easy, but here is why we opted for the latter choice in this case.

New Stock on the Dividends Block: OC

Selling EFX opened up an opportunity for something new in the Dividend Growers portfolio. A search far and wide turned up basic materials stock Owens-Corning (OC). OC’s got growth, increasing profitability, manageable debt, and a new but increasing dividend payout—all for a price we liked. Get the details on this promising pick on our blog.

Why We Sold EFX
Why We Bought OC
 
 

Ideas: Go Small

 

This week in Ideas we feature small and mid cap stocks for you to peruse. Although smaller stocks can be riskier for a variety of reasons, the right picks will reward you handsomely. See what screeners and metrics we use to look for attractive small and mid cap stocks.

By the way, if you’re interested in small caps, be sure to check out our Discovering Great Small Caps webinar recording and notes for practical tips on how to not get burned in this relatively volatile area of the market. Also check out the Small Cap Safety view in the Library, for a collection of pertinent metrics.

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Thank you, as always, for being a Stock Rover member.

Wishing you a productive week,

The Stock Rover Team

www.stockrover.com

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