Five Stocks to Watch in November

The U.S. stock market resumed its rally last month after declining in September, hitting new record highs to close the month of October. The market recovered significantly after dropping eight percent at the beginning of the month in the wake of a surprise increase in stimulus measures by the Bank of Japan announced last week. The S&P 500 closed at a record high of 2,018.05 on Friday, up +23.40 points or +1.2 percent, while the Dow Jones Industrial Average also closed at a record 17,390.52, up +195.10 points or +1.1 percent.

The Nasdaq Composite index closed at 4,630.74, up +64.60 points or +1.4 percent higher, its highest level since March of 2000. November promises to be an interesting month, after the Federal Reserve ended its third round of QE at its latest meeting last week.

Covance Inc. (CVD) – Yesterday's $6.1 billion bid for the medical research and development company by LabCorp (LH) landed Covance in our Five Stocks to Watch in November. The announcement of the deal sent Covance shares up +20.67 or +25.87 percent to $100.57 in heavy trading yesterday. The deal is expected to close by the first quarter of 2015 and will provide LabCorp with immediate access to the $141 billion biopharmaceutical research and development market.

Lakeland Industries Inc. (LAKE) – Last week the company announced it was increasing production of its protective suits after receiving orders for over 1 million of its suits in the wake of a worsening Ebola outbreak. The company announced on September 12th that it was increasing its manufacturing capacity for its specialty protective suits for healthcare workers and other people potentially being exposed to the Ebola virus. The stock has since sold off somewhat and is currently trading at $13.78 per share after rising to almost $16 per share last week. The stock was trading below $7 per share at the end of September.

Sprint Corp. (S) – After announcing a loss of -0.19 per share for its second fiscal quarter of 2014 yesterday — three times analyst estimates — the company's stock dropped to $5.38, off -0.82 or -13.23 percent in trading on Monday. The company reported an overall operating loss of -$192 million in the second quarter and announced plans to lay off 2,000 employees in an effort to reduce costs by $1.5 billion. The company's failed merger with T-Mobile will make it even more difficult for the company to compete with rivals ATT (T), Verizon (VZ) and a resurgent T-Mobile (TMUS).

J.P. Morgan Chase & Co. (JPM) – The company announced yesterday that it was being investigated by the U.S. Department of Justice on foreign exchange related matters according to a regulatory filing made by the bank. JP Morgan is now estimating legal costs of more than $2.4 billion and has set aside an additional $1.6 billion for its legal battles. J.P. Morgan is among 12 other banks in the U.S. and UK currently being investigated for colluding with each other to manipulate foreign exchange rates. The company said it could lose as much as $5.9 billion in litigation up from an estimate of $4.6 billion made three months ago.

Netflix Inc. (NFLX) – After dropping to a low of $333.00 per share on October 16th, after the company reported better than expected earnings, the stock has recovered somewhat trading up to yesterday's closing price of $388.41. The -25 percent drop in shares from $449 before the earnings release was due to a slowdown in new subscriptions.

Published on Nov 4, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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