Markets

Stock Market Today: Rally Slows, But Nasdaq Resets the Ceiling Again

Nasdaq advances, but Dow and S&P 500 take small steps back

The market's red-hot run lost some steam on a relatively calm Tuesday that added little to the economic-rebound narrative.

Labor Department data from April showed that 7.7 million people were laid off in the month, down from 11.5 million in March; however, hiring cooled to record lows, and April job openings declined to 5 million from 6 million the month before.

Most of the Dow's components finished in the red as the industrial average snapped its six-day win streak with a 1.1% decline to 27,272. But the Nasdaq set fresh all-time highs for the second consecutive day, gaining 0.3% to 9,953, led by big moves in large components Apple (AAPL, +3.2%), Amazon.com (AMZN, +3.0%) and Facebook (FB, +3.1%).

Speculators emboldened by the market's recent rally received a sharp warning today. As we mentioned in our A Step Ahead e-letter, several companies that have filed for bankruptcy recently (or warned that they might) have doubled in share price over the past few weeks, but they fell back to earth today – Hertz Global (HTZ) plunged 24.4%, Whiting Petroleum (WLL) crashed by 32.5% and Chesapeake Energy (CHK) collapsed by 66.0% after its trading was halted for three hours.

Just remember: There's nothing wrong with a little speculation, but stocks like these can wipe out shareholders overnight.

If you do want to take on a bit more risk, consider more realistic growth scenarios where the research points to real potential. These 11 small-cap stocks, for instance, have plenty of analyst support – so, too, do these 14 under-the-radar tech plays.

But if you're simply looking to build wealth over time, you want to start from a place of strength. Big, burly blue chips with strong liquidity aren't just less of a bankruptcy risk in the worst-case scenario of a prolonged recession – they also have the most flexibility to go on the offensive as soon as economic conditions are right. Here are 25 such stocks to start digging into.

Most Popular

The Perfect Storm for Retirees
retirement planning

The Perfect Storm for Retirees

Today’s retirees could face a perfect storm because they are living longer and spending more time in retirement, while at the same time losing access …
April 18, 2021
The Wrong Way to Achieve Wealth
personal finance

The Wrong Way to Achieve Wealth

For some down-to-earth, basic advice on money and life, I have a book to recommend: “Your Total Wealth: The Heart and Soul of Financial Literacy.”
April 17, 2021
Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs
Coronavirus and Your Money

Child Tax Credit 2021: Who Gets $3,600? Will I Get Monthly Payments? And Other FAQs

People have lots of questions about the new $3,000 or $3,600 child tax credit and the advance payments that the IRS will send to most families in 2021…
April 14, 2021

Recommended

Will 2021 Be the Year for Value Stocks?
investing

Will 2021 Be the Year for Value Stocks?

It’s true that growth stocks have been hotter for years, but value stocks might be ready for their day in the sun. A series of factors, including a po…
April 16, 2021
How to Invest Green in a White-Hot Market, with Anne Kates Smith
Kiplinger's Investing Outlook

How to Invest Green in a White-Hot Market, with Anne Kates Smith

Sustainable stocks are going gangbusters. In an era of triple-digit gains for many market favorites (it's not just Tesla), we look for value options. …
April 15, 2021
Gen I: What Investing's New Class Looks Like
investing

Gen I: What Investing's New Class Looks Like

COVID-19 has been a disruptive force in the global economy. But it also has created opportunity for a new group of investors dubbed "Gen I."
April 9, 2021
Psst: If You’re Looking for an Unloved Investment Sector, How About Uranium?
investing

Psst: If You’re Looking for an Unloved Investment Sector, How About Uranium?

Uranium has become the forgotten fuel, but that could change … and if it does, there could be some interesting opportunities.
April 7, 2021