Advertisement

MARKETS: Gold wraps its worst week in 2 months, but YF Premium is bullish on Newmont (NEM)

Yahoo Finance's Jared Blikre joins Akiko Fujita to break down the day's price action in stocks as well as a long in Newmont (NEM), a Yahoo Finance Premium Investment Idea. Not a subscriber? Start your free trial to join future webinars live!

Video Transcript

AKIKO FUJITA: Just under 30 minutes left to go in the trading week. And we are seeing all three major indices in the red. The losses accelerating in this session. Let's bring in Jared Blikre for breakdown of the action. Jared?

JARED BLIKRE: Let's take a look at the S&P 500, what it's done this week, first, the Wi-Fi interactive. Let's see, today, we are down by session lows here. If we look at the five day price action for this week, we can still see that we're pretty close to the highs here.

ADVERTISEMENT

The only big movement we had was a big drop off on Wednesday. And looking over the last 13 days, the beginning of this leg here, and see we've really just been flagging near highs. And that sets up a very good opportunity to go higher next week, which it looks like we're going to have to wait for it to get that all time high in the S&P 500 if it happens, possible it doesn't.

Also want to take a look at some other markets here, specifically gold. Now, gold has had a very volatile week. And let's just reduce this to a five day. And we can see that some of the price movement, not only gold but also silver, really shook out a lot of people. But it's been pretty steady over the last few days.

That leads me into our Yahoo Finance "Premium investment Idea of the Day," which is Newmont Corporation, of course, that big gold miner. And we can see over the year they have had a decent run, up 46%. And Argus Research likes them.

They're reiterating their $72 price target, that would be up here, by their record highs only recently. And they're saying the shares have outperformed over the past year, rising 67%, compared to a 17% gain for the S&P 500. And, from a technical standpoint, the shares have been in a bullish pattern of higher highs and higher lows since May 2019. The company recently raised its quarterly dividend by 79% to a quarter, or $1 annually, for a yield of about 1.6%. Again, their price target is $72, that would be a 12% appreciation from the current levels. Akiko.