MARKETS: Nasdaq, S&P 500 close July at record monthly highs — YF Premium is bullish on Starbux (SBUX)

Yahoo Finance's Jared Blikre joins Myles Udland to break down the day's price action in stocks as well as a long in Starbux (SBUX), a Yahoo Finance Premium Investment Idea.

Video Transcript

MYLES UDLAND: Let's go over to Jared Blikre now for a look at this market that remains mixed as we head towards the week's and the month's final closing bell. Jared.

JARED BLIKRE: Yeah, we got those three big FANG stocks really propping up the market right now. But just about everything else has been under pressure most of the day, especially looking at energy and industrials, and now health care is down about 1%. But looking at the Dow, it's down only 12 per-- 12 points right now, and you got the NASDAQ up about 1%. S&P 500 up 3/10 of a percent. Here's a look at the week's price action. And you can see-- actually, I'm going to go back to last Friday because this is going to show us that the 3,200 level has really held over these last six trading days.

It was touched several times. And in fact, we see this broadening megaphone pattern, which doesn't happen that often. But when you combine it with what's happening in the VIX right now, pretty interesting because the VIX has held 24 support throughout this entire time. In fact, every time it's come down there, it's been a nice sell on equities. Have to see what happens with that next week. Then we got the 10-year T-note yield, and we'll take a longer term look at that. And we saw a pretty interesting day because we started the day down, and then we came up.

We exceeded yesterday's high, and now we're back down 54 basis points. That's right about where the second lowest point in the year is going back to April and May. Then we got 39 basis points down here. And just for reference, there is zero. Let's take a look-- quick look at our heat maps. We can see Apple up nearly 10% now, Facebook 7 and 1/2%, Amazon nearly 4%. But I want to get now to today's premium investment idea by YF Premium, and that is going to be in Starbucks.

And Argus Research-- this is a fundamental report-- they're maintaining their buy, and they're saying they have strong recovery potential. You can see they're still down 13.6% for the year. But they're looking at a $100 price target, and that would match their high from last year, 2019. So that would be basically tying their record high. Just a couple other notes by Argus. They're saying, we think that specialty coffee tea-- coffee retailers will be particularly hurt by the coronavirus pandemic and that some of the smaller chains will have to close, reducing Starbucks' competition.

They got a strong brand, clean balance sheet, robust mobile ordering and payment platform, so they expect Starbucks to continue the crisis-- surviving it better than other restaurant chains. Also saying, since they pay their employees hazard pay, they don't think they're going to have a problem getting staffed up when things do eventually reopen fully. You can always download a free-- or subscribe to a free 14-day trial of Yahoo Finance Premium at our website.