The Dow finally broke its eight-session losing streak on Tuesday, while the S&P ended a three-day slide of its own. If you want to know why the market was able to rally just a few days after the disappointing health care failure, you need only look at the consumer confidence numbers. In short, today’s reading was the best in nearly 17 years. So even though Washington may be fumbling around at the moment, the consumer -- who makes up about 2/3rds of the total economy -- continues to feel pretty good.

The S&P and Dow were each up 0.73% on Tuesday. The former index is now at 2358.6, while the latter is at 20,701.5. The NASDAQ was up 0.60% to 5875.1. The market is also getting some help from the Trump administration’s pivot from healthcare to other initiatives, such as tax reform and infrastructure spending. Stocks still want to advance, but the days of rallying on hope and promises are over. It needs to see some real action to make the next move higher.

Today's Portfolio Highlights:

Zacks Counterstrike: The portfolio added a couple Zacks Rank #1s on Tuesday that have sold off a bit after solid quarterly reports. Aegean Marine Petroleum (ANW) is a marine fuel logistics company that beat the Zacks Consensus Estimate by 5% in its last report. Shares subsequently slipped but its bullish setup held, prompting Jeremy to add a 10% allocation. Ebix (EBIX) beat by 13%, but then aggressively sold off after a 10% jump. The editor likes the risk/reward scenario for this software & e-commerce solutions supplier, so he bought a 13% allocation.

But the third move was something altogether different. Shares of GameStop (GME) are jumping today, yet this video game retailer is a Zacks Rank #5. Jeremy isn’t fooled, especially since the stock plunged after its last report when its guidance was slashed. The editor shorted the stock today with a 7% allocation. Read the complete commentary for more specifics on all of today’s moves, including a look at the charts.

Momentum Trader: Dave has had success with stocks that are on a slow but steady upward trajectory, so he added another one today as he replaces yesterday’s sells. The new addition is Inogen (INGN), a Zacks Rank #1 medical devices company that offers things like oxygen concentrators, external battery chargers and universal power supplies. The stock was added with a 12.5% allocation. Get all the technical analysis on this new pick in the full write-up.

Zacks Short List: This week's realignment had three swaps, including short covering LVLT (+2%), CF and VRTX. The new additions that replaced these names are Amazon.com (AMZN), Inphi Corp. (IPHI) and PTC Inc. (PTC). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide.

Surprise Trader: "No matter what seems to be happening in Washington, you just can’t keep the consumer down. Confidence spiked to 125.6 in March, which was the highest reading since the end of 2000. A variety of components in the index—such as expectations, present situation, and income—are all approaching highs or are at multi-decade highs, so the strength is pretty broad based.

"Given that consumers haven’t really received any relief from Washington, today’s results were an excellent sign. However, we should note that this is pre-AHCA data, so it remains to be seen if the gridlock had a negative impact on consumer confidence. Either way though, consumers appear optimistic, and it looks to remain good news for the economy in the near term." -- Eric Dutram

All the Best,
Jim Giaquinto

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