The markets just closed out what proved to be a volatile first half of the year.
Federal Reserve rate hikes, escalating trade tensions and tumbling foreign markets all helped push the Dow Jones Industrial Average to a 1.8 percent loss in the first half, the worst first-half performance in eight years; U.S. equity futures pointed to a lower open in premarket trading Monday.
So now what?
Money managers are identifying four stocks to watch in the second half of the year, and just told CNBC’s “Trading Nation” what’s on their radar.
Dow stocks on watch
For Michael Bapis, partner and managing director at the Bapis Group at HighTower Advisors, Intel is at the top of his mind. He’s bullish on the chipmaker for the long term, and expects upside into year-end. Intel shares sank 10 percent in the last month, but Bapis says the name is a leader within the semiconductors, poised to rise again.
Intel year to date
Merck year to date
J.P. Morgan year to date
Rotation plays
Others say a rotation will play out between growth and value stocks, and beaten-down sectors like consumer staples and utilities will stage comebacks. Gina Sanchez, CEO of Chantico Global, is particularly focused on the utilities-tracking XLU ETF. Within the group, she likes Exelon, an energy generation and delivery company.
Exelon shares have risen 8 percent year to date, outperforming the broader space.
