Stocks rose Tuesday and the tech-heavy Nasdaq rebounded by rising over 4% in trading as investors looked to buy the dip in the market from the recent selloff.
TheStreet's Katherine Ross and Jeff Marks discussed breaking news in the stock market. Marks spoke about how to trade Stitch Fix after earnings, the rebound in Cathie Wood's ETF and markets on Tuesday.
Stitch Fix: Buy Or Sell?
Stitch Fix (SFIX) shares plunged Tuesday, potentially erasing more than $1.8 billion in market value after the online fashion retailer lowered its full-year sales forecast following its swing into a second-quarter loss.
Marks said Stitch Fix is dealing with some supply chain challenges. "They are dealing with issues with cycle times because of the delays in shipping. This was also a very heavily shorted stock at one point. It's an attractive pullback and a pretty big selloff if you're a Stitch Fix believer, to buy the stock."
Cathie Wood and ARK Innovation ETF
Cathie Wood's ARK Innovation ETF rebounded Tuesday and jumped over 10% during trading, after falling almost 6% on Monday. Wood had earlier said she wasn't worried about recent drops because she was capitalizing on the selloff.
Marks said the key with Cathie Wood is that she has a very long time horizon and she is willing to be very patient with the companies that she invests in. "They may be unprofitable tech companies but they are investing in growth."
Marks advised investors to pick one or two stocks in sectors like 5G, cloud computing, AI, or digitization. "Don't circle the wagons and lean towards some of the more secular winners because that is where the growth is going to be."
Markets on Tuesday
Marks said it is a very strong day for tech today. "Money is rotating back into those technology names. I'm interested to see if some scalpers come in later today. I'm also watching the industrials and the cyclical too to see if they can keep their momentum going."
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