Market Moves You Need to See Stocks Closed Higher Yesterday, More Earnings On Tap Today
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks Closed Higher Yesterday, More Earnings On Tap Today Stocks closed solidly higher yesterday. The tech-heavy Nasdaq led the way with a gain of 1.11%. But the small-cap Russell 2000, and the mid-cap S&P 400 were not far behind with gains of 1.02% and 0.92% respectively. After 3 down weeks in a row (4 for the Nasdaq), the markets are ripe for a bounce. And yesterday's rally could very well be just the beginning. Going into yesterday, most of the indexes were in 'pullback' territory (defined as a decline between -5% and -9.99%). From their all-time high closes last month, the Dow fell by -4.57%, the S&P by -5.46%, and the Nasdaq by -7.06%. The small and mid-caps (from their recent high closes) fell by -5.61% and -6.88%. But pullbacks are common. Every bull market has them. In fact, stocks usually pull back about -5% roughly 3-4 times per year. And pauses like these help refresh and strengthen the market before their next leg up. The timing for a rebound is perfect too as earnings season kicks into gear this week. And that's because stocks typically go up during earnings season. Stocks soared last earnings season. And there's plenty of reason to believe we'll see the same again this time. (Quite frankly the earnings seasons for the rest of the year look promising given the strength in both sales and earnings estimates with Q1'24 expected to show earnings up 2.2% and sales up 3.4%; Q2 is expected to show earnings up 9.0% and sales up 4.5%; Q3 is expected to show earnings up 7.1% and sales up 5.0%; and Q4 is expected to show earnings up 12.3% and sales up 5.5%.) Between today and the rest of the week, we'll hear from 834 companies, including Tesla, Visa and Texas Instruments today, Meta, IBM and ServiceNow tomorrow, and Microsoft, Alphabet and Intel on Thursday, amongst many others. On the economic report front today, we'll get the PMI Composite report, New Home Sales, and the Richmond Fed Manufacturing Index. It'll actually be a very busy week of economic reports all week. But the report everybody is really waiting for is Friday's Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge. The latest CPI and PPI inflation reports showed disinflation slowing. And while the PCE is likely to show the same, the question is to what extent? Or does the PCE show something different, and could we start to see inflation start easing again? Either way, the odds are pretty close to zero that the Fed cuts on May 1. And the consensus is that the first rate cuts won't come until September. But since the Fed insists it will remain data dependent, all eyes will be on Friday's inflation report (as well as every subsequent inflation report until the cuts begin). In the meantime, we'll see if the market can build on yesterday's gains. See you tomorrow, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research Sponsor [See Zacks' Top Stocks for Free]( Starting today, you can get instant access to the latest picks from our time-proven strategies which since 2000 have soared far above the market. While the S&P 500 averaged +7.0% per year, our top strategies averaged gains as high as +44.9%, +48.4% and +55.2% per year. You'll also get our free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. [See Stocks Free »]( Today's Top Research [3 Energy Stocks to Buy Pre Earnings]( Energy stocks are on fire, and there is likely more fuel in the tank. [Read More »]( [Time to Buy Meta Platforms (META) and Other Social Media Stocks as Earnings Approach?]( Although, the broader advertising industry will not be immune to inflationary pressures among other economic headwinds, digital marketing has strengthened making social media stocks attractive. [Read More »]( [What's in Store for Magnificent 7 Stocks in Q1 Earnings?]( These megacap stocks were the top performers in 2023 and have continued to outperform the market. [Read More »]( [Are Higher Interest Rates Weighing on Earnings Growth?]( With Tech earnings set to dominate earnings headlines, Director of Equity Research Sheraz Mian explains to what extent elevated interest rates are weighing on profitability. [Read More »]( [Can the Record Rally in Japan ETFs Continue?]( The Japanese government has incentivized companies to improve corporate governance and use their capital efficiently, leading to significant improvements in dividends, share buybacks, and the unwinding of cross-shareholdings. [Read More »]( [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance. [Click for Free Tracker & Screener »]( [Bull of the Day: ACM Research (ACMR)]( Investors should keep their eye on this small semi-stock over the next few weeks. [Read More »]( [New Zacks Strong Buys for April 23rd]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App
Download our app for convenient on-the-go access to even moreâdaily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories
Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through April 1, 2024. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails
If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research
10 S. Riverside Plaza, Suite 1600
Chicago, IL 60606