Strong Economic Reports: Bullish For The Economy And Stocks

Profit from the Pros Strong Economic Reports: Bullish For The Economy And Stocks The markets ended mixed yesterday as they continue to consolidate gains amid recent volatility, and build a new base. Once again, the financial media continues to point to an incremental rise in rates as hurting the market. Don't listen to that nonsense. A measured, well telegraphed rise in rates is good for the economy. True, too much could stifle it. But with the Fed repeatedly talking about 3 rate hikes this year (no surprise), that would only put the Fed Funds rate 0.75% higher at between 2.00 to 2.25%. That's not a market killing rate. It would take years (literally years) of a relentless series of rate hikes to derail the economy. And the economy would have to be on the verge of running out of steam to make that happen. Instead, the economy is gaining momentum, with GDP last year more than doubling the previous pace, this year expected to be even better, and 2019 even better than that, given the historic corporate tax cuts, which will usher in years of new prosperity, and the individual tax cuts which have only just begun to be felt by consumers. There will no doubt be more volatility as we head into the next Fed meeting in March where rates are expected to increase by 0.25%. But any pullback in the interim should be looked at as an opportunity to pick up your favorite stocks on sale. Remember, a pullback in stocks is a bargain if you believe the market is ultimately going higher. And I cannot come up with one credible scenario at this time for why it won't. In other news, yesterday's Weekly Jobless Claims came in better than expected shedding -7,000 new claims at 222,000 vs. views for 230K. The Kansas City Manufacturing Index posted "very solid growth" this month at 17.0, beating last month's 16.0 and expectations for 16.5. And the Leading indicators report also "points to robust economic growth ahead" with a m/m print of 1.0% growth vs. the previous month's 0.6% and views for the same. Those reports are three of MANY that continue to underscore the strength of this economy and this historic bull market. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Profits in the Aftermath: Ends Sunday, February 25]( If you've been in the market for any length of time, you've probably seen a perfectly good stock nosedive in price for no apparent reason. You may be looking at the aftermath of computer-driven high-frequency trading activity. Their favorite tactic is to trigger panic selling on a strong company. They buy as it bottoms and collect big gains as price returns to a normal level. Zacks Counterstrike portfolio scans the market for these Manipulated Price Drops – and turns them into profit opportunities for human investors. Right now, this strategy has detected a selection of stocks that appear to be on the verge of their comebacks. Quick double-digit gains could be seen in as little as 3 weeks. Don't delay. Access to these stocks closes midnight Sunday, February 25. [See Counterstrike Stocks Now >>]( Most Popular Articles from Zacks.com [4 Top Stocks to Buy With Impressive Earnings Acceleration]( Earnings acceleration helps spot stocks that haven't yet caught the attention of investors. [Read More »]( [Can Aerospace & Defense ETFs Keep Soaring?]( We remain positive on aerospace & defense ETFs due to boost in military spending in Trump's budget proposal and rising geopolitical risks. [Read More »]( [Aggressive Growth Stocks]( A look at two plays in the automotive sectors. [Read More »]( [Brush Off Walmart Woes, Retail Sales to Grow in 2018: 5 Pick]( Higher consumer confidence, record low jobless rate and solid wage growth are expected to boost retail sales throughout the year. [Read More »]( [There's One Big Problem with 'Synchronized Global Growth']( One sided markets aren't stable. [Read More »]( Sponsor [What's Today's Top Rated Mutual Fund?]( Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family. [Get started now>>]( [Bull of the Day: Deckers Brand (DECK)]( The maker of UGGs has found its mojo again. [Read More »]( [New Zacks Strong Buys for February 23rd]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( [Customize Your Profit from the Pros Delivery]( Connect with Us: [Facebook]( [Twitter]( [StockTwits]( Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com](emailto:support@zacks.com) [Terms]( | [Privacy]( | [Unsubscribe](