Stocks Add To Historic Rebound For Second Day In A Row

Profit from the Pros Stocks Add To Historic Rebound For Second Day In A Row Stocks staged a dramatic turnaround yesterday to end sharply higher for the second day in a row. After Wednesday's 5% gain and 1,000 point surge in the Dow, a bit of profit taking would not have been out of the question. Although, stocks began snowballing lower as the day wore on with the Dow shedding -611 points or -2.67% intraday. But near the end of the day, stocks made an about face and quickly started to reverse course. And within the last half hour, stocks had fully erased their intraday losses and turned positive. By the close the Dow had actually gained 260 points (that's an 871 point swing) or 1.14%, the S&P was up 0.86%, and the Nasdaq was up 0.38%. Two very impressive days, back-to-back. What was the catalyst? Same as Wednesday. Stocks are considered grossly oversold, especially given the robust economy. The market was due for a bounce. And with so many stocks trading at such tremendous discounts, it's no wonder we're seeing large money managers and professionals and pension funds coming in and buying. Adding to the feeling that maybe the worst is over were reports that the U.S. and China will meet face-to-face for more trade talks in early January. In the meantime, "intensive" phone calls will continue, according to China's Commerce Ministry spokesman. Trade tensions with China have been one of the biggest forces weighing on stocks. The more it looks like a deal will get done, the better the market will fare. But I don't want to get ahead of myself on trade. Especially given that the deadline isn't until February 28th. I would imagine there will be lots of good news and not so good news (rhetoric and otherwise) leading up to the deadline. But at the moment, it looks like there's good reason to be optimistic. At least enough to get much further away from recent lows. So as I've been saying, now is the time to start looking at all of the great bargains out there. There are amazing stocks selling at prices you could've only wished for a few short months ago. And some of these are trading at prices not seen in years. If the pros are getting in (aka the 'smart money'), maybe you should be too. Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Countdown Begins: Zacks Top 10 Stocks for 2019]( From a universe of more than 4,000 stocks, Director of Research Sheraz Mian is preparing to release the 10 best buy-and-holds for the coming year. His process consistently beats the market. This year, while the S&P 500 descended -8.2% through December 19, Zacks Top 10 Stocks for 2018 actually gained +12.9%. What's more, from 2012 - 2017 while the market boomed +126.3, his Top 10s reached an even more stellar +181.9%. With most Top 10s, you can check them out now, next week or next month. By contrast, these stocks are time-sensitive. Their potential upside is greatest at the time of their release Wednesday, January 2 at 11am ET. [Be First to See Them >>]( Most Popular Articles from Zacks.com [7 Low Price-to-Sales Stocks to Invest in for Solid Returns]( This underrated ratio is also used to identify a recovery situation or ensure that a company's growth is not overvalued. [Read More »]( [4 Industrial Stocks Set for a Strong Finish in 2018]( The manufacturing sector has held its ground this year despite impact from tariff and supply chain challenges. [Read More »]( [5 Business Services Stocks That Could Keep Winning Big in 2019]( Strength in finance & insurance, e-commerce, developments in the digital services and positive contribution from a firm labor market should boost the sector. [Read More »]( [5 Factors to Consider Before Investing in E-commerce Stocks]( A shift in the consumer preference driven by the technical advancement in the e-commerce sector continues to drive growth in the space. [Read More »]( [Where to Find Stocks on Sale]( The largest stock market sell-off in 10 years has created a buying opportunity if you know where to look. [Read More »]( Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>]( [Bull of the Day: Lockheed Martin (LMT)]( Sometimes the best defense is a good offense. It doesn't get much better than Lockheed. [Read More »]( [New Zacks Strong Buys for December 28th]( 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) [Get it on Google Play]( [Get it on Google Play]( [Terms]( | [Privacy]( | [Unsubscribe](