Stocks On Pace For Their Best Week Of The Year

Plus New Zacks Strong Buys for Friday, June 7 Profit from the Pros Stocks On Pace For Their Best Week Of The Year Stocks closed solidly higher again yesterday, and are on pace for their best week of the year. The market continues to cheer the Fed's rate cut considerations. Traders remain cautiously optimistic that a trade deal with the U.S. and China will ultimately be forthcoming. And there are growing hopes that the Administration will delay tariffs on Mexico, which are set to kick in as early as Monday. While no deal has yet been announced after two days of meetings between the U.S. and Mexico, President Trump said "a lot of progress was made" and that "something pretty dramatic could happen in the coming days." As I mentioned yesterday, nobody is overly concerned about 5% tariffs. But the quick acceleration to 10%, 15%, etc., would have an impact. But a delay, or better yet, never having to implement them at all, would be one less thing the market has to worry about. In the meantime, the market will be focused on this morning's Employment Situation Report. The market was a bit surprised by Wednesday's ADP Employment Report which estimated just 27,000 new private sector jobs were created last month vs. the 175,000 that were expected. While some consider the ADP report to be a precursor to the government's (Bureau of Labor Statistics or BLS) Employment Situation Report, which comes out two days later, others discount it, given its relatively poor forecasting track record. Nonetheless, it will be interesting to see whether the ADP report accurately foreshadowed the official BLS numbers this morning, or not. The consensus for this morning's Employment Situation Report are for 180,000 new jobs (173,000 in the private sector and 7,000 in the public), with the unemployment rate ticking up from 3.6% to 3.7%. Stocks are coming in pretty hot. But if the Employment Report can meet or beat the consensus, stocks could soar. Note, there is another school of thought as well – and that is, if the report comes in lighter than expected, that might give the Fed more reason to cut rates sooner rather than later. And that would likely be cheered by the market. (That could very well be the reason why the market completely shrugged off Wednesday's sharply lower ADP jobs numbers.) Either way, the employment report should take center stage today. But traders will also be listening for any news regarding tariffs on Mexico and a possible breakthrough before Monday's deadline. Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Profits in the Aftermath: Ends Sunday, June 9]( 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 1 day. Don't delay. Access to these picks closes midnight Sunday, June 9. [See Counterstrike Stocks Now >>]( Most Popular Articles from Zacks.com [7 Rewarding Low Price-to-Sales Stocks for a Winning Portfolio]( Price-to-sales is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. [Read More »]( [4 Transportation Stocks to Gain From Oil's Bear Market Entry]( Investors should buy transportation stocks as they are set to gain from oil's recent price decline. [Read More »]( [5 Green Energy Stocks to Buy Right Now]( The industry is one that will profit and grow from the transition to cleaner energy production over the coming years. [Read More »]( [ETFs Set to Soar on Rate Cuts Signal]( Fed Chair Powell has suspended the three-year monetary policy tightening program and has signaled his openness to cut rates if needed. [Read More »]( [Retail Stocks are on Sale: Should You Bite?]( With tariffs and recession fears hitting the retail sector, many retailers now trade with single digit P/Es. Is it time for value investors to take another 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: Alteryx (AYX)]( Companies and staff drowning in data and spreadsheets need this platform to harness their info and expand their time. [Read More »]( [New Zacks Strong Buys for June 7th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( [Customize Your Profit from the Pros Delivery]( Download our app for convenient on-the-go access to even more—daily 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]( 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 and Conditions of Service" disclaimer. [www.zacks.com/disclaimer](. 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 January 7, 2019. 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