Stocks Mixed, But The Positive Economic Reports Keep Rolling In

Plus 5 New Strong Buys for Today [Kevin Matras] Profit from the Pros By Kevin Matras Executive Vice President [Zacks Investment Research] Stocks Mixed, But The Positive Economic Reports Keep Rolling In Image: Bigstock Stocks closed mixed yesterday with the Dow and the S&P finishing lower while the Nasdaq finished in the green, making it 4 up days in a row. Economic concerns and second-wave virus concerns continue to be debated. Regarding the virus, everybody knew there would be an increase in cases once we reopened. So none of this should be a surprise. And since the increase in cases is largely commensurate with an increase in testing, some of the hand wringing is all for naught. But, of course, we'll have to continue to see how this plays out in the coming days and weeks. But so far, nobody is talking about any undue stress on the healthcare system. Nor is anybody talking about a return to lockdown mode if cases continue to rise. In fact, more and more states and cities are expanding their reopening. And that includes New York City. They will be entering Phase 2 of their reopening next Monday. Given their impact on the national economy (roughly 8% of the country's GDP), their expansion is a benefit to all, both psychologically and materially. More good news was seen on the economic front. MBA Mortgage Applications rose 8.0% last week with the Purchase Index up 4.0% and Refi's up 10.0%. Mortgage demand is now at an 11-year high. Housing Starts rose as well to 0.974 million units (annualized), which was up 4.3% from last month's upwardly revised 0.934 million. And Housing Permits jumped 14.4%, which points to another gain in housing starts again next month. Separately, it was also nice to hear U.S. Trade Representative Robert Lighthizer tell the House Ways and Means Committee yesterday that China has repeatedly reaffirmed their commitment to buy more U.S. goods and services. This echoes Mr. Lighthizer's comments from the week before when he said he felt "very good" about the progress being made by China in honoring the Phase 1 Trade Agreement. We'll get more economic reports today with Weekly Jobless Claims, the Philadelphia Fed Business Outlook Survey, and Leading Indicators. Once thing is clear, with all 50 states reopened in some shape or form, we're seeing huge pent-up demand being unleashed. That's why the recent economic reports have come in so much better than expected, and why stocks have been on the move. And with the expansion continuing, it looks like there's a lot more upside to go. So make sure you're taking full advantage of it. That means getting into the right stocks and staying out of the wrong ones. Even though we are in a confirmed bull market, not all stocks are created equal. There have been, and will continue to be, plenty of tried and true names leading this market. But there will also be plenty of new names that many people may not have even heard of before. Because the virus outbreak, and the upheavals it's brought about for businesses and consumers, will change large portions of our economy. And the companies that can adapt will thrive and become new market leaders, while those that can't will suffer. To learn how to determine which is which, be sure to read our latest commentary... [It's a Confirmed Bull Market, Which Stocks Will Lead the Way?]( Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Claim your Free Copy of Finding #1 Stocks]( Normally sold at $49.95, Finding #1 Stocks is packed with secrets to picking stocks from Zacks' EVP Kevin Matras. 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