Plus 5 New Strong Buys for Today Stocks Up For Second Day After Impressive Turnaround
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks Up For Second Day After Impressive Turnaround [Stocks Up For Second Day After Impressive Turnaround]Image: Bigstock Stocks closed solidly higher yesterday after an impressive turnaround. After sinking in the morning, with the S&P down as much as -1.2%, they quickly began their comeback. And by day's end, they were up 0.41%, closing just a couple of points off of their highs of the day. Optimism that a debt ceiling solution will be reached before the October 18th deadline (and maybe much sooner) was a positive for the market. While nobody was really expecting this to go unresolved and risk a default, one never knows. And getting this buttoned up will be one less thing to worry about. But it's not done until it's done. So we shall see. But the positive development was welcomed. Stocks also cheered yesterday's ADP Employment Report which came in better than expected at 568,000 new private payroll jobs for September vs. the consensus for 428,000. This helped energize the market ahead of Friday's Bureau of Labor Statistics Employment Situation Report. After last month's miss, but the prior month's positive surprise, there's a degree of angst over Friday's report, given the persistent labor shortages. We had been hearing reports that hiring has picked up, especially after the extended unemployment benefits came to an end in the first week of September. That seemed to be confirmed with yesterday's better than expected ADP report. Friday's employment report is expected to show 475,000 new jobs last month (445K for the private sector and 30,000 for the public), while the unemployment rate is expected to have ticked down from 5.2% to 5.1%. In the meantime, we've still got more reports on deck for today, including Weekly Jobless Claims, the Challenger Job-Cut Report, the EIA Natural Gas Report, and the Consumer Credit report. After testing the lower bounds of the recent pullback for the last 5 days and seeing it hold, it looks like stocks could be headed back up. We'll need more good news to see this build. That could come today with a debt ceiling deal. Or tomorrow with a solid jobs report. Or next week when Q3 earnings takes center stage. There's a whole host of potential good things that could send stocks soaring. Let's also not forget that full-year GDP growth is still expected to come in at the fastest pace in 37 years. And the robust growth forecast looks set to continue for '22 and '23. And that means it looks like there's a lot more upside to go for the market. It's also great to see that daily Covid cases and deaths are going down. That will further bolster the economic recovery. For those looking for some new picks to get into after the recent pullback, consider taking another look at some of the 'Covid stocks.' While they have fallen from their peaks, many should continue outperforming in the future due to their sound fundamentals. And there are three areas in particular to focus on. To read all about it, be sure to check out our latest commentary... [Time to Buy Back into the COVID Stocks]( Best, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research Sponsor [5 Top-Rated Stocks for August- Just Released]( MarketBeat's analysts have just released their top five highest-rated stocks for August, 2021. None of the usual suspects, including Apple and Tesla, made the cut. Sign-up for MarketBeat's free ratings newsletter using the link below to see which companies made the list. [Click here to see the list now.]( Most Popular Articles from Zacks.com [Read this article]( Image: Bigstock [September's Services PMI Confirms U.S. Recovery: 5 Top Picks]( Service-oriented industries are flying high buoyed by the great reopening of the U.S. economy. [Read More »]( [Read this article]( Image: Bigstock [4 Cosmetics Stocks Looking Good on Favorable Demand Trends]( Companies are seeing higher demand for skin care and personal care products as consumers incline toward self-care. [Read More »]( [Read this article]( Image: Bigstock [Q3 Earnings Season Gets Underway]( Estimates for 2021 Q3, whose early reports have started coming out, have not moved up as much as had been the case in the comparable periods in the last few quarters. [Read More »]( [Read this article]( Image: Bigstock [Can Crude Oil Touch the $100 Golden Mark? 3 Stocks to Gain]( With no visible reason for demand growth to slow down, some analysts expect oil prices to inch toward the $100 per barrel mark. [Read More »]( [Read this article]( Image: Bigstock [5 Best ETFs & Stocks of the Top Performing Energy Sector]( These ETFs are excellent choices to play the trend in the near term. [Read More »]( Sponsor [Is the Market Rigged?]( How often have you owned a stock that gets pummeled with no logical explanation? This is often caused by computer-driven High-Frequency Traders (HFT). They fire off massive amounts of short trades to drive stock prices down, then profit from the rebound. Their gains come at the expense of human investors. The good news is that Zacks has mounted a Counterstrike to catch the best of these âmanipulated price dropsâ as they rebound. For example, we recently closed gains of +40.2%, +49.1%, +62.0%, and even one for +252.0% in less than a month. Access to these trades must be limited. It closes to new investors Sunday, October 10. [See Counterstrike Stocks Now »]( [Read this article]( Image: Bigstock [Bull of the Day: TJX Companies (TJX)]( A new wave of consumers is being ushered into this flourishing economy with a penchant for value and convenience: TJX's new omnichannel platform equips the company with both. [Read More »]( [Read this article]( [New Zacks Strong Buys for October 7th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( 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](
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