Stocks Closed Modestly Lower After Big Gains Last Week

Plus 5 New Strong Buys for Today Stocks Closed Modestly Lower After Big Gains Last Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Modestly Lower After Big Gains Last Week [Stocks Closed Modestly Lower After Big Gains Last Week]Image: Bigstock Stocks closed modestly lower yesterday, but comes on the heels of posting their best week since November 2020. The markets actually started the day higher. Then they chopped around for a bit, before turning lower after comments by Fed Chair, Jerome Powell, that the Fed is prepared to raise rates by 50 basis points rather than 25 basis points, if need be. He said, "If we conclude that it is appropriate to move more aggressively by raising the federal-funds rate by more than one-quarter point at a meeting or meetings, we will do so." He also said, "And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well." Given the fevered speculation that the Fed was contemplating raising rates by a half-point at the last meeting, made his 50 basis point comment yesterday not much of a surprise. But his follow up comment regarding tightening beyond common measures, and possibly taking a more restrictive stance was somewhat new. Nevertheless, traders cheered the Fed's recent quarter point move. And since they said they expected rates to get to 1.9% by the end of the year (with only 6 more FOMC meetings to go), many had already figured that a half-point move would have to be coming at some point this year. And the greater concern right now is less about rates and more about runaway inflation. So for now, the aggressive stance should be welcomed news, as long as they stay within their stated parameters of 1.9% this year. We'll get another look at the economy today with the Redbook retail sales report, and the Richmond Fed Manufacturing Index. And, of course, everyone will be watching the war on Ukraine. In the meantime, the economy continues to improve. Corporate earnings are being revised higher, while multiples are going lower. That's bullish for the economy and the market. Those things have been largely ignored with the war on Ukraine. But eventually, the positive news that's being overlooked right now, will eventually break through. And that suggests there's a lot more upside to go. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Today, See Zacks' Top Stocks for Free]( Starting now, you can get instant access to the latest picks from our hottest market-beating strategies. In 2021 they gained +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Zacks will also give you a free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. 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