Stocks Up After Reversing Early Losses

Plus 5 New Strong Buys for Today Stocks Up After Reversing Early Losses [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Up After Reversing Early Losses [Stocks Up After Reversing Early Losses]Image: Bigstock Stocks finished up yesterday, after erasing intraday losses in the latter half of the session. Traders are still digesting the latest FOMC minutes which showed the Fed leaning towards a 50 basis point rate hike at their next meeting on May 3-4. They are also likely to begin reducing their record high $9 trillion balance sheet. Stocks sold off on the news on Wednesday. But the market appeared to have a change of thinking on Thursday as stocks staged an impressive rally after Wednesday's follow thru selling dried up. A positive reaction to the Fed news is the logical one since the biggest threat to the economy right now is inflation. And taking measures to mitigate that threat doesn't make the economy more vulnerable. On the contrary, it makes it more attractive. The economy, for all of the headwinds it's facing, is strong. That's why Fed Chair Jerome Powell thinks the economy is more than strong enough to merely withstand tighter monetary policy, but instead, thinks it will "flourish in the face of less accommodative monetary policy." And the sooner we can tamp down inflation, the better. In other news, Weekly Jobless Claims came in better than expected, falling -5,000 to 166K vs. the consensus for 202K. Today we'll get Wholesale Inventories, and the Baker Hughes Rig Count Report. At the moment, stocks are down for the week and on the verge of ending the 3-week winning streak for the S&P and Nasdaq. (The Dow's winning streak was cut short last week at 2 weeks.) But all of the indices are just one good day away from finishing the week in the green. We shall see. Regardless, we've seen a sharp rally over the last several weeks that lifted stocks well off their correction lows. And YTD, the Dow is only down -4.83%, the S&P by -5.58%, and the Nasdaq by -11.2%. The market's resilience is on full display. And with a little more progress chipping away at the current issues, namely inflation, stocks look poised to soar. So don't let this pullback pass you buy, because it looks like there's a lot more upside to go. And that could come a lot sooner than you think. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Alert: Buy These Ultimate Four Stocks Now]( There's still time to get in early. These aren't just 4 promising stocks. 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