Stocks Down On Friday And For The Week

Plus 5 New Strong Buys for Today Stocks Down On Friday And For The Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Down On Friday And For The Week [Stocks Down On Friday And For The Week]Image: Bigstock Stocks closed sharply lower on Friday and lower for the week. That now makes it 4 weeks in a row for the Dow, and 3 weeks in a row for both the S&P and Nasdaq. Inflation, of course, and the war on Ukraine continue to weigh. But on Friday, people couldn't stop talking about the possibility that the Fed could raise rates by as much as 75 basis points in June or July. I'm not hearing that for the May 3-4 meeting, as 50 basis points seems to be what the Fed is telegraphing. But with Fed Fund futures traders at the CME giving it a 94% chance that 75 basis points will happen in June (that's up from a 28% chance just a week ago), you never know what might happen in May. And the Fed has been talking about front-loading their hiking pace. No doubt because they realize they waited too long, and with inflation so high, they are anxious to try and make up for lost time and knock it down sooner rather than later. Plus, we're essentially only a quarter point off zero right now, which is entirely too low for where inflation is at the moment. But what I think many are getting wrong is the impact on the economy. People sold off stocks on Friday as if the faster pace was somehow bad for the economy. On the contrary. The doing-nothing-on-rates was bad for the economy. And the hiking-too-little was bad for the economy. Because inflation keeps going up. The bolder moves are not bad for the economy. It's actually good for the economy. Because the sooner inflation is under control, the sooner we can usher in sustainable growth without having to worry about when inflation will ruin it. Friday's sell-off, to me, seemed overdone. And if Friday wasn't the end of the bottoming formation, we have got to be getting close to it. So as tough as it was to see the market go down on Friday -- the lower prices and lower valuations, coupled with a historically tight labor market and strong economy, is creating a spectacular buying opportunity. Because it looks like there's a lot more upside to go for both the economy and the market. But we're going to have to see stronger action from the Fed. And some indication that inflation is plateauing, if not starting to go down. (BTW, it should be noted that some believe March's inflation numbers may prove to be the high water mark for inflation. We shall see.) In the meantime, stocks continue to trade above their correction lows, in spite of Friday's decline. We've got 7½ more trading days before the Fed makes their next move on rates. So there is bound to be more volatility until then. (And probably after too.) But the market should cheer an aggressive Fed at this stage. And that's why I'm looking forward to May 4th (when the Fed makes their announcement), with enthusiasm, and not dread like so many others. Until then, earnings season kicks into gear this week with 1,019 companies on deck to report. And then another 1,822 next week. So there will be plenty to keep the market busy until the next Fed meeting. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Louis Navellier Details The Big Day Coming for Cash Holders]( The explosive rise of tech stocks we saw last year was just the beginning... "The Earnings Whisperer" Louis Navellier released a video detailing several key steps he believes every American should be taking right now. 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