Stocks Up Sharply, Markets Turn Higher For The Week

Plus 5 New Strong Buys for Today Stocks Up Sharply, Markets Turn Higher For The Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Up Sharply, Markets Turn Higher For The Week [Stocks Up Sharply, Markets Turn Higher For The Week]Image: Bigstock Stocks soared yesterday with all of the major indexes closing sharply higher. The Nasdaq led the way with a gain of 3.06%. The Dow, S&P, and Nasdaq are now up for the week with one more trading day to go. Facebook's gain of more than 17% yesterday, after posting a positive EPS surprise and gain in user growth the day before, helped set the tone for the market. After the close yesterday, Amazon and Apple reported earnings. Apple posted a 6.29% positive EPS surprise, and a 3.53% positive sales surprise. Revenue was up 8.59% y/y. Amazon, on the other hand, posted a loss on earnings (in part to their Rivian investment which lost -$7.6 billion), and a narrow miss on sales. For perspective, revenue was up 7% y/y. But analysts were quick to note they saw a 44% revenue increase last year at this time, and that this was the slowest growth rate in over 20 years. Apple was down by roughly -3% in after-hours trade, while AMZN was down more than -12%. Q1 GDP came out before the open yesterday and posted a surprise decline of -1.4% vs. the consensus for a gain of 1.1%. But stocks rallied anyway. For one, stocks were so oversold, you saw lots of aggressive bargain hunting at these lower levels lift stocks higher. Two, GDP wasn't that bad when you look past the headline number. Consumer spending was up 2.7% q/q, which was a faster growth rate than the previous quarter's 2.5%. Business investment was up 9.2%, with equipment leading the way with a 15.3% gain. Residential investment was up 2.1%. And final sales to private domestic purchasers were up 3.7% vs. last quarter's 2.6%. It was lower government spending, lower exports, and lower inventories that weighed on the numbers. Traders who dug into the details of the report saw that the economy is actually pretty healthy. Hence the rally. Adding to the rally was a better than expected Weekly Jobless Claims report which showed -5,000 fewer claims at 180K vs. the consensus for 181K. Today we'll get Personal Income and Outlays, the Employment Cost Index, the Chicago PMI, and Consumer Sentiment. And, of course, more earnings. It won't take much to keep all of the major indexes in the green for the week. But if the market can build on yesterday's rally, that should invite even more buying. And put the market in a stronger position ahead of next week's Fed meeting (May 4th), where they are expected to raise rates by 50 basis points to tamp down inflation. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [5 Stocks Set to Double: Sunday Deadline]( There's still time to get in on our just-released 5 Stocks Set to Double Special Report. Each pick is the single favorite of a Zacks expert with the best chance to gain +100% and more in the months ahead: Stock #1: A Top Dog with Consistent Growth Stock #2: Technology that Could Drive the Next Decade’s Innovation Stock #3: Recovery is in Full Swing Stock #4: A Small Player Says "No Thanks" to a Monopolist Stock #5: A Current Market Leader Set to Release Blockbuster Lineup Previous editions have racked up gains of +143.0%, +175.9%, +498.3%, and even +673%. Deadline to download the new report is midnight Sunday, May 1. [See Stocks Now »]( Most Popular Articles from Zacks.com [Durable Goods Orders Rise in March: 4 Solid Stocks to Buy]( People have cut down on spending on goods owing to rising costs, but that has not impacted the manufacturing sector as demand for durable goods is on the rise. [Read More »]( [4 Top Air Conditioner & Heating Stocks to Buy in a Prospering Industry]( A major boost in residential and non-residential markets should continue to drive the industry. [Read More »]( [5 Must-Buy Stocks Ahead of Earnings Results Next Week]( Each of these stocks carries a Zacks Rank #1 (Strong Buy) and has a positive Earnings ESP. [Read More »]( [5 Buy-Ranked Stocks That Beat Estimates This Week]( We focus on buy-ranked stocks that have a Value Score of A or B. [Read More »]( [A Guide to the 10 Most-Popular Dividend ETFs]( Dividend-focused products offer safety through payouts and stability in the form of mature companies that are less volatile amid large swings in stock prices. [Read More »]( [Your Exclusive Access to Today's Top ETFs]( Use Zacks ETF Rank to help you select the very best ETFs for your portfolio. This quantitative ratings system takes into account asset class forecasts as well as several ETF-specific factors. All to give you a comprehensive account of a fund’s potential before you invest your money. [See Today's Top-Ranked ETFs »]( [Bull of the Day: Manitowoc (MTW)]( Orders for heavy cranes are booming as construction looks strong despite rising costs for materials, labor, and capital. [Read More »]( [New Zacks Strong Buys for April 29th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App 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]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through February 28, 2022. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606