Stocks Down On Friday And For The Week, All Eyes On The Fed This Week

Plus 5 New Strong Buys for Today Stocks Down On Friday And For The Week, All Eyes On The Fed This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Down On Friday And For The Week, All Eyes On The Fed This Week [Stocks Down On Friday And For The Week, All Eyes On The Fed This Week]Image: Bigstock Stocks closed sharply lower on Friday and for the week. That makes it 5 weeks in a row for the Dow, and 4 weeks in a row for the S&P and the Nasdaq. The Nasdaq has gotten it the worst as it's down -23.2% (from their all-time high close to Friday's close), while the S&P and Dow are down -13.9% and -10.4% respectively. On Friday morning, the Personal Income and Outlays report showed the PCE Price Index (which stands for Personal Consumption Expenditures – and is the Fed's preferred inflation gauge), rose by 0.9% m/m (in line with expectations) and 6.6% y/y (just under the consensus for 6.8%). The Core PCE Index (which excludes food and energy) was up 0.3% m/m and 5.2% y/y. Even though those numbers were in line, or just under expectations, there was a hope that they would've fallen more than they did. Instead, they were essentially steady. And it was enough to spook already skittish investors out of the market ahead of Wednesday's FOMC Announcement, where the Fed is expected to raise rates by 50 basis points and begin unwinding their balance sheet. Quite frankly, I believe that is a bullish event, since that will help tamp down inflation, which is the biggest threat to the economy right now. But after Q1's negative GDP print of -1.4%, some people's uneasiness is growing. In other news, it was reported that the European Union is expected to approve a Russian oil ban this week. It's expected to be a phased in effort. There has been plenty of talk that this was coming. And the UK already announced their own plans to phase out their dependence on Russian energy by the end of the year. This could further disrupt the world energy market and exacerbate inflation. The market will be watching for the details of the EU plan and timeline. Earnings season is usually a bright spot. And it actually has been for many companies this earnings season. But some high profile misses, not the least of which was Amazon last week, which posted their first quarterly loss in 7 years and their slowest quarterly revenue growth in more than 20 years, sent shares down by -14% on Friday. Earnings season continues this week with another 1,807 companies set to report. And then another 1,499 next week. Stocks typically go up during earnings season. So far, that has not been the case for this one. But there's still several more weeks of earnings season left. We shall see. We have a full roster of economic reports out this week. But the main event will indeed be Wednesday's Fed announcement. Not just on their expected increase now, but any hint on what they are expected to do in June and July, since speculation has been swirling that they could go as high as 75 basis points at their next meeting (or meetings). In the meantime, traders will be watching to see if the market can regroup and put in a bottom. While there are definitely headwinds out there. There are also plenty of tailwinds. And it's hard to get too sour on the market, especially with one of the strongest labor markets on record, increased consumer demand, and increased business investment. Glad to put a lid on April. May is a brand new month. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Why Haven't You Looked at Zacks' Top Stocks?]( Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation. [See Stocks Free]( Most Popular Articles from Zacks.com [4 High Earnings Yield Picks to Spruce Up Your Portfolio]( Stocks with earnings yield have the potential to provide comparatively greater returns. [Read More »]( [3 Great Stocks to Buy in May and Hold During the Market Selloff]( These three stocks look to offer solid value, dividends, and are set to grow rather steadily in the coming years. [Read More »]( [Bet on 4 Prospective Shipping Stocks in a Promising Industry]( Investors interested in the Zacks Transportation --Shipping industry should consider adding these stocks for higher returns. [Read More »]( [Semiconductor Revenues to Hit Record High: 4 Stocks to Buy]( The semiconductor industry is only likely to benefit in the near term, given the surging demand and the ongoing supply shortage. [Read More »]( [Buy These 3 Growth Tech Stocks at Big Bargains?]( Long-term investors should start considering buying these tech stocks at bargain prices down the road. [Read More »]( [Start Every Day Ahead of Wall Street]( Before you make a trade, get today’s market news from Zacks’ latest Ahead of Wall Street article. With timely information from Zacks analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news »]( [Bull of the Day: GasLog Partners (GLOP)]( Over the last week alone, 2 analysts have increased their earnings estimates for the current year and next year. [Read More »]( [New Zacks Strong Buys for May 2nd]( 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