Stocks Soar On Earnings And Fed Announcement

Plus 5 New Strong Buys for Today Stocks Soar On Earnings And Fed Announcement [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Soar On Earnings And Fed Announcement [Stocks Soar On Earnings And Fed Announcement]Image: Bigstock Stocks soared yesterday with the Dow up 1.37%, the S&P up 2.62%, and the Nasdaq up a whopping 4.06%. The markets were already trading higher in front of the FOMC Announcement on rates. Tuesday's after-the-bell earnings by Microsoft, Google, and Intel (amongst others) lifted stocks early yesterday. Even though Microsoft, for example, missed on both the top and bottom lines (although revenue was up 12% vs. last year), positive guidance turned sellers into buyers. Then came the Fed. They announced another 75 basis point rate hike. But stopped short of saying what they expected to do at their next meeting in September. While they hinted at getting the Fed Funds rate to between 3-3.5% (it's at a mid-point of 2.38% now), they said they will judge the economy at each meeting and make their decision at that time. They acknowledged that inflation remains too high, that spending and production have slowed, but that aggregate demand remains strong. When asked about a recession, Mr. Powell said he didn't believe we were in one by saying "there are too many areas of the economy that are performing too well." And that the "very strong labor market" is not consistent with recession. Of course, we'll find out this morning whether we're technically in a recession or not when Q2 GDP comes out. Estimates range from being down -1.2% to being up 0.5%. Either way, recession or not (what's in a name?), growth has slowed (which is actually good for tackling inflation). The question now is, what will growth be like in Q3 and the rest of the year? The Fed is still expecting positive growth for the full-year. And if so, the worst-case scenario that tanked stocks in the first half of the year, looks to be overdone. And that's why stocks are rallying. Since the June lows, the Dow is up 7.59%, the S&P is up 9.73%, and the Nasdaq is up 13.0%. The markets are still down double-digits. But are well off their worst levels. And that has many wondering if stocks have already hit bottom. To read more about whether we have or haven't, and what to do about it, be sure to read our latest commentary... [Have Stocks Bottomed?]( Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [5 Top-Rated Stocks for July - Just Released]( MarketBeat's analysts have just released their top five highest-rated stocks for July, 2022. None of the usual suspects, including Apple and Tesla, made the cut. Click the link below to see which stocks made the cut. [View MarketBeat's Top 5 Stocks for July]( Most Popular Articles from Zacks.com [3 Highly-Ranked Stocks With Stellar Projected Growth]( Top and bottom-line growth is the name of the game for these three companies. [Read More »]( [A Stable Earnings Picture Despite Many Headwinds]( Although a slowdown has gotten underway, there is nothing in the earnings data, management commentary or guidance that would suggest the U.S. economy is heading into a major economic downturn. [Read More »]( [4 Semiconductor Stocks to Watch on Growth Prospects]( Semiconductor sales have increased by more than 20% month over month, for the 14th straight month. [Read More »]( [3 Construction Stocks Set to Carve a Beat This Earnings Season]( These stocks look to beat analyst Q2 expectations on the back of higher residential, non-residential and infrastructural demand amid rising costs. [Read More »]( [5 Stocks With Recent Price Strength to Gain From July Rally]( Each of these stocks has a Zacks Rank #1 (Strong Buy) and has recently seen a bull run. [Read More »]( [Notification of Release: 5 Stocks Set to Double]( Five Zacks' experts have each revealed their single favorite stock with the best chance to gain +100% and more in the months ahead. Previous editions of this Special Report have racked up gains of +143.0%, +175.9%, +498.3%, and even +673.0%. Today, you are invited to download the just-released report that names new stocks and spotlights why their gain potential is so exceptional. [See Stocks Now »]( [Bull of the Day: W.R. Berkley Corporation (WRB)]( This large-cap insurer topped quarterly estimates on July 21 and has climbed to new highs in 2022. [Read More »]( [New Zacks Strong Buys for July 28th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. 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