Stocks End Lower, Poised For Another Down Week

Plus 5 New Strong Buys for Today Stocks End Lower, Poised For Another Down Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, Poised For Another Down Week [Stocks End Lower, Poised For Another Down Week]Image: Bigstock Stocks ended lower again yesterday, and are on pace for another down week. Wednesday's 75 basis point rate hike, coupled with a higher expected terminal rate (4.6% by early next year vs. 4.0%), and an accelerated timeline to get there, weighed on stocks for the second day. By year's end, the Fed expects to be at 4.4%. In order to reach that level in the next 3 months, it will require another 1.25% between the next two Fed meetings in November and December. Absent an intra-meeting rate hike, that would mean another 75 bps at one of the meetings, and 50 bps at the other. The next meeting on November 1-2 is 5 weeks away. But we will get another look at inflation with the CPI and PPI reports before then. While the Fed did say they will continue to look at the data, and take each meeting as it comes, they seemed resolute in their short-term hiking plans. And unless inflation suddenly plummets to 2% next month (don't bet on it), it's hard to imagine any scenario that would slow the Fed down at this stage. Presently, the midpoint for the Fed Funds rate is 3.13%. So there's still a long way to go to get to 4.4% and 4.6%. In other news, yesterday's Weekly Jobless Claims rose less than expected with 5,000 new claims at 213K vs. the consensus for 220K. And the Leading Indicators report slipped -0.3% m/m vs. views for 0.0% and last month's dip of -0.5%. Today we'll get the PMI Composite Flash report. And we'll hear from Fed Chair, Jerome Powell, as he will provide the opening remarks at the 'Fed Listens' event, which will cover the topic 'Transitioning to the Post-Pandemic Economy.' We'll also hear from Fed Vice Chair, Lael Brainard, and Fed Board Governor, Michelle Bowman, as they will be moderating this afternoon's event. While no new news regarding the recent interest rate hike is expected to be made at the event, there's still likely to be a keen interest in what these members have to say, not to mention the various businesses, organizations, and nonprofits who will be participating in the event. And most everybody is curious what these leaders have to say regarding the post-pandemic economy. It will be nice to put an end to this week. While it's pretty certain the markets will finish down for the week, let's see if they're able to muster a little green for the day. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Get Private Picks from Zacks' Long-Term Portfolios]( Through good markets and bad, one unique stock-picking method has more than doubled the market’s average gain with an incredible +24.6% per year. To help you take advantage of rare opportunities in today’s market, we’re opening the vault to reveal all our long-term recommendations. You’ll see stocks priced under $10… income investments… hidden value stocks and more. All for just $1. Special opportunity ends at midnight Sunday, September 25. [See Stocks Now »]( Most Popular Articles from Zacks.com [3 Under-the-Radar Stocks to Buy Now Near Highs to Fight Inflation]( Each of these Zacks Ranked stocks has climbed to new highs recently during the market downturn. [Read More »]( [What's in Store for Banks as Fed Signals More Rate Hikes, Slowdown?]( As the economy slows down and demand for loans gradually wanes, bank earnings are likely to be adversely impacted to some extent. [Read More »]( [ETFs That Won After Fed Rate Hike]( We have selected three ETFS that have continued to gain despite market volatility. [Read More »]( [5 Dividend-Paying Stocks to Watch in the Semiconductor Space]( Investors should consider these high-quality dividend-paying tech stocks to fetch handsome returns. [Read More »]( [Minimum Volatility & Value ETFs for Turbulent Markets]( Director of ETF Research Neena Mishra speaks with Lukas Smart, Head of U.S. iShares Factor Strategies at BlackRock, about factor ETFs. [Read More »]( [Increase Investment Returns with Free Zacks’ Portfolio Tracker]( Catch breaking news on your stocks and funds at a glance, including timely recommendation changes … Zacks Ranks … Industry Ranks … earnings announcements … earnings estimate revisions … and more. And now you can screen for new stocks to improve portfolio performance. [Click for Free Tracker & Screener »]( [Bull of the Day: Huron (HURN)]( Huron shares have surged in 2022 even as the market tumbles and its consulting industry is poised to remain resilient during an economic downturn. [Read More »]( [New Zacks Strong Buys for September 23rd]( 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 August 1, 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