Stocks Lower On Monday, Inflation And Employment Reports Due Later This Week

Plus 5 New Strong Buys for Today Stocks Lower On Monday, Inflation And Employment Reports Due Later This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Lower On Monday, Inflation And Employment Reports Due Later This Week [Stocks Lower On Monday, Inflation And Employment Reports Due Later This Week]Image: Bigstock Stocks closed lower yesterday to start the week. Reports of more Covid unrest in China, with lockdowns and protests, weighed on stocks in China. That spilled over to the U.S. markets yesterday. Brief hopes a couple of weeks ago that China would loosen Covid restrictions, and therefore see their economy strengthen because of it, were short lived. And now questions over China's growth outlook have resurfaced. The market is also watching the possibility of a rail strike here in the states. Of the 12 unions involved in negotiations, 8 have signed off on their packages, while 4 have not. They are still negotiating. And lawmakers are working to avoid a strike. The deadline for an agreement is December 9th. In other news, yesterday's Dallas Fed Manufacturing Survey improved from -19.4 to -14.4, and beating the consensus for -20.5. Today we'll get the Case-Shiller Home Price Index, the FHFA House Price Index, and Consumer Confidence. But the 2 main events this week will be Thursday's Personal Income and Outlays report, where we'll see what the PCE (Personal Consumption Expenditures) Index comes in at, which is an inflation gauge looked at by the Fed. We'll also get Friday's always important Employment Situation report. The Fed has been watching this closely as well. While the hot labor market shows the resiliency of the economy, it also shows that the economy (and possibly inflation), could remain elevated. The Fed meets again on December 13-14, and will make their decision on how high to hike rates. It's widely believed they will slow their pace down from 75 basis points (which is what they've hiked in each of their last 4 times out), to 50 basis points. The market is also hoping for language as to when they will finally stop and wait to see how their policy impacts inflation, the economy, and employment. The Fed wants to reduce inflation, but they also have a mandate for full employment. And they'd prefer to engineer a soft landing rather than a recession. Since rate policy is lagging (it takes a while to see its effects), there will need to come a time where they stop raising and just sit tight to see how their policy moves are working. While the FOMC Announcement is 3 weeks away, this week's reports could influence the Fed's decision. So all eyes will be on those reports later this week. In the meantime, stocks have been doing well over the last month and a half. Earnings season helped (stocks usually go up during earnings season). And Q4 is typically the best quarter for stocks. Moreover, the post-midterm effect on the market is positive as well (since 1950, stocks have always gone up in the year after midterms, with an average 12-month forward return of 18.6%). This bodes well for an end-of-year rally, and a strong start to 2023. But inflation, interest rates, and the pace of the economy remain key factors in the markets right now. And those will help shape what the market looks like going forward. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Louis Navellier: My Top 11 Stocks for 2023]( There's always a bull market somewhere and the billion-dollar money manager who picked the No. 1 stock in the S&P each year from 2012 to 2021, just released his 11 Top Stock recommendations for 2023. [Click here to download your free copy.]( Most Popular Articles from Zacks.com [5 Small Hidden Gems With Amazing Returns in a Capricious 2022]( Each of these Zacks Rank #1 (Strong Buy) stocks has positive growth potential for the rest of the year. [Read More »]( [3 Medical Instruments Stocks With Potential to Outperform]( These stocks are likely to outperform the industry going forward amid an improving world economy and easing macro headwinds. [Read More »]( [Natural Gas Spikes Above $7 After First Draw of the Season]( Due to the uncertainty associated with the outage at the nation's biggest LNG export plant, it would be wise to build a position in these quality names. [Read More »]( [4 Stocks to Buy as Black Friday Sales Hit Record High]( E-commerce has been playing an important role in driving overall retail sales, and the latest Black Friday sales are proof of that. [Read More »]( [A Macro Data-Focused Week: Global Week Ahead]( November U.S. nonfarm jobs data and Euro harmonized consumer price inflation data will focus the minds of most stock traders. [Read More »]( [Today, See Zacks' Top Stocks for Free]( Starting now, you can get instant access to the latest picks from our hottest market-beating strategies. In 2021 they gained +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Zacks will also give you a free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. [See This Stock Now >>]( [Bull of the Day: Fortinet (FTNT)]( Forget the slowdown, everyone still needs cybersecurity and this company is still posting good growth. [Read More »]( [New Zacks Strong Buys for November 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 September 12, 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