Stocks Closed Higher Yesterday, On Pace To Close Higher For The Week

Plus 5 Just-Added Strong Buys Stocks Closed Higher Yesterday, On Pace To Close Higher For The Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher Yesterday, On Pace To Close Higher For The Week [Stocks Closed Higher Yesterday, On Pace To Close Higher For The Week]Image: Bigstock Stocks closed higher yesterday after a volatile session. But by the end of the day, the Dow, the S&P, and the Nasdaq were all higher. And the Nasdaq led the way with a gain of 1.01%. Wednesday's FOMC announcement and Mr. Powell's press conference had something in there for both bulls and bears. On Wednesday, the bears won out. Yesterday, it was the bulls. With one more day left in the week, the big 3 indexes are all higher for the week. And it won't take much to keep it that way. To recap Wednesday's Fed news, they raised rates by a quarter point, which puts the Fed Funds midpoint at 4.88% (range of 4.75%-5.00%). And they essentially hinted at one more 25 bps hike come their next meeting on May 2-3. They will also continue their efforts to reduce their balance sheet. Their holdings increased last week as they injected liquidity into the banking system. But they see that as a temporary measure, and will resume their passive reduction by letting their holdings expire without replacing them. And they appeared to back away from Mr. Powell's congressional testimony from earlier this month when he said the Fed might have to raise rates "higher than previously expected." Instead, he reiterated his expectation from December's FOMC meeting when he estimated rates would get as high as 5.1% by the end of 2023. And one more 25 bps hike would put the midpoint at roughly 5.1% (5.13% for a range of 5.00%-5.25%). While he estimated the Fed Funds rate to drop to 4.1% by the end of 2024, and 3.1% by the end of 2025 (which means rate cuts beginning in 2024), he effectively said there would be no rate cuts this year. In fact, the exact quote was, "rate cuts this year are not our baseline expectation." (He's been pretty clear on that for a while now. But some still think they will cut sooner rather than later.) In other news, yesterday's Weekly Jobless Claims came in better than expected, falling by -1,000 to 191K. New Home Sales rose to 640,000 units (annualized) vs. last month’s 633K, but missed the consensus for 645K. And the Chicago Fed National Activity Index slipped to -0.19 vs. last month's 0.23 and views for 0.18. Today we'll get the Durable Goods Orders report, and the PMI Composite Flash report. We'll also hear from James Bullard, President of the Federal Reserve Bank of St. Louis this morning, as he speaks, and participates in a discussion, on the U.S. economy and monetary policy, before Greater St. Louis, Inc. The market is still trying to make heads or tails of Wednesday's rate hike, and suggestion of another one after that. But if inflation continues to decline, and the economy remains resilient (strong jobs, strong retail sales, and a strong GDP -- Q1 is forecast at 3.2%), that all sounds bullish to me given the Fed’s anticipated rate pause after their May 3 meeting. Let's get thru the week first. But so far, it's looking good. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [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 +24.5% 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. This special opportunity ends at midnight Sunday, March 26. [See Stocks Now »]( Most Popular Articles from Zacks.com [2 Semiconductor Stocks to Buy with Reasonable Valuations]( Fortunately, there are still some chip stocks that are trading at reasonable valuations. [Read More »]( [What's Going On With Block Shares?]( We take a closer look at why Block (SQ) shares are making headlines for all the wrong reasons. [Read More »]( [Restaurants Set to Sail Through 2023]( Restaurants look like a good place to preserve capital in the current environment. [Read More »]( [5 Popular Retail Stocks for Buy and Hold Investors]( Retail stocks have come down off their 2021 highs. Are there any retail deals for long-term value investors? [Read More »]( [Is it Time for Growth ETFs as Fed Softens Hawkish Tone?]( Cues of cooling Fed rate hike momentum should bode well for growth investing. [Read More »]( [Your Exclusive Access to Today's Top ETF]( 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: Meta Platforms, Inc. (META)]( Meta has rocketed over 100% since early November as it commits to cutting costs. [Read More »]( [New Zacks Strong Buys for March 24th]( 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 6, 2023. 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