Stocks Down Modestly, 2 Days To Go Before The Fed's Announcement On Rates

Plus 5 Just-Added Strong Buys Stocks Down Modestly, 2 Days To Go Before The Fed's Announcement On Rates [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Down Modestly, 2 Days To Go Before The Fed's Announcement On Rates [Stocks Down Modestly, 2 Days To Go Before The Fed's Announcement On Rates]Image: Bigstock Stocks closed marginally lower yesterday ahead of Wednesday afternoon's FOMC announcement. Earnings season continues. Not a lot of excitement yesterday. At least not like last week. But that should change with plenty of marquee names on the docket this week including Advanced Micro Devices today, Qualcomm tomorrow, Apple on Thursday, and Berkshire Hathaway on Friday. But the report everyone has been waiting for is the FOMC announcement on rates on Wednesday afternoon. After last Friday's PCE index, which showed core inflation coming down yet again (4.6% y/y vs. last month's 4.7%, and last year's high of 5.3%), not to mention last month's CPI and PPI reports which also showed inflation on the decline with core CPI at 5.5% vs. last year's peak of 6.5%, and core PPI at 3.4% vs. last year's peak of 8.2%, the expectation is for the Fed to raise rates one more time by 25 basis points, and then call it quits. That will put the terminal rate at the 5.1% level that they have been forecasting. In other news, yesterday's PMI Manufacturing Index came in at 50.2 for April, just under the consensus for 50.4, but just above March. The ISM Manufacturing Index came in at 47.1 for April, beating the consensus for 46.8, and March's 46.3. And Construction Spending was up 0.3% m/m vs. last month's pace of -0.3%, and views for 0.1%. On a y/y basis, construction spending is up 3.8%. Today we'll get Factory Orders, and the Job Openings and Labor Turnover Survey report (of JOLTS for short). I should also mention yesterday's purchase of First Republic Bank by JPMorgan Chase. JPM, at the request of the FDIC, paid $10.6 billion for most of FRC's assets. JPM's CEO, Jamie Dimon, remarked after the deal that "this part of the crisis is over." And that the purchase has helped stabilize the banking system. That being the case, investors will turn their focus back to earnings, and of course, the Fed's next move on rates, and if Wednesday's expected 25 bps move is finally the last one. If so, that could very well be the beginning of the next leg up in the market. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Breakthrough! How One Company Turned an Industry Bottleneck Into Massive Profit Potential]( [image]( New groundbreaking tower technology solves solar's #1 drawback. These unique vertical structures not only take up to 90% less land space, but also generate extra electric power. [Read The Full Report Here]( Most Popular Articles from Zacks.com [Nvidia, the Market Leader, is Breaking Out on Volume]( NVDA has all the characteristics of a leading stock, including a unique product offering, liquidity, fundamentals, and the price and volume strength to go with it. [Read More »]( [3 Consumer Staples Stocks Investors Shouldn't Ignore]( These three top-ranked low-beta stocks have all provided solid gains over the last three months. [Read More »]( [4 Renewable Energy Stocks Set to Beat Q1 Earnings Estimates]( Renewable energy stocks' first-quarter results are expected to reflect solid installation activities as well as an increase in product shipments. [Read More »]( [5 Excellent Stocks to Ride on Relative Price Strength]( Price strength is essential to measure the performance of a stock relative to its industry or peers, or an appropriate benchmark. [Read More »]( [Is This the 'Terminal' Fed Rate Hike? Global Week Ahead]( The Fed is expected to deliver another 25-basis point interest rate increase Wednesday and signal a pause in its most aggressive rate-hiking cycle since the 1980s. [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: General Motors (GM)]( Now is an opportunistic time to buy GM stock with its attractive expansion in the EV market and the company offering good value to investors. [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 April 3, 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