Plus 5 Just-Added Strong Buys Stocks Closed Lower On Friday, But Up For The Week
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks Closed Lower On Friday, But Up For The Week [Stocks Closed Lower On Friday, But Up For The Week]Image: Bigstock Stocks closed lower on Friday, but higher for the week. For the week, the Dow was up 0.38%, the S&P was up 1.65%, and the Nasdaq led the way with a 3.04% weekly gain. That makes it 4 up weeks in a row for the Nasdaq. Better than expected earnings from Deere & Company before the open on Friday helped lift stocks early. But it didn't last. Nonetheless, they posted a positive EPS surprise of 12.6%, and a positive sales surprise of 8.32%. They also raised their net income guidance for all of 2023 to $9.25B-$9.50B (midpoint of $9.38B), from their previous guidance of $8.75B-$9.25B (midpoint of $9.0B). Like the market, they opened higher but gave up their early gains by day's end. News that debt ceiling talks hit a snag helped turn stocks lower. But the selling was relatively minor. Who knows what shape the debt ceiling negotiations and deal ultimately looks like. There have been some interesting ones in the past. And they almost always seem to go to the last minute (or slightly beyond). But since 1960, there's been 78 times Congress has raised the debt ceiling â regardless of how ugly the talks got â and never defaulted. It's almost unimaginable to think Congress would default. It would be a catastrophic mistake that would severely raise the cost of servicing our debts in the future. There would be no political winners. That being said, the market seems to be acting like a deal will get done eventually. There's bound to be some volatility as the deadline gets closer. But with a 100% track record of raising the debt ceiling over the last 60 years, it's probably the right bet. In other news, Fed Chair, Jerome Powell said "our policy rate may not need to rise as much as it would have otherwise to achieve our goals" (of 2% inflation). This was said is response to the banking crisis that he said has tightened credit and could weigh on economic growth. And he acknowledged that the disruption the crisis has caused to the financial system could impact the Fed's decision. The comments were taken bullishly in that it's looking more likely that the Fed does indeed pause in June. Although, most have already been assuming they would, based on his previous comments. So I wouldn't characterize Friday's comments as new. And he still keeps his hedge in there when he says the path is undecided or that it's unknown. The shocker at this point would be if they raised in June. Gladly, all the talk seems to be heading in the pause direction for now. Stocks are doing well this year, although the performance has been a bit uneven. YTD the Dow is only up 0.84%, while the S&P is up 9.18%, and the Nasdaq is up 20.9%. But when you step back and look at them all from their bear market low close last year, they even out with the Dow up 16.4%, the S&P up 17.2%, and the Nasdaq up 23.9%. We still have to get thru the debt ceiling drama. And inflation is still too high. But inflation is declining. The Fed is likely on pause. Personal incomes are hovering near all-time highs. And the economy, while slowing, is resilient. And that suggests more upside to go. See you tomorrow, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research [Why Haven't You Looked at Zacks' Top Stocks?]( Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. [See Stocks Free »]( Most Popular Articles from Zacks.com [Berkshire Hathaway's Q1 Portfolio Moves: Is Boring Okay?]( Buffett unleashes his infamous patience to start 2023 as new portfolio additions are few. [Read More »]( [Buy These Standout Large-Cap Stocks for Long-Term Upside?]( Investors should feel comfortable buying these two stocks now at rather attractive levels to hold for the long haul. [Read More »]( [5 Soaps & Cleaning Materials Stocks to Gain in a Prospering Industry]( These industry players have been undertaking cost-curtailment actions to support margins, while coming up with the latest products and improved marketing efforts. [Read More »]( [Top Research Reports for NVIDIA, Cisco Systems & Philip Morris]( Director of Zacks Equity Research Sheraz Mian takes a closer look at new research reports on 16 major stocks, including NVIDIA Corporation, Cisco and Philip Morris. [Read More »]( [5 Restaurant Stocks to Buy Today]( The restaurant industry is the main driver of growth, with segment earnings expected to grow 36.1% in the first quarter. [Read More »]( [Your Exclusive Access to Today's Top ETFs]( 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 fundâs potential before you invest your money. [See Today's Top-Ranked ETFs »]( [Bull of the Day: Service Now (NOW)]( NOW has emerged as a highly compelling stock with robust growth, technological advancements, and strong fundamentals. [Read More »]( [New Zacks Strong Buys for May 22nd]( 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 moreâdaily 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 May 15, 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