Stocks Closed Mostly Higher On Tech-Led Rally

Plus 5 Just-Added Strong Buys Stocks Closed Mostly Higher On Tech-Led Rally [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Mostly Higher On Tech-Led Rally [Stocks Closed Mostly Higher On Tech-Led Rally]Image: Bigstock Stocks closed mostly higher yesterday with the Nasdaq up 1.71% and the S&P up 0.88%. Nvidia (and other tech firms keyed into the generative AI space), led the gainers. But the biggest winner was Nvidia as they soared by more than 24% yesterday, after posting both top and bottom line surprises, and sharp upward revenue guidance, on Wednesday afternoon. After the close yesterday we heard from tech firm Marvell Technology, and they posted a 6.90% positive EPS surprise, and a 1.59% positive sales surprise. They also upped current quarter guidance to 27-37 cents (midpoint of 32) vs. the consensus for 31 cents. They were up 7.59% before earnings. They added another 14.6% in after-hours trade. Debt ceiling worries persist, although they appeared to take a backset to yesterday's tech-led rally. Some are still holding out hope for a deal this week. We shall see. But the brinkmanship from both sides so far has led Fitch Ratings to put the U.S. AAA rating on negative watch. Whether that helps serve as a wake-up call for what's to come if D.C. fails to reach a deal soon, who knows. Let's hope it does. In other news, the second estimate for Q1 GDP came in at 1.3%, up from the first estimate of 1.1%. We'll get the third and final estimate for Q1 next month. But investors have already set their sights on Q2. And according to the Federal Reserve Bank of Atlanta's GDP Now forecast, they are estimating Q2 at 2.9%. Weekly Jobless Claims rose 4,000 to 229K. (But that increase in new claims was only up from the steep downward revision to last week's original 242K to 225K.) The Chicago Fed National Activity Index rose to 0.07 from last week's downwardly revised -0.37. The Kansas City Fed Manufacturing Index improved to -1 from last month's -10. The Pending Home Sales Index was flat (0.0%) m/m vs. the consensus for 1.1%. The index itself is at 78.9, the same as last month. Today we'll get the Durable Goods Orders report, the International Trade in Goods and Services report, Retail and Wholesale Inventories, and Consumer Sentiment. We'll also get the Income and Outlays report which features the Personal Consumption Expenditures (PCE) index. Since this is the Fed's preferred inflation gauge, all eyes will be on that in the morning. The consensus is calling for a modest increase m/m, with a slight uptick in y/y headline inflation (4.3% vs. last month's 4.2%), and no change in core inflation at 4.6%, the same as last month. It comes out at 8:30 AM ET. Given the uncertainty surrounding the debt ceiling, we could see some added volatility today going into the 3-day Memorial Day weekend. (Markets are closed on Monday.) At the moment, the Dow and the S&P are in the red for the week, but the tech-heavy Nasdaq is currently in the green for the week. The Nasdaq notched its fourth up week in a row last week. If they can do it again this week, that will make it number 5. Could be a busy day today. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Missed the NVIDIA Jump?]( Since NVIDIA skyrocketed more than +24% yesterday, does it herald a monster tech rally in general – and among semiconductor stocks in particular? In our view, "Absolutely yes." Given the guidance on NVDA ($11B in revenue for next quarter when $7B was expected), the whole category should see a big boost over the next 3 to 6 months. That's why we just added a special company to our Home Run Investor portfolio. It's a Zacks Rank #1 Strong Buy – a small-cap that fills a big need for chipmakers. And, like our other home run stocks, it's primed to start fast and "swing for the fences." If you move quickly, you can be among the early birds who catch this newly added company near the peak of its profit potential. In fact, you can see all our Home Run Investor recommendations and follow the real-time buys and sells for 30 days. Your total cost? Only $1, and there's not a cent of further obligation. [See Home Run Stocks Now »]( Most Popular Articles from Zacks.com [AI Revolution: 1999 Deja Vu?]( With the recent explosion in the prices of AI stocks, expanding P/E ratios, and an influx of hype and short-term euphoria, are we heading for a repeat of the late ‘90s internet bubble? [Read More »]( [ETFs to Buy on Nvidia's Blowout Q1 Earnings]( Investors could tap NVDA's recent strength with the help of the ETFs that have the largest allocation to NVIDIA in focus. [Read More »]( [4 Accident & Health Insurers to Watch as Exposure Increases]( We have highlighted stocks that look to continue benefiting from prudent underwriting standards. 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