Plus 5 Just-Added Strong Buys Stocks Closed Mixed, But Small-Caps And Mid-Caps Soared Once Again
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks Closed Mixed, But Small-Caps And Mid-Caps Soared Once Again [Stocks Closed Mixed, But Small-Caps And Mid-Caps Soared Once Again]Image: Bigstock Stocks closed mixed yesterday with the S&P and Nasdaq both in the red. But like the day before, the small-cap Russell 2000, and the mid-cap S&P 400 both closed sharply higher with gains of 1.78% and 1.50% respectively. Additionally, while the market-weighted S&P 500 was down -0.38% yesterday, the equal-weighted S&P 500 ETF was up 0.74%. The market-weighted index has been powered by the top 10 largest names, resulting in a double-digit gain, while the equal-weighted index was actually lower for the year until just recently. This showed the narrowness of the rally. But seeing the small-caps, mid-caps, and other large-caps getting in on the action shows the breadth of the rally widening. And thatâs a positive development. The OECD (Organization for Economic Cooperation and Development), released a report yesterday projecting global growth of 'just' 2.7% this year. They noted it was the lowest growth rate since 2008. But they also commented that the global economy is showing signs of improvement. And indeed it is. The OECD report comes on the heels of Tuesday's report by the World Bank talking about slower growth as well. But they actually raised their global growth rate from January's 1.7% estimate to 2.1% now. Yes, it's slower than last year. But it's still solid growth. I know some are trying to put a negative spin on those reports. But it's hard to get dour on a 2.1% or 2.7% growth rate as those both show pretty decent growth. And as the OECD report notes, 'the global economy is showing signs of improvement.' In other news, yesterday's MBA Mortgage Applications were down -1.4% w/w, with purchases down -1.7% and refi's down -0.7%. Today we'll get Weekly Jobless Claims, and Wholesale Inventories. And tomorrow will be a slow day for economic reports as well with only the Quarterly Service Survey on the docket. What everybody is really waiting for is next week's FOMC announcement on rates on Wednesday, June 14. At the moment, the expectation is for the Fed to pause on rates. But there's a growing belief that they may raise another 25 basis points at the July meeting. So all eyes will be on next week's meeting. In the meantime, stocks continue to perform well. YTD, the Dow is up 1.56%, the S&P 500 is up 11.2%, the Nasdaq is up 25.2%, the small-cap Russell 2000 is up 7.22%, and the mid-cap S&P 400 is up 5.68%. And it looks like there's more upside to go. Especially when you add in the favorable statistical trends of 1) the 4-year Presidential Cycle which shows that year 3 (that's 2023), is the best year of all 4 years (since 1950, stocks have always gone up in the year after midterms, with an average 12-month forward return of 18.6%), and 2) over the last 60 years, if a bear market in the S&P goes down by -25% or more (the S&P was down by -25.4% last year between their bull market high close and their bear market low close), stocks go up on average of 38% a year later (those stats encompass 9 bear markets, with 8 of those seeing stocks up the next year). If you missed the rally so far, or wish you took greater advantage of it, you might be wondering if now is a good time to jump in. If so, be sure to read our latest commentary... [Should You Jump on This Rally?]( Best, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research Sponsor [146 Pounds of Graphite Needed for Each EV]( [image]( Graphite - not lithium - is the largest component of lithium-ion batteries used in electric vehicles. That's why 97 more graphite mines will be needed by 2035 just to keep up with battery demand for the $7 trillion EV market. [See who could benefit from skyrocketing graphite demand]( Most Popular Articles from Zacks.com [Mastering the Double-Bottom Pattern (Unveiling 3 Intriguing Setups in Today's Market)]( Though many technicians often look for double-bottoms, not all are created equal. [Read More »]( [3 Top-Ranked Stocks with Bullish Catalysts]( Analysts seem emboldened by JPMs resolute actions during the banking crisis and have boosted expectations accordingly. [Read More »]( [Regional Bank Stocks Rebound on Expected Pause in Rate Hikes]( U.S. regional bank stocks staged a major rally, with banking indexes regaining some footing despite the reports of stringent capital requirements. [Read More »]( [Keep an Eye on 3 Oil Explorers as Crude Price Rises Again]( We have identified three upstream stocks with upward trending earnings revisions. [Read More »]( [Flashback to the 1960s: The Return of the Nifty Fifty Stocks]( Should investors buy the must-own large cap growth stocks at any price in 2023? [Read More »]( [See ALL Zacks Long-Term Picks for Only $1]( Until Sunday, members are invited to download our Special Report, 5 Stocks Set to Double. One is the personal favorite of Zacks Director of Research, Sheraz Mian. Plus, starting today, you can follow our private long-term portfolios in real time from the best stocks under $10, to Warren Buffett-style value plays, to high-paying dividend stocks, and more. Last year alone, they generated 42 double and triple-digit gains. Recently, we've closed blockbuster wins like +62.3%, +188.3%, and even +348.7%. Total cost $1. No gimmicks. [See Stocks Now »]( [Bull of the Day: e.l.f. Beauty (ELF)]( Earnings momentum takes this cosmetic stock to all-time highs. [Read More »]( [New Zacks Strong Buys for June 8th]( 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 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