Stocks End Lower Last Week, Ending A 5-Week And 8-Week Winning Streak For The S&P And Nasdaq

Plus 5 Just-Added Strong Buys Stocks End Lower Last Week, Ending A 5-Week And 8-Week Winning Streak For The S&P And Nasdaq [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower Last Week, Ending A 5-Week And 8-Week Winning Streak For The S&P And Nasdaq [Stocks End Lower Last Week, Ending A 5-Week And 8-Week Winning Streak For The S&P And Nasdaq]Image: Bigstock Stocks closed lower on Friday and for the week. That ended the S&P's winning streak at 5 weeks, and the Nasdaq's at 8 weeks. Although, after such an impressive rally over the last 1-2 months, there was bound to be some profit taking. And that's likely what we are seeing. After 2 inflation reports, and the FOMC announcement 2 weeks ago, it was a rather dull week last week in terms of economic reports. (And a perfect time to book some profits.) But things will heat up again this week on Friday with the Personal Consumption Expenditures (PCE) index (which is the Fed's preferred inflation gauge). And then next week we'll get the always important Employment Situation report. (Not to mention the Fourth of July Holiday getting sandwiched in between.) Earnings season will also start ramping up. While it doesn't officially start for another 3½ weeks on July 19, when Alcoa reports after the close (they have long been considered the official start of earnings season), it has already unofficially begun. This week we’ll get 440 companies set to report. In the meantime, inflation is well off last year's highs. And while it could be falling faster, it's clear peak inflation is behind us. In an effort to speed things up, the Fed believes as many as 50 more basis points (2 more 25 bps rate hikes), should be enough to set inflation on its desired course of getting back down to its 2% target a little quicker. Nonetheless, Fed Chair, Jerome Powell said they will move at a "careful pace." The economy continues to grow. Q1 GDP came in at 1.3%. And Q2 is estimated at 1.9%. The labor market remains strong. Personal incomes are hovering near all-time highs. And the statistical trends are in the market's favor: 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 (and those stats encompass 9 bear markets with 8 of those seeing stocks up the next year). If we're lucky enough to see a little more profit taking, I would be buying the dips. But if not, buying strength works too. Either way, it looks like there's plenty more upside to go this year. So make sure you're taking full advantage of it. Best, [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% +55.2% per year. Today you can access their live picks without cost or obligation. [See Stocks Free »]( Most Popular Articles from Zacks.com [Profiting from the 3rd Wave of the App Economy]( The third wave of the application economy will be driven by the onset of VR headsets and Artificial Intelligence. [Read More »]( [Hidden Gems: 2 Undervalued Tech Stocks Flying Under the Radar]( Trading at historically cheap valuations, these tech stocks have quietly become quite attractive. 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