Stocks Closed Mostly Lower Yesterday, Inflation Report On Deck For Later This Week

Plus 5 Just-Added Strong Buys Stocks Closed Mostly Lower Yesterday, Inflation Report On Deck For Later This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Mostly Lower Yesterday, Inflation Report On Deck For Later This Week [Stocks Closed Mostly Lower Yesterday, Inflation Report On Deck For Later This Week]Image: Bigstock Stocks closed mixed yesterday, albeit mostly lower, with the Nasdaq and Dow leading the decliners with -1.16% and -0.45% respectively. But the Dow was only down -0.04%, while the small-cap Russell 2000 was up 0.09%. And the mid-cap S&P 400 was up 0.78%. As I mentioned last week, 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 saw last week and now. But in spite of the recent volatility, stocks look poised for more gains once this current pullback is over. The day got started yesterday with a report that Goldman Sachs on Sunday downgraded Tesla, putting it at a neutral rating vs. it's previous buy rating. In another story it was reported that Cathy Wood's, Ark Investment Management sold more than 27.8K shares on Friday (for approximately $7.1 million). TSLA was down roughly -6% yesterday, but is up more than 95% YTD. On the economic report front yesterday, the Dallas Fed Manufacturing Survey improved to -23.2 vs. last month's -29.1 and views for -26.5. The Production Index, however, slipped to -4.2 vs. last month's -1.3. Today we'll get Durable Goods Orders, the Case-Shiller Home Price Index, the FHFA House Price Index, New Home Sales, and the Richmond Fed Manufacturing Index. But the big report everybody is waiting for is Friday's Personal Consumption Expenditures (PCE) index (which is the Fed's preferred inflation gauge). At the Fed's last FOMC meeting, they noted that inflation was still too high, with Fed Chair, Jerome Powell specifically citing the core PCE index. You'll recall that the PCE index actually ticked up last month, contrary to the CPI and PPI reports which showed inflation ticking lower. With core PCE at 4.7%, it's still down from last year's high of 5.3%. But it's clearly not falling fast enough. In fact, they went so far as to increase their end-of-year core PCE forecast to 3.9% vs. their previous 3.6%. So all eyes will be on Friday's PCE index. Then next week we'll get the always important Employment Situation report. Looks like it will be a busy couple of weeks. In the meantime, stocks are off to a great start this year. And given the outlook for more gains this year, I would be looking at the current pullback as a buying opportunity. Because it looks like there's a lot more upside to go. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [See Zacks' Top Stocks for Free]( Starting today, you can get instant access to the latest picks from our time-proven strategies which since 2000 have soared far above the market. While the S&P 500 averaged +6.2% per year, our top strategies averaged gains as high as +46.4%, +49.5% and +55.2% per year. You'll also get our free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. [See Stocks Free »]( Most Popular Articles from Zacks.com [Facts vs. Feelings: Dissecting Monday's Tech Pullback - June 26, 2023 - Zacks.com]( Despite the S&P 500 and NASDAQ retreating Monday, the market showed underlying strength "beneath the surface." 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