Stocks End Mostly Higher Yesterday, On Track To Close Higher For The Week And Month

Plus 5 Just-Added Strong Buys Stocks End Mostly Higher Yesterday, On Track To Close Higher For The Week And Month [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Mostly Higher Yesterday, On Track To Close Higher For The Week And Month [Stocks End Mostly Higher Yesterday, On Track To Close Higher For The Week And Month]Image: Bigstock Stocks closed mostly higher yesterday with the small-cap Russell 2000 and mid-cap S&P 400 leading the way with gains in excess of 1.20% each. Wednesday afternoon's stress test results, which showed the banking sector "remains strong and resilient," lifted many of the smaller and mid-sized financial stocks that were hit when SVB collapsed and fears of contagion set in a few months ago. But the rally extended beyond just that segment as evidenced by the outsized gains in the Dow and S&P 500. In other news, yesterday's 3rd and final estimate for Q1'23 GDP came in better than expected at 2.0% vs. the previous estimate of 1.3% and views for 1.4%. Q1's personal consumption expenditures component also rose more than expected to 4.2% vs. last month's 3.8% estimate. Granted, that's for Q1. And it's now almost July. But the higher than expected PCE could very well provide some foreshadowing for this morning's current PCE reading. More on that in a moment. Weekly Jobless Claims fell -26,000 to 239K, well below the consensus which estimated an increase to 270K. The Pending Home Sales Index fell -2.7% m/m vs. views for -0.6%, coming in at 76.5. And Corporate Profits improved to -5.1% y/y vs. last month's snapshot of -6.0%. With inventory & consumption adjustments, it was down -1.9% vs. last month's -2.8%. Today we'll get the report everybody's been waiting for -- the Personal Consumption Expenditures (PCE) index. This is the Fed's preferred inflation gauge. The core rate last came in at 4.7%, which was an uptick from the previous month's 4.6%, surprising many given that the CPI and PPI reports prior to that both showed y/y decreases. The Fed specifically cited core PCE in the latest FOMC announcement as one of the reasons why they believe more rate hikes are needed to bring it down. They even upped their end-of-year inflation forecast to 3.9% from their previous estimate of 3.6%. To be clear, core PCE is down from last year's peak of 5.3%. And their forecast for 3.9% clearly shows that inflation is expected to decline even further. But the elevated stickiness remains a concern for the Fed. And that's why every PCE report has become one of the key data points in gauging what the Fed will or won't do. That comes out this morning at 8:30 AM ET. While that will be today's main event, we'll also get the Chicago PMI, and Consumer Sentiment. Today will also be the last trading day of the week, the month, and the first half. All of the major indexes are tracking higher for the week and the month. In fact, it would be the 4th month in a row of gains for the S&P and Nasdaq. And with one more day to go, the indexes are showing YTD gains of 2.94% for the Dow, 14.5% for the S&P 500, 29.9% for the Nasdaq, 6.83% for the small-cap Russell 2000, and 7.20% for the mid-cap S&P 400. And it looks like there's plenty more upside to go for the second half of the year. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Look Inside All Zacks' Private Portfolios. Only $1.]( Through good markets and bad, one unique stock-picking method has more than doubled the market's average gain with an incredible +24.2% per year. A $10,000 investment in 1988 could have grown to $20.8 million today. By closely tracking the most influential force impacting stock prices, the Zacks Rank has arguably become the most powerful predictive tool in the investing world. Starting today, we'll open the vault for one month so you can see all our real-time buys and sells. Total cost $1, and not a cent of further obligation. Special opportunity ends at midnight Sunday, July 2. [See Stocks Now »]( Most Popular Articles from Zacks.com [2 Cruise Stocks Boosting the S&P 500 Rally in 1H 2023]( With pent-up demand and travel curbs being lifted this year, these two cruise companies racked up solid gains. [Read More »]( [AI Stocks: Too Late to Invest?]( Just because you missed the first part of the AI rally move doesn't mean it's over. [Read More »]( [3 Dividend Kings Yielding Royal Sums]( These stocks have not only survived a huge range of different adverse economic environments, but have managed to increase cash returned to investors. [Read More »]( [Looking for Dirt-Cheap Large Cap Stocks?]( Hint: you won't find these companies in America. But you may want to ask Warren Buffett for pointers. [Read More »]( [2H 2023 Market Outlook & Thematic ETF Ideas]( Director of ETF Research Neena Mishra talks with Global X CIO Jon Maier about how investors should position their portfolios now. [Read More »]( [What's Today's Top Rated Mutual Fund?]( Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family. [Get started now »]( [Bull of the Day: Wingstop Inc. (WING)]( WING is up more than 40% year-to-date with big projected growth for 2023. [Read More »]( [New Zacks Strong Buys for June 30th]( 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 more—daily 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