Stocks Closed Higher On Friday, Nasdaq Caps Off Best First-Half In 40 Years!

Plus 5 Just-Added Strong Buys Stocks Closed Higher On Friday, Nasdaq Caps Off Best First-Half In 40 Years! [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher On Friday, Nasdaq Caps Off Best First-Half In 40 Years! [Stocks Closed Higher On Friday, Nasdaq Caps Off Best First-Half In 40 Years!]Image: Shutterstock Stocks closed sharply higher on Friday, and for the week, the month, and the first half of the year. That makes it 4 months in a row of gains for the S&P and Nasdaq. And YTD, the Dow is up 3.80%, the S&P is up 15.9%, the Nasdaq is up 31.7%, the small-cap Russell 2000 is up 7.24%, and the mid-cap S&P 400 is up 7.90%. It was the S&P 500's best first-half performance in 4 years (2019), and the Nasdaq's best in 40 years (1983). Friday's morning's Personal Consumption Expenditures (PCE) index showed inflation for May came in slightly better than expected. The headline number was up 0.1% m/m, which was in line with expectations. On a y/y basis it came in at 3.8%, also in line with expectations. The core rate was up 0.3% m/m vs. the consensus for 0.4%. While the y/y rate was up 4.6% vs. expectations for 4.7%. Not a huge beat. But many were expecting the worst. So simply meeting, and slightly beating expectations had the market cheering. Of course, inflation is still too high. And Friday's report in unlikely to deter the Fed from at least one more 25 basis point rate hike, if not two. But there was also nothing in there to suggest they need to go beyond that. And that means we are still closer to the end of the rate cycle than not, and that's bullish. The next Fed meeting is July 25-26. In other news, the Chicago PMI increased to 41.5 vs. last month's 40.4, although missing the consensus for 44.2. Consumer Sentiment, however, beat last month and the consensus coming in at 64.4 vs. last month's 63.9 and views for the same. We'll have a full docket of economic reports this week, even with the markets being closed on Tuesday for the Fourth of July holiday. But the main event, economic report-wise, will be Friday's always important Employment Situation report. The labor market has remained strong. And the consistent job gains has helped dispel this year's early calls for a recession. If it comes in too hot, that could spook some to believe rates could go even higher than the Fed's 5.60% terminal rate forecast. Too weak, and it could renew concern over the potential for a future recession. But if 'just right' (not too hot or too cold), it should underpin the market once more and show the economy, and thus stocks, have more room to go without any unnecessary disruptions. So all eyes will be on Friday's jobs report. Until then, we have much of the trading week to get thru first. Note: the market will close early today at 1:00 PM ET. And it will be closed tomorrow on Tuesday, July 4th. Regular trading will resume on Wednesday. In the meantime, have a great trading day today. And have a happy Fourth of July! See you on Wednesday, [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% and +55.2% per year. Today you can access their live picks without cost or obligation. [See Stocks Free »]( Most Popular Articles from Zacks.com [3 Red-Hot Tech Stocks With Big Growth]( With the Nasdaq delivering an unbelievable first half, these stocks have witnessed significant growth. [Read More »]( [3 Highly-Ranked Stocks to Buy in July for the Second Half of 2023]( We selected three highly-ranked stocks from different areas of the economy that investors should consider. 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