Stocks Closed Higher On Monday To Start The Second Half

Plus 5 Just-Added Strong Buys Stocks Closed Higher On Monday To Start The Second Half [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher On Monday To Start The Second Half [Stocks Closed Higher On Monday To Start The Second Half]Image: Bigstock Stocks closed modestly higher on Monday in subdued trading given the shortened trading session. Even though it was a half-day, there were still a few economic reports released. The PMI Manufacturing report was first. That came in at 46.3, in line with expectations, but below last month's 48.4. The ISM Manufacturing Index came in at 46.0, down from last month's 46.9, and views for 47.3. That was the seventh month in a row of contraction. (For context, it also follows 28 months in a row of expansion.) And Construction Spending rose 0.9% m/m vs. last month's downwardly revised 0.4% (from 1.2%), and estimates for 0.5%. On a y/y basis it's up 2.4%. Although, that's down from last month's pace of 7.2%. Today we'll get Motor Vehicle Sales, MBA Mortgage Applications, and the Factory Orders report. We'll also get the FOMC Minutes from the last Fed meeting. Between last month's official Fed statement, and Fed Chair, Jerome Powell's Press conference, I don't expect any new revelations. But given the importance of the Fed and the current interest rate hike cycle, you can be sure it will be scrutinized. OPEC+ also meets. They begin their 2-day meeting in Vienna, Austria. An announcement on production cuts or increases (or neither), is expected tomorrow at the conclusion. The market ended a strong first half of the year. It was the best start for the S&P in 4 years. And the best start for the Nasdaq in 40 years! All in all, the Dow finished the first half up by 3.80%, with the S&P up 15.9%, the Nasdaq up 31.7%, the small-cap Russell 2000 up 7.24%, and the mid-cap S&P 400 up 7.90%. And with the indexes all up on Monday, the second half is already off to a good start. Expectations are running high this year given the favorable statistical trends: 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 finishing in the green). So it looks like there's plenty more upside to go for the second half. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Just Released: 4 Stocks for Biggest Upside in Q3]( Four Zacks experts each announce their single favorite stock to gain the most in the next three months: Stock #1: Look out NVIDIA, this chip rival is sneaking up, adding major partners and customers. Stock #2: Footwear company soared to record highs. In fact, they're up almost +1000% over the last 10 years, launched a billion-dollar stock repurchase program, and hold nearly a billion in cash. Stock #3: While Artificial Intelligence sent NVIDIA through the roof, a much smaller company primes for the next generation of AI. Stock #4: Dining/entertainment company completed a major acquisition and now targets a 20%+ ROI. Get ready for its potentially blockbuster "Golden Cross." 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