Stocks End Mixed For The Week After Last Week’s Inflation Reports

Plus 5 Just-Added Strong Buys Stocks End Mixed For The Week After Last Week’s Inflation Reports [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Mixed For The Week After Last Week’s Inflation Reports [Stocks End Mixed For The Week After Last Week’s Inflation Reports]Image: Bigstock Stocks closed mixed on Friday, and mixed for the week. Actually, to be more precise, all of the major indexes were down for the week except for the Dow. That makes it 2 down weeks in a row for the S&P 500, Nasdaq, small-cap Russell 2000, and the mid-cap S&P 400. Friday's Producer Price Index (PPI) inflation report came in slightly higher than expectations. The headline number was up 0.3% m/m vs. last month's 0.0% pace and views for 0.2%. On a y/y basis it was up 0.8% vs. last month's 0.2% and the consensus for 0.7%. The core rate (ex-food & energy) was up 0.3% m/m vs. last month's -0.1% and views for 0.2%. On a y/y basis it was up 2.4%, in line with last month's pace of the same, but above the consensus for 2.3%. That followed Thursday's Consumer Price Index (CPI) inflation report which came in slightly better than expectations. All in all, last week's inflation picture looks very much like it did before those reports ever came out. Inflation is down from last year's peak, but the pace of easing appears to have slowed. And in regard to wholesale inflation (PPI), it actually ticked up a bit. That does not comport with those hoping for a pause. It suggests inflation is as sticky as the Fed has feared, and that they might very well have to raise rates another 25 basis points come September. This would put them in alignment with what they voiced at their June meeting, which was the terminal rate might land at 5.6%. But we'll still get 1 more Personal Consumption Expenditures (PCE) inflation report, 1 more CPI inflation report, 1 more PPI inflation report, and 1 more Employment Situation report before the next FOMC meeting on September 19-20. But at the moment, last week's inflation reports did not benefit those looking for a pause. Although, one more rate hike notwithstanding, it still looks like the Fed is near the end of their rate hike cycle. And that's still good news. In other news, Friday's Consumer Sentiment report slipped to 71.2 vs. last month's 71.6 and views for 71.3. This week we'll get our normal docket of economic reports. Although, the number of companies reporting earnings will slow. And most of the companies in the S&P 500 have already reported. The S&P 500 over the last two weeks has pulled back by -2.72% (from their highest close 2 weeks ago to Friday’s close), while the Nasdaq has pulled back by -4.96% (from their highest close 4 weeks ago to Friday’s close). We will find out this week if there's more to go, or if the recent pullback has run its course. Stocks pull back roughly -5% on average of 3-4 times per year. So we shall see. But the outlook for stocks right now still looks good. Add in the favorable statistical trends, not the least of which is 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 year 4 (that's 2024) is the second best year, and that bodes well for more upside to go. So if there is more of a pullback, I'd be buying the dip. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [$1 AI Deadline Extended – Today Only]( Tech stocks are hot and Artificial Intelligence (AI) stocks have even greater potential. So we're extending the deadline until midnight tonight to give more of our members 30-day access to our Technology Innovators portfolio. Total cost: $1 and not a cent of further obligation. Just this morning, we posted a new AI pick with almost unimaginable upside. It could beat our recent wins such as +45.3% in 6 days, +46.1% in 17 days, +118.8% in 23 weeks, and +1007.1% in 6 months. Click now for 30-day access to all our tech stocks. No further extensions. Final deadline is Monday, August 14 – midnight tonight. [See Zacks Tech Stocks Now »]( Most Popular Articles from Zacks.com [Momentum Alert: 3 Top Ranked Stocks Primed for a Breakout]( Rather than a sharp downward correction, these stocks have corrected in time and built out some sideways action. [Read More »]( [3 Industry Leaders to Own into Year-End]( With the stock market pulling back to significant support, Stock Strategist Andrew Rocco unveils 3 companies with significant catalysts pushing them higher. [Read More »]( [3 Generic Drug Stocks to Watch Amid Improving Market Prospects]( The impact of macroeconomic headwinds on the Zacks Medical - Generic Drugs industry is gradually improving. [Read More »]( [How to Invest in Commodity Stocks]( With energy stocks rallying again, Stock Strategist Tracey Ryniec covers some tips on navigating cyclical stocks. [Read More »]( [3 Top-Ranked Stocks for Investors Seeking Dividend Income]( Due to their well-established businesses, these companies pay out regular dividends and remain profitable during market volatility. [Read More »]( [Your Exclusive Access to Today's Top ETFs]( Use Zacks ETF Rank to help you select the very best ETFs for your portfolio. This quantitative ratings system takes into account asset class forecasts as well as several ETF-specific factors. All to give you a comprehensive account of a fund's potential before you invest your money. [See Today's Top-Ranked ETFs »]( [Bull of the Day: Holley (HLLY)]( A big beat has investors driving the price for this specialty auto parts manufacturer higher. [Read More »]( [New Zacks Strong Buys for August 14th]( 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 July 3, 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