Stocks Close Higher As Tech Leads The Way

Plus 5 Just-Added Strong Buys Stocks Close Higher As Tech Leads The Way [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Close Higher As Tech Leads The Way [Stocks Close Higher As Tech Leads The Way]Image: Bigstock Stocks closed mixed yesterday, but mostly higher with the S&P up 0.69%, and the Nasdaq up 1.56%. Not much in the way of economic reports out yesterday. But news that analysts at HSBC and KeyBanc upgraded their price outlook on tech-powerhouse Nvidia, sent shares up by 8.47%, along with the indexes they're in. NVDA is now trading about 1% away from their all-time closing high from last month. And they are set to report earnings on Wednesday, August 24, after the close. In the meantime, we'll get more retail earnings today with Macy's, Lowe's, Dick's Sporting Goods, Urban Outfitters, and BJ's Wholesale Club to name a handful. We'll also get the Existing Home Sales report, and the Richmond Fed Manufacturing Index. Over the last several weeks, profit taking has seen the market pull back by as much as -3.24% for the Dow, -4.78% for the S&P, and -7.43% for the Nasdaq. But this is normal as stocks usually pull back about -5% roughly 3-4 times per year. (A pullback is defined as a decline between -5% and -9.99%.) Pullbacks happen in every bull market. And pauses like these help refresh and strengthen the market before their next leg up. And with stocks already in the general range of your typical pullback, we could very well be near the point where stocks start heading back up. (Like yesterday.) Uncertainty over inflation and what the Fed does with interest rates at their next meeting on September 19-20 will continue. But it's pretty clear that peak inflation is behind us (even though it's still too high), and that the Fed is nearing the end of their historic rate hike cycle. Whether it's 1 more hike, 2 more hikes, or no more hikes remains to be seen. But again, give or take one or two more (or none more), it's nearing the end, and that bullish for stocks. The U.S. economic outlook is also bullish. After a stronger than expected Q1 GDP (up 2.0% vs. expectations for 1.1%), and a stronger than expected Q2 GDP (2.4% vs. expectations for 1.5%), Q3 GDP looks set to soar with the Federal Reserve Bank of Atlanta, via their GDP Now forecast, estimating Q3 to come in at 5.8%. Impressive numbers. And that suggests plenty more upside for stocks. 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. 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