Stocks End Mixed, But Small-Caps And Mid-Caps Lead With Big Gains

Market Moves You Need to See Stocks End Mixed, But Small-Caps And Mid-Caps Lead With Big Gains [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Mixed, But Small-Caps And Mid-Caps Lead With Big Gains [Stocks End Mixed, But Small-Caps And Mid-Caps Lead With Big Gains]Image: Bigstock Stocks closed mixed yesterday with the Dow up 0.04%, while the S&P and Nasdaq were down -0.01% and -0.25% respectively. But the mid-cap S&P 400 was up 1.15%, and the small-cap Russell 2000 was up 1.09%. The day got started yesterday with solid earnings beats from many large-cap stocks, including Bank of America (+11.11% positive EPS surprise), Goldman Sachs (+2.82% EPS surprise), Johnson & Johnson (+5.56% EPS surprise), Lockheed Martin (+1.65% EPS surprise), and United Airlines (+7.35% positive EPS surprise) to name a handful. Nonetheless, the big three indexes all opened lower. Although, they turned positive midday, before finally giving up most, if not all of their intraday gains. The small-caps and mid-caps opened lower as well. But turned around rather quickly. And never gave up their gains once they got into the green. In other news, Retail Sales came in a bit hotter than expected with a m/m gain of 0.7% vs. the consensus for 0.3%. Actually, once that report came out before the open, futures turned lower than they were. Maybe on the idea that a hotter economy could augur for a another rate hike. But I think yesterday's early pullback was more profit taking after Monday's strong gains than anything else. Industrial Production also came in better than expected with a 0.3% m/m increase vs. views for 0.0%. Manufacturing Output was up 0.4% vs. the consensus for -0.1%. And the Capacity Utilization Rate came in at 79.7% vs. estimates for 79.6%. Business Inventories rose 0.4% m/m vs. last month's 0.01% and views for 0.3%. Although, the Housing Market Index fell to 40 vs. last month's 45 and views for the same. Today we'll get MBA Mortgage Applications, the Housing Starts and Permits Report, and the Beige Book report. We'll also get more earnings with Proctor & Gamble, Abbott Labs, and Morgan Stanley reporting before the open. And then Tesla and Netflix reporting after the close. All in all we'll hear from 78 companies reporting earnings today. There's still plenty of unease in the world with the Ukraine/Russia war, and the Israel/Hamas war. While the U.S. is providing support to both allies, the U.S. is not directly involved. And thus far, at least from the markets standpoint, and aside from worries over energy prices and possible supply chain disruptions, it has not had any impact on business earnings or the larger economy. And that's why stocks have largely been unaffected. Although, things can always change. For now, the market is focused on earnings. Earnings season is off to a great start. And since stocks typically go up during earnings season, it's an optimistic time in the market. Same goes for the statistical trend that shows if the market is up more than 10% thru July (which it was), and August is down (which it was), the remainder of the year is up 100% of the time with an average gain of 9.9% (median of 8.7%). Both portend a rally in stocks. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [5 Stocks to Buy Immediately]( Investing titan Luke Lango has an impressive track record of calling innovation stocks before they skyrocket...like TSLA soaring 3628%, AMD 8290%, and GME before it launched 12096%. Now he's revealing his top 5 stocks for the AI Revolution, starting at under $2 a share. 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