Stocks End Lower, All Eyes On This Morning’s PCE Inflation Report

Market Moves You Need to See Stocks End Lower, All Eyes On This Morning’s PCE Inflation Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, All Eyes On This Morning’s PCE Inflation Report [Stocks End Lower, All Eyes On This Morning’s PCE Inflation Report]Image: Bigstock Stocks closed lower again yesterday with the big three indexes all finishing in the red. The day started like all the others this week -- with a slew of earnings. Lots of positive EPS surprises as well from the likes of Mastercard, Merck, UPS, Bristol Myers Squibb, and Northrop Grumman to name and handful. But in spite of some impressive beats. Most ended lower on the day. After the close we heard from mega-cap Amazon and they posted a positive EPS surprise of 46.5%, and a positive sales surprise of 1.10%. That translated to a quarterly EPS growth rate of 325% vs. this time last year, and a sales growth rate of 12.6%. They were down in the regular session by -1.50% before they reported, but were trading higher by roughly 5% in after-hours. Intel, another marquee name, posted a positive EPS surprise of 95.2%, and a positive sales surprise 4.91%. That equated to a quarterly EPS growth rate of -30.5% vs. this time last year, and a negative sales growth rate of -7.69%. They were down by -0.94% in the regular session before earnings, but jumped more than 8% in after-hours trade. In other news, yesterday's advance estimate for Q3 GDP came in hotter than expected at 4.9% vs. views for 4.2%. For context, Q2 came in at 2.1%. So there was a sharp acceleration in economic activity in Q3. Weekly Jobless Claims rose by 10,000 to 210,000 vs. views for 208,000. The 4-week moving average, however, came in at 207.5K. The Kansas City Manufacturing Index came in at -8, the same as last month. But the Durable Goods Orders report showed New Orders up 4.7% m/m vs. last month's 0.2% and estimates for -0.1%. Ex-transportation it was up 0.5% vs. the consensus for 0.2%. Core Capital Goods rose 0.6% vs. views for 0.0%. And the Pending Home Sales Index increased 1.1% m/m vs. last month's -7.1%, and estimates for -1.0%. The Index came in at 72.6 vs. last month's This morning comes the report everyone has been waiting for, and that's the Personal Consumption Expenditures (PCE) index. This is the Fed's preferred inflation gauge. The estimates are calling for the headline number to be up 0.3% m/m, and 3.4% y/y vs. last month's 3.5%. The core rate (ex-food and energy) is expected to be up 0.3% m/m, and 3.7% y/y vs. last month's 3.9%. All eyes will be on today's report as this will be the last inflation data the Fed gets before next week's FOMC announcement on Wednesday, November 1. We'll also get more earnings with 122 companies on deck to report including Exxon Mobile, AbbVie, and Colgate-Palmolive to name a few. Stocks are on pace for another down week. But a friendly PCE report that shows inflation continuing on the decline could help buoy the market and eat into the weekly losses. The PCE report comes out at 8:30 AM ET. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [5 Stocks Set to Double: Sunday Deadline]( There's still time to get in on our just-released 5 Stocks Set to Double Special Report. Each pick is the single favorite of a Zacks expert with the best chance to gain +100% and more in the months ahead: Stock #1: a biopharmaceutical trailblazer driving advancements in neurology and dermatology Stock #2: manages and owns one of the biggest private land portfolios in the country Stock #3: a global leader in cloud services reshaping how businesses handle IT infrastructure Stock #4: reinventing how companies around the world fortify their internet operations Stock #5: evolving the recruitment and hiring landscape in an innovative virtual space. Previous editions have racked up gains of +143.0%, +175.9%, +498.3%, and even +673.0%. Deadline to download the new report is midnight Sunday, October 29. [See Stocks Now »]( Most Popular Articles from Zacks.com [4 Industrial Stocks Set to Outperform Q3 Earnings Estimates]( Despite weak demand, improving supply chains and cost-control efforts are expected to drive Q3 results of these stocks. [Read More »]( [What's in Store for Microsoft (MSFT) After Blowout Earnings?]( Microsoft's expected earnings growth rate for the current year is 11.3% and shares are estimated to scale up by 14.1% next year. [Read More »]( [Q3 Earnings Season Scorecard - Earnings Growth Turns Positive]( This is the first time quarterly earnings are on track to be positive after three back-to-back quarters of declines for the S&P 500 index. [Read More »]( [After This Correction, Time to Buy Stocks?]( Zacks Chief Equity Strategist and Economist John Blank recommends the best time to start buying stocks again. [Read More »]( [Bitcoin: Store of Value or Currency?]( Evidence is mounting that Bitcoin is not only a trading vehicle but is becoming a real-world currency and a store of value. [Read More »]( [Start Every Day Ahead of Wall Street]( Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news »]( [Bull of the Day: Applied Industrial Technologies (AIT)]( This Zacks Rank #1 stock has a compounded annual rate of 16.2%. [Read More »]( [New Zacks Strong Buys for October 27th]( 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 September 4, 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