Stocks Extend Their Gains, On Pace To Close Higher For The 7th Week In A Row

Market Moves You Need to See Stocks Extend Their Gains, On Pace To Close Higher For The 7th Week In A Row [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Extend Their Gains, On Pace To Close Higher For The 7th Week In A Row [Stocks Extend Their Gains, On Pace To Close Higher For The 7th Week In A Row]Image: Bigstock Stocks closed higher again yesterday, adding to Wednesday's post-FOMC announcement gains. The small-cap Russell 2000, and the mid-cap S&P 400, once again, led the way with gains of 2.72% and 2.37% respectively. With the Fed all but calling an end to their historic rate hike cycle, and forecasting more rate cuts in 2024 than previously expected, stocks have been cheering the news. Prior to Wednesday's Fed announcement, traders weren't expecting rate cuts until May. But after the Fed's dovish stance, many are moving that date up to March, including Goldman Sachs. The key takeaways from Wednesday's Fed meeting are: 1) They are estimating 3 rate cuts next year (presumably 25 basis points each for a total of 75 basis points), which is 1 more rate cut than their previous estimate. In fact, they see 3 rate cuts in 2024; 4 rate cuts in 2025; and 3 rate cuts in 2026. That would put the Fed Funds midpoint at 4.63% in 2024; 3.63% in 2025; and 2.88% in 2026. (Currently it's at 5.38%.) 2) They estimate inflation (currently at 3.5% y/y), will end under 3% by year's end. They expect it to fall to 2.4% in 2024; 2.1% in 2025, and 2.0% in 2026. 3) They expect GDP to finish at 2.6% for the year in 2023; 1.4% in 2024; and then 1.8% in 2025. 4) And they expect the unemployment rate, currently at 3.7%, to rise to 4.1% in 2024 and 2025. In other news, yesterday's Weekly Jobless Claims fell by -19,000 to 202,000 vs. the consensus for 221,000. Although, the smoother 4-week moving average came in at 213.25K. Retail Sales came in stronger than expected, gaining 0.3% m/m vs. last month's downwardly revised -0.2% (from -0.1%), and estimates for -0.1%. Ex-vehicles it was up 0.2% vs. views for -0.1%, and ex-vehicles & gas it was up 0.6% vs. views for 0.1%. And Business Inventories slipped -0.1% vs. last month's downwardly revised 0.2% (from 0.4%), and the consensus for 0.0%. Today we'll get the Empire State Manufacturing Index, Industrial Production, and the PMI Composite report. It's also Quadruple Witching, which is when index futures, stock futures, index options, and stock options all expire. So there could be some extra volatility today. With one more day to go, stocks are poised to put in yet another up week, with the big three indexes extending their winning streak to 7 weeks in a row. The blistering Q4 rally continues to impress. And with two more weeks left in the year, stocks appear to have their sights set on making new all-time highs before it's over. The Dow accomplished that on Wednesday. The S&P has only 2.10% more to go to do the same. There's a longer ways to go for the Nasdaq Composite which needs another 9.83%. Although, the Nasdaq 100 is only 1.37% away. What a year it's been so far. And it's not done yet. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Time's almost up! Get your FREE copy of Finding #1 Stocks - A $49.95 Value]( The Executive Vice President of Zacks Investment Research, Kevin Matras, continues to feel optimistic about our country’s financial future. Stocks are currently rallying, but volatility remains. So what’s the key to being successful in today’s market conditions? Knowing the right strategies and where to find stocks that will lead the market. For a limited time, Kevin is offering his hardcover book, Finding #1 Stocks , absolutely free. In the book, he shares exclusive secrets to picking stocks, including the exact formulas of strategies that produced gains up to +39.7%. This brief opportunity will end at midnight Saturday, December 16 or when inventory is depleted. Don’t miss your chance to get an edge in the game. [Get your FREE book now »]( Today's Top Research [REITs Rejoice as the Fed Indicates Three Rate Cuts in 2024]( The encouraging signal from the Fed has driven REITs higher. [Read More »]( [3 Stocks to Watch From Leisure & Recreation Services Industry]( The robust demand for concerts, improving bookings for cruise operators and higher per capita spending at theme parks are supporting the industry. [Read More »]( [5 Best-Performing Technology ETFs of 2023]( Given the broad-based rally across the sector, we have highlighted five best-performing ETFs from different industries that have made technology the best performer. 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