We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Worldwide traders are addicted to Central Bank easing. Those lower rates make stocks all the more attractive by comparison. Thus, stocks often move based upon the odds of more easing (or in the case of the US...no further rate hikes).
In that light, the stock market action on Monday made perfect sense as manufacturing data was released from all corners of the globe. Investors cheered signs of things getting worse. Yes, worse.
For example, the jump in US March manufacturing data was reversed in April with the well under expectations reading of 50.8...barely in expansion territory. This sign of poor economic health decreases the odds of a rate hike which makes stocks more attractive which led to a +0.8% gain for the S&P 500 on Monday.
This model for stock market movement works ONLY if the data shows some growth...even if anemic like this reading barely above the all-important 50 level. However, if growth goes negative, then it hurts corporate earnings which would put pressure on stock prices.
I find this to be a dangerous game of betting on higher stock prices because of poor economic data. Simply it is dubious to bet more on this rally until there are actually signs of growth worth cheering.
Best,
Steve Reitmeister
Executive Vice President, Zacks Investment Research
Others pay thousands of dollars to see such privileged, sensitive information. But starting now, you can receive a hand selection of the Best of Our Best, just 2-3 buy recommendations each week at a tiny fraction of their worth.
Access to these exclusive trades costs less than any other Zacks' service. No wonder it's by far our most popular.
Beaten down oil companies currently offer attractive yields to those willing to take the risk. If oil continues higher, risk will fade and profits will add up.
Amazon (AMZN), Facebook (FB), LinkedIn (LNKD) and Expedia (EXPE) reported solid results and share price appreciation while Apple was one of the biggest disappointments.
This key insight has reshaped stock investing forever. It led to gains averaging an incredible +26% per year since 1988—nearly tripling the S&P 500 even through recessions, corrections and downturns. Now it can change your investing life and point you to the best stocks with the greatest profit potential.