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Zacks #1 Stocks on the Move 05/23/2013

Company Name Symbol %Change
WESTELL TECH WSTL
5.13%
MAXWELL TECH MXWL
3.26%
ALLIANCE FIB AFOP
3.00%
SYNAPTICS IN SYNA
2.99%
STEIN MART I SMRT
2.65%
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Dear Subscribers,

For as important as GDP normally is to the stock market...it was not culprit on Friday. In fact, stocks were up at the open given that most investors appreciated that the internal components of the report made it much stronger than the headline +3.2% showing. In particular, the strength of the US consumer was apparent which bodes well for the continuation of the economic recovery. Just don't be surprised if Q4 GDP gets revised upwards on the next iteration.

The real reason for the selloff is all the unrest in the Middle East. It is becoming a powder keg once again that sparked a "flight to safety" trade on Friday. That was good for gold, oil and treasuries...and not much else.

What to do now? This may develop into a more serious scenario. Or it blow over soon where we quickly find ourselves ready to break above Dow 12,000. My recommendation is to sit tight as odds are better that we will go higher in the future because GDP and corporate earnings are on track. It just might be a bumpy ride.

Featured Commentaries on Zacks.com
•  PFP-TV: 3.2% GDP and Dow 12,000
•  Where the Q4 Growth Came From
•  Oil & Gas Industry Outlook - Jan. 2011
•  Ahead of Wall Street for Monday Jan. 31st: Start the week off right with this popular daily commentary.

Best,

Steve Reitmeister
Executive VP, Zacks Investment Research

 

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