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Tuesday provided yet another confirmation of the strong market bias. That being where bad news is actually good news for stocks. How else can you explain a shockingly poor ISM Services report on Tuesday leading to stock market gains???
Once again, it all comes down to this equation:
Low rates + no recession = stock market gains
So yes it is true that the 51.4 reading for ISM Services was well under the 55.0 expected. However, it still says the economy is expanding with little fear of recession. But because it was a soft result, on top of the weak manufacturing data from last week, it makes it harder for the Fed to raise rates. This keeps the scales tilted towards a bull market thanks to the more attractive Earnings Yield of stocks.
Best,
Steve Reitmeister
Executive Vice President, Zacks Investment Research
Steve heads up all the trading and investment services at Zacks.com, so people naturally ask: "Where are you investing YOUR money?"
Today, take an exclusive look inside his portfolio and see for yourself. Steve's uncanny market calls bring gains in all kinds of market conditions. Now he has 12 must-buys in the portfolio with more to follow. Don't miss them. Your chance for access ends Midnight Sunday, September 11.
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Tuesday provided yet another confirmation of the strong market bias. That being where bad news is actually good news for stocks. How else can you explain a shockingly poor ISM Services report on Tuesday leading to stock market gains???
