Back to top

Free: Subscribe to Profit from the Pros

Zacks' Bull Stock of the Day, morning market e-briefing, strategies for picking the best stocks, funds, ETFs, and options plus more.

Join 500,000+ investors in-the-know.

Privacy Policy

View the PFP Archive

Profit from the Pros

Market Waiting For Friday's Spending Bill And Employment Report

The markets pulled back yesterday as traders brace for a flurry of news at the end of the week.

While there's great enthusiasm for a final tax cut bill getting to the President's desk by Christmas, there are a few events that have traders a bit cautious this week.

We have the spending bill deadline this Friday (Dec. 8th) to avoid a government shutdown.

And we have the always important Employment Situation report (last one for the year) also due on Friday.

Additionally, there's been plenty of chatter lately that President Trump might recognize Jerusalem as Israel's capital this week. This could be met with widespread protests. There's little correlation between that and the market. But unrest of any sort, especially when the market is already on edge for other things, isn't great.

But the spending bill deadline and the employment numbers are really the key issues this week with the spending bill getting top billing.

In other news, yesterday's Redbook numbers showed a y/y rate of change of 3.0%. This was down from last month's print of 4.8%.

The PMI Services Index slipped to 54.5 from last month's 55.3. But came very close to expectations for 54.7. In spite of the slight downtick, analysts commented that it still showed solid growth with new orders at a 3-month high.

The ISM Non-Manufacturing Index saw the same thing, ticking down to 57.4 from last month's 60.1, and just missing views for 59.0. Analysts once again pointed to the 'very strong rate of growth' in spite of the slight pullback. The highlighted components continue to be new orders, employment, and backlogs.

After the last couple of fantastic weeks we've had, a small pullback is no big deal. And it's actually quite healthy.

There might be some chop until we get past this week's events. But I'm still expecting green arrows by month's end.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

Sponsor

30 Stocks to Buy for 2018

Investing in this small group of 30 stocks is the most reliable way to make big money from the markets in 2018. I didn't believe it myself at first, but I did the math three times ? and got my research team to check my numbers. What we discovered is that just 30 stocks have generated $300 million in windfall profits every day for the last 90 years. All other stocks average about two pennies of profit for every dollar these stocks generate daily!

Get the full story in this free video briefing. Watch it here.

Most Popular Articles from Zacks.com

5 Best Profitable Stocks to Buy in December

Net income ratio gives us the exact profit level of a company and reflects the percentage of net income to total sales revenues. Read More »

Five Huge Stocks Leading the Market Higher

Dave Bartosiak uncovers five Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks which are breaking out to new 52-week highs. Read More »

The Power of New Analyst Coverage

Broker recommendations -? love them or hate them, they do have their place. And we all look at them eventually. Read More »

3 Tech IPOs We Want in 2018

Ryan McQueeney looks ahead to 2018 and highlights three private tech companies that he would like to see go public in the upcoming year. Read More »

Transportation Stocks Surge as Senate Passes Tax Bill

As various market watchers seem to debate over the pros and cons of the tax reform bill, we expect transportation stocks in the United States to be a major beneficiary. Read More »

Sponsor

Why Haven't You Looked at Zacks' Top Stocks?

Our 5 best-performing strategies have blown away the S&P's +27.19% gain from 2016 through Q3 2017. Amazingly, they soared +60.5%, +101.7%, +189.3%, +218.4%, and +266%.

Today you can access their live picks without cost or obligation.

See Stocks Free >>>

Bull of the Day: Gol Linhas Aereas Inteligentes (GOL)

Management more than doubled EPS guidance for FY 2017. Read More »

New Zacks Strong Buys for December 6th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Customize Your Profit from the Pros Delivery
Connect with Us:
Facebook
Twitter
StockTwits
Contact Info:

Phone: 1.800.767.3771 ext. 9339
Email: support@zacks.com