Back to top

View the PFP Archive

Profit from the Pros

Nasdaq And Russell 2000 Index Make New All-Time Highs - Again!

The markets closed mostly higher yesterday, with the tech-heavy/small-cap dominated Nasdaq and the Russell 2000 Small-Cap Index leading the way.

Not much news regarding trade or tariffs yesterday.

But there was plenty to talk about regarding the historic US/North Korea summit.

Sadly, the media coverage seemed to fall into their respective partisan camps. But there was no denying the meeting was historic. And I'd much rather see our leaders talking to one another rather than saber-rattling. I cheered the Reagan/Gorbachev summit. We, of course, now know that it led to the end of the Cold War. Only time will tell what comes out of the Trump/Kim Jong Un summit. But it was a good start.

But as I said before, the markets didn't move one way or the other leading up to the talks, and didn't seem to move either way after the talks. While we all hope for peace and a denuclearized North Korea, the odds are long that it will happen anytime soon, so there's no real peace dividend to build in yet. And if the talks do nothing, there's no real new downside threat to factor in either given the world's been living with a belligerent, nuclearized NK for years. So while the world remains fascinated and hopeful by the talks, there's been virtually no impact to the markets thus far.

Why did the markets go up yesterday? Why shouldn't they? The economy is firing on all cylinders, corporate profits are surging, and consumer confidence is at an 18-year high. The markets should be going up. And keep going up!

Last week I commented on how Warren Buffett and Jamie Dimon were extolling the virtues of the economy and the market. Well, we heard from another legendary investor – Paul Tudor Jones, echoing the same sentiment. Yesterday he said he thought the market would be "phenomenal" in the second half of the year with stocks moving "significantly" higher.

He also believes interest rates will move up as well and considers that a positive development.

That's good to hear because later today, the Fed is widely expected to raise interest rates by 25 basis points, bringing the Fed Funds range to 1.75%-2.00% (mid-point of 1.875%).

That will further show the Fed's confidence in the economy and the belief that it's strong enough to handle it.

As I've said before, I think the economy is in a sweet spot right now. That should continue for quite some time. And the market should be the big winner because of it.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


The only 30 stocks you need for 2018

I've discovered 30 stocks that have generated $300 million in windfall profits every day for the last 90 years. Every single day. Straight to the pockets of investors like you and me. I didn't believe it at first, but I did the math three times – and got my research team to check my numbers. And now a prestigious American business school has even released a study confirming it. Get the full story on the 30 stocks creating this $300 million daily windfall in this free video briefing.

Watch it here.

Most Popular Articles from

7 Low Price-to-Sales Stocks to Strengthen Your Portfolio

Price-to-sales is often preferred over price-to-earnings as sales are harder to manipulate and are relatively reliable. Read More »

Farewell to Net Neutrality: Winners and Losers

There is little doubt that the ISP industry will be the major beneficiary after United States officially dismantling Net Neutrality. Read More »

June Rate Hike Almost a Done Deal: Top 5 Winners

With the Fed set to raise rates, we expect financials, technology, home improvement suppliers and even gold to benefit. Read More »

Luxury Retailers are Outperforming in a Strong Economy

With Consumer Confidence at an 18-year high, Americans are spending a chunk of their discretionary income on luxury goods. Read More »

AT&T (T) Sinks, Time Warner (TWX) Gains as Federal Judge Approves Merger

A federal judge has approved AT&T's $85 billion merger with Time Warner, handing the telecom giant a massive victory in what has been the most intense antitrust case in decades. Read More »


Booster Shot for the Zacks Rank

Most investors base their trades on either fundamental OR technical analysis. Why not combine the best of both worlds?

That's how a recent Zacks' research development can improve our fundamental stock-rating tool that has averaged +25% per year. By adding pinpoint technical analysis for even more timeliness, accuracy, and profit potential, it closed gains over the past year of up to +57.4% in just 1-4 months.

It screens down the best 880 Zacks Rank stocks to a small selection poised to make big moves.

See Latest Stocks Now >>

Bull of the Day: Lululemon (LULU)

Shares of the athleisure giant have soared this past year, and future earnings growth is looking very bright. Read More »

New Zacks Strong Buys for June 13th

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:
Contact Info:

Phone: 1.800.767.3771 ext. 9339

Get it on Google Play Get it on Google Play