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As Economy Heats Up, Stocks Poised For Record Gains
The markets were mostly lower yesterday, but the Russell 2000 Small-Cap Index stood out with a 0.56% gain.
Even though the market is focused on earnings season, stocks just seemed adrift yesterday.
But the major indexes still look great, and the Russell is less than 0.40% away from making another new all-time high.
In other news, yesterday's Jobless Claims came in better than expected with an -8,000 drop in new claims to 207,000. This is the lowest level since December 1969.
The Philadelphia Fed Business Outlook Survey came in at 25.7 vs. last month's 19.9 and views for 22.0. Analysts noted that input costs saw the "sharpest rise" since July 2008. Much of it was attributed to the latest tariffs. But it was also noted that a fair portion is being passed through to customers and is the reason why selling prices are "among the highest on record". Nonetheless, "orders just keep pouring in".
And the Leading Indicators report was up 0.5% vs. last month's 0.2% and views for 0.4%. The report was characterized as showing "broad strength". Once again, new orders were singled out as one of the key highlights of the report as it "points to steady economic growth ahead".
The economy and the market look to be in a good place.
Expectations for a strong second half are looking better and better every day.
And Q2's earnings season should give it a great head start.
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
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The markets were mostly lower yesterday, but the Russell 2000 Small-Cap Index stood out with a 0.56% gain.
