We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Profit from the Pros By Kevin Matras Executive Vice President
Rising Case Counts And New CA Restrictions Overshadow Vaccine Hopes
Image: Bigstock
Stocks closed mostly lower yesterday after reversing sharp intraday gains.
Earlier, the Nasdaq hit another new high, and the S&P briefly turned positive on the year.
Excitement over the fast-track designation of two experimental vaccines by Pfizer and BioNTech sent stocks soaring. It's generally believed that once a vaccine is approved and available, that will mark the day the world can truly begin to get back to normal.
But then news that CA has ordered all bars and indoor dining to reclose, due to the increase in COVID-19 cases, dragged stocks off their highs and into the red.
Of course, the concern now is, how long will this last? Will FL and TX be next? And what will this mean for the long-term reopening of our economy?
The market shrugged off the increase in cases for the last couple of weeks. But today's actions suggest traders will be paying more attention to these developments.
It will be an interesting next few weeks as the economic reports have been showing a strong recovery with huge pent-up demand being unleashed with the easing of the lockdown restrictions.
And while there are some high-profile hot spots, the aforementioned states being the biggest, there are plenty of cities and states doing quite well and moving along through their next phase of reopening.
We're also beginning earning season. Stocks typically go up during this time. While most everyone expects Q2 to show a deep contraction for GDP (before gaining roughly 20% in Q3), the better than expected economic numbers over the last couple of months suggest we could see plenty of better than expected earnings reports too.
Remember, not all companies suffered during the lockdown. And since the lockdown was shorter, and in some ways less severe than feared, there's ample opportunity for companies to report better than expected results.
In the meantime, as disappointing as yesterday's about-face in the market was, stocks have been on a tear. And with top analysts expecting unprecedented economic growth for the remainder of the year, it looks like stocks have a lot more upside to go.
So keep your eyes on the big picture.
And pay attention to earnings. While investor darlings like Netflix report this week (Thursday, 7/16 after the close), big banks and financial institutions will take center stage.
It's going to be an exciting next few weeks.
So be sure to use this time to your advantage.
And if the market pulls back a little more, it could be a great time to pick up your favorite stocks at a cheaper price.
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
Eric Fry, one of America's top Investment Strategists, provides his latest report 5 Tech Stocks Set for 1,000% Gains after the Coronavirus Sell off. You can't afford to miss out on the once in a decade chance to buy after the recent dip in the markets.
Starting now, you can get instant access to the latest picks from our hottest market-beating strategies. From 2017 through 2019 they gained +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
Zacks will also give you a free Special Report, Top 10 Stock Screening Strategies with formulas you can use to find high-potential gainers anytime you please.
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »
Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com.
Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.
Get all of our market insights and much more when you connect with us.
This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through June 1, 2020. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed above.
Zacks Emails If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately:
