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
Stocks Close Higher On Blowout GDP Report
Image: Bigstock
Stocks closed up yesterday. Off their highs of the day, but a solid gain nonetheless.
However, all of the major indexes are on pace for another lower weekly close.
As mentioned yesterday, with Europe grappling with an increase in virus cases and talk of more shutdowns, that fear has spooked U.S. investors given the rise in cases here in the states as another shutdown would hamper growth.
Fortunately, our economy has been on a strong path of recovery. In fact, it's been the fastest economic rebound in history. And because our economy was so strong going into the pandemic, it's allowed us to strongly bounce back.
That economic strength was on full display yesterday morning when Q3 GDP came in at a whopping 33.1%, beating the estimates for 30.9%. This was the largest growth rate ever recorded.
And with expectations for more growth in Q4 (especially if Congress can pass another stimulus bill after the election), not to mention expectations for all of 2021 to grow at the fastest pace in 38 years, it looks like there's a lot more upside to go for both the economy and stocks.
More good news was seen with yesterday's Weekly Jobless Claims falling more than expected (down -40,000) to come in at 751K vs. views for 758K.
Election uncertainty will persist at least thru a portion of next week, or longer if it's close, given the additional time to count mail-in ballots.
But I'm reminded of what Goldman Sachs' Michael Cahill and Alec Phillips wrote in a note last month; "it seems fairly likely that there should be enough information on election night from states that will report results quickly for the market to be able to gauge the likely winner." "In other words, the S&P can trade the likely outcome, even if the AP does not call the race."
We shall see.
In the meantime, we'll get more earnings rolling in today, and another 1,877 next week.
And we'll get another look at the economy with the Personal Income and Outlays report, the Chicago Purchasing Managers Index, and Consumer Sentiment.
As the economy continues to improve, that should be good news for stocks.
Best,
Kevin Matras
Executive Vice President, Zacks Investment Research
Scientists have stumbled on a technology that could drive every marijuana "grow op" into bankruptcy. Early investors have a shot at returns up to 6,077% on the biotech that's become Wall Street's "best-kept secret." A Senate vote within weeks could change the marijuana industry forever.
Scientists have stumbled on a technology that could drive every marijuana "grow op" into bankruptcy. Early investors have a shot at returns up to 6,077% on the biotech that's become Wall Street's "best-kept secret." A Senate vote within weeks could change the marijuana industry forever.
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 August 31, 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:
