Back to top

View the PFP Archive

Plus 5 New Strong Buys for Today
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Down Again, But Strong Earnings After The Close Could Lift Stocks

Stocks were down again yesterday after giving up earlier gains for the second day in a row.

Absent a rally today, stocks are on pace to close lower for the week. That would make it 4 weeks in a row for the Dow, S&P and Nasdaq.

But strong earnings from Apple after the close yesterday should give a boost to the markets today. They reported an 11.1% positive EPS surprise and a 4.42% positive sales surprise. Apple was up more than 4% in after-hours trade.

Position squaring after Wednesday's FOMC Announcement and Fed Chair Press Conference continued.

Aside from Mr. Powell's slightly more hawkish language (we need to move to a "substantially less accommodative policy"), and his admission that inflation had risen faster than they had thought, the Fed's announcement came in as expected. They reduced their bond buying yet again, with expectations to end their purchases in March. They left interest rates unchanged. They hinted that rates could rise as early as March. And that balance sheet runoff would likely begin once they hike rates, but acknowledged that could take some time.

All in all, they delivered what they had been telegraphing for months.

Stocks were already in pullback/correction mode weeks before the FOMC Announcement. But the confirmation of tighter monetary policy served to help things along.

Nonetheless, the pullback should be short-lived. For one, pullbacks and corrections are common. And two, the economy is poised for another year of solid growth, which suggests another year of solid market gains.

In fact, Q4 GDP was released yesterday and it came in well above expectations at 6.9% vs. expectations for 5.7%.

And with 2022 projected at 4.0%, it looks like we've got lots of growth ahead.

In other news, Weekly Jobless Claims fell by -30,000 to 260K vs. views for 265K. (The 4-week moving average came in at 247K.)

Durable Goods Orders slipped by -0.9% m/m vs. the consensus for -0.5%. But the prior month's tally was upwardly revised from 2.5% to 3.2%. Ex-Transportation, it came in at 0.4% as expected, with the prior month revised higher from a 0.8% gain to a 1.1% gain. And Core Capital Goods came in flat vs. views for 0.4%. But their prior month was revised higher as well from -0.1% to 0.3%.

Today we'll get the Personal Income and Outlays report, the Employment Cost Index, and Consumer Sentiment.

And, of course, earnings season continues with another 34 companies set to report today. (Next week sees another 664 on deck. And then another 905 the week after that.)

As I said yesterday, you can expect more volatility. But it looks like there's a lot more upside to go.

So I'd be looking for opportunities to buy.


Kevin Matras

Executive Vice President, Zacks Investment Research


5 Stocks Set to Double: Sunday Deadline

There's still time to get in on our just-released 5 Stocks Set to Double Special Report. Each pick is the single favorite of a Zacks expert with the best chance to gain +100% and more in the months ahead:

Stock #1: Social Media Platform Revs Up for Next Big Burst

Stock #2: Surging Chemical Company Still "Off the Radar"

Stock #3: Small-Cap with Huge Advantage for Chipmaking

Stock #4: Few Would Guess This Stock Will Double

Stock #5: Over 19,000 Patents and $30 Billion in Revenue

Previous editions have racked up gains of +143.0%, +175.9%, +498.3%, and even +673%. Deadline to download the new report is midnight Sunday, January 30th.

See Stocks Now >>

Most Popular Articles from

Image: Bigstock

3 Best Stocks to Buy for Solid Earnings Acceleration

Earnings acceleration helps spot stocks that haven't caught investor attention yet. Read More »

Image: Bigstock

Industry Group Analysis: How to Find 2022's Winners

Your most profitable stocks will be those with upward earnings estimate revisions in the industries enjoying the same. Read More »

Image: Bigstock

Apple's Q1 Surprises to the Upside, Visa Also Beats

Once again outperforming expectations on both top and bottom lines, Apple reported positive fiscal Q1 earnings after Thursday's close. Read More »

Image: Bigstock

4 Stocks to Watch in a Prospering Gas Distribution Industry

The gradual improvement in production and demand for natural gas will drive the performance of these stocks. Read More »

Image: Bigstock

After the Sell-Off, are Growth Stocks now Values?

Growth stocks are cheaper than they've been at any time since the coronavirus sell-off in 2020. Is it time to buy? Read More »


Your Exclusive Access to Today's Top ETFs

Use Zacks ETF Rank to help you select the very best ETFs for your portfolio. This quantitative ratings system takes into account asset class forecasts as well as several ETF-specific factors. All to give you a comprehensive account of a fund's potential before you invest your money.

See Today's Top-Ranked ETFs >>

Image: Bigstock

Bull of the Day: Potlach (PCH)

Big inflation numbers translate to big earnings for this stock. Read More »

New Zacks Strong Buys for January 28th

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

Download our Zacks App for Apple iOS
Download our Zacks App for Android

Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.