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 Soar As The Market Builds On Last Week's Rally From The Lows

Stocks soared yesterday with all of the major indexes closing sharply higher. The Dow was up 1.34%, the S&P was up 2.02%, the Nasdaq was up 2.76%, and the small-cap Russell 2000 was up 3.19%.

The S&P is now up 5.96% since last Thursday's correction low.

After coming as close as you could last week to -20% (bear market territory), the S&P is now down 'just' -14.75% from their all-time high close.

And all of the indexes are now up for the week. Granted, we still have three more trading days to go this week. But after 13 down weeks this year vs. only 6 up weeks, seeing the market get a big jump on things so early is great to see.

In other news, Retail Sales were up 0.9% m/m, beating the consensus for 0.8%. Ex-vehicles it was up 0.6% m/m vs. views for 0.4%. And ex-vehicles & gas it was up 1.0% vs. estimates for 0.6%.

Industrial Production rose 1.1% m/m vs. the consensus for 0.4%, with Manufacturing Output up 0.8% vs. the consensus for 0.3%, and the Capacity Utilization Rate at 79.0% vs. last month's 78.2% and views for 78.5%.

And Business Inventories rose 2.0% vs. the consensus for 1.8%.

Jerome Powell spoke at the Future of Everything Festival in NY yesterday, and said the Fed was committed to raising rates until inflation goes down.

That was interpreted bullishly since inflation is the biggest risk to the economy and the market right now. And at the moment, that still appears to mean a Fed Funds rate of 2.8% by the end of 2023. Big enough to tamp down inflation, but not so big as to stifle the economy.

Fortunately, the underlying fundamentals of the economy are strong, and should provide enough of a cushion to accommodate tighter monetary policy. In fact, because the economy is so strong, he believes it will "flourish in the face of less accommodative monetary policy."

That's what the market is hoping for as well. And based on the last few days, it looks like it's starting to believe it.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


The $193 Billion US-China War You Don't Know About


They're fighting for control of lithium – a key ingredient in EVs and clean energy technology. It's arguably the most important commodity of the 21st century. China owns 80% of global supply. But the US plans to grab a massive slice of the lithium market, which is forecasted to quadruple to $193 billion by 2028, according to Fortune Business Insights.

See How the US-China "Lithium War" Is Creating Huge Investment Opportunities

Most Popular Articles from

Image: Bigstock

Solid Cash-Flow Growth Makes These 4 Stocks Worth Buying Now

A company's resiliency can be fairly judged by its efficacy in generating cash flows. Read More »

Image: Bigstock

Can Videogame Sales Bounce Back to COVID-19 Highs?

While new games are being launched, sales have somewhat slowed this year. Read More »

Image: Bigstock

3 Best Stocks to Invest in for Superb Earnings Acceleration

An increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period. Read More »

Image: Bigstock

5 Dividend ETFs Crushing the Market This Year

Dividend investing has been in vogue amid bouts of volatility and uncertainty over sky-high inflation. Read More »

Image: Bigstock

3 ETFs to Fight Surging Food Inflation

Inflation is now running at its 40-year high, and the food index is one of the three biggest contributors lately. Read More »


Get Your Free Copy of Finding #1 Stocks - A $49.95 Value

Starting today, you can claim a free copy of Finding #1 Stocks by Zacks' EVP Kevin Matras. You don't even have to pay for shipping! Its 300 pages unfold virtually every trading secret he has learned over the last 25 years to beat the market. Here's what's inside:

  • Exact formulas of strategies that produced gains up to +48.2%, +67.6%, and even +95.3% in 2021…
  • How to spot bullish set-ups and bearish break-downs to stay ahead of the market…
  • Traits to determine the type of trader you are and finding stocks with highest probability of success…
  • Kevin's personal all-time favorite screening strategy…
  • And much more!

This limited-time offer will end Saturday, May 21 or when our inventory is depleted. Don't miss this unique opportunity.

Get your FREE book now  >>

Image: Bigstock

Bull of the Day: Dillard's, Inc. (DDS)

The stock has surged more than 1,400% since the March 2020 market bottom. Read More »

Image: Bigstock

New Zacks Strong Buys for May 18th

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.