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 indiv idual 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 Down, S&P On Pace For 7th Weekly Loss In A Row
Stocks closed lower yesterday after flitting between positive and negative territory throughout the day.
The Dow actually made new intraday correction lows, and spent most of the day in the red. The S&P held their lows from last Thursday, but they did make a new correction low close. The Nasdaq spent most of their time in the plus column yesterday, but still finished in the red. But they too held their correction lows from last week.
From their all-time high close to yesterday's close the Dow is down -15.1%, the S&P -18.7%, and the Nasdaq by -29.1%.
The word 'recession' continues to be thrown around with some saying we may already be in one.
While GDP was down -1.4% in Q1, the Federal Reserve Bank of Atlanta's GDP Now forecast puts Q2 GDP at 2.4%.
Of course, a lot can change by the end of Q2, given that we aren't even done with May yet, and then we've got another whole month of June left. But at the moment, the recession definition of two quarters in a row of negative GDP does not appear to be in the cards just yet.
Moreover, the S&P was down by nearly -20% at its worst (as of last Thursday). By comparison, during the flash crash of 2020, at the beginning of the pandemic when everybody thought the world was coming to an end, the S&P plunged -33.9%. And due to the economic lockdown, we actually saw a real recession of 2 quarters in a row of negative GDP with Q1 down by -5.1% and Q2 down by -31.2%.
I don't think we are anywhere near anything like that.
And for further perspective, last quarter's Q1 contraction actually showed lots of positives in the economy with consumer spending up, business investment up, residential investment up, and final sales to private domestic purchasers up. (What tanked Q1 GDP numbers was lower government spending, lower exports, and lower inventories, as businesses built up supplies very slowly, in spite of surging demand.)
Nonetheless, the market is clearly uneasy right now with the current state of inflation, and how high interest rates may have to go to knock it down.
The market has not yet priced in the worst case scenario. But the S&P's testing of the -20% level and bear market territory shows plenty of traders are expecting that. Then again, that level continues to be defended, so there appears to be more people out there not ready to go there just yet.
But each day the market is making a decision. We will see what it decides today.
Either way, whether the lows are already in, or whether they have yet to be seen, there's plenty of positives in the economy right now.
And with the sell-off already pushing valuations to the lowest level in more than 2 years (April 2020), each tick lower only makes stocks look like even bigger bargains.
But let's see if the market can hold their lows again today.
Executive Vice President, Zacks Investment Research
The Executive Vice President of Zacks Investment Research, Kevin Matras, is very optimistic about our country's financial future. As the economy continues to grow stronger, he expects stocks to soar far higher right through the market blips and dips.
But what's the key to being successful? Knowing the right strategies and where to find stocks that will lead the market.
For a limited time, Kevin is offering his hardcover book, Finding #1 Stocks, absolutely free. In the book, he shares exclusive secrets to picking stocks, including the exact formulas of strategies that produced gains of +48.2%, +67.6%, and even +95.3% in 2021.
This brief opportunity will end at midnight Saturday, May 21 or when inventory is depleted. Don't miss your chance to get an edge in the game.
Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance.
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 April 4, 2022. 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 firstname.lastname@example.org.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately: