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 For The Week, But Make Dramatic Rebounds On Friday
Stocks closed mixed on Friday with the Dow and the S&P in the green, while the Nasdaq was in the red.
The S&P briefly fell into bear market territory, intraday, on Friday (down -2.32% at one point, for a correction low of -20.56%), before erasing those losses by the close and finishing up on the day.
For the last 2 weeks, all we heard was how the S&P was on the brink of a bear market. Well on Friday, traders finally pushed the index below the -20% threshold. And once they did, it was essentially crickets. There was no panic. No pandemonium. No further plunge to the downside. There was a modicum of additional selling. But that's about it. And with virtually nobody left to sell, the buyers swooped in and bought.
As I watched it fall below the -20% mark, and then saw the selling just kind of dry up, I remember saying out loud, "is that it?" And sure enough, it was.
By the end of the day, it was clear there were no more sellers to press it, and the rebound gained momentum before finally getting into the plus column within the last few minutes of the day.
Have to say, it was pretty exciting.
Don't get me wrong, the markets have plenty of work to do. The Dow and the S&P are still in correction territory with declines of -15.05% and -18.66% respectively. And the Nasdaq is still in bear market territory with a loss of -29.29%.
Moreover, the Dow notched its 8th weekly loss in a row (longest losing streak in 90 years), while the S&P and Nasdaq recorded their 7th weekly loss in a row (longest losing streak in 21 years).
But if the markets looked oversold before, they look even more oversold now.
And with the sell-off pushing valuations to their lowest level in more than 2 years (April 2020), many stocks are looking like downright bargains.
Let's also not forget, the economy is still growing. That point was reiterated on Friday by St. Louis Fed President, James Bullard, when he said he does not see a recession this year or next, and sees the economy growing by 2.5% to 3% this year.
He qualified his statement saying that could change if there was a "really large shock" to the economy. But outside of that, he sees a "pretty good second half," driven by "strong consumption this year."
So, maybe, maybe, maybe, we finally saw the bottom. (Or not.)
Either way, the market is long overdue for some up days and weeks.
And today would be a great day to get that party started.
See you tomorrow,
Executive Vice President, Zacks Investment Research
Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge.
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 email@example.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately: