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 Sharply Higher To Start The Week
Stocks closed sharply higher yesterday with the Dow, S&P and Nasdaq all up by more than 1.50%.
Stocks picked up where they left off on Friday after their spectacular turnaround. And they pulled away from last week's lows even more yesterday.
The same headwinds as before persist. Inflation, and what that means for interest rates, and the war on Ukraine, which is exacerbating high energy prices, continues to worry investors. So much so that some are expecting a recession, hence the protracted sell-off over the last few months.
But as I've mentioned before, the Fed taking action on interest rates is bullish since inflation is the biggest threat to the economy right now. And the sooner the Fed can tamp down inflation, the better.
Fed Chair, Jerome Powell, even went on record saying that because the economy is so strong, he believes it will "flourish in the face of less accommodative monetary policy."
As for recession, St. Louis Fed President, James Bullard, last Friday, said that 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."
Now add that to falling stock prices and rising earnings estimates, and you have valuations at the lowest level in more than 2 years.
And after being so grossly oversold (the Dow just notched its 8th weekly loss in a row ? their longest losing streak in 90 years, while the S&P and Nasdaq recorded their 7th weekly loss in a row ? their longest losing streak in 21 years), the market is ripe for a significant bounce.
And when it looks like the worst case scenario will not come true (no recession after all), stocks could soar!
In the meantime, yesterday's up move was long overdue.
And given how lopsided (to the downside) this year has been, in spite of how strong the economy is, the market feels like its long overdue for several weeks worth of upside, just for starters.
See you tomorrow,
Executive Vice President, Zacks Investment Research
Most people are terrible at buying and selling stocks at the right time. But, the TradeSmith app takes the emotion out of investing. It's quant software alerts you to the mathematically correct time to buy and sell for maximum profits. Our back test shows, the average investor would've made $97,347 more just by using the TradeSmith app. Within minutes of downloading the app, you can run your investments through our analyzer software.
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: