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 Off To A Better Second Half Start Than Their First Half End

Stocks closed mixed but mostly higher on Tuesday after bouncing back from sharp intraday losses.

The Nasdaq led the way with a 1.75% gain after being down as much as -1.94% early on.

The S&P was next with a more modest gain of 0.16%. But they were down as much as -2.18% in the morning.

The Dow ended lower by -0.42%. But that was a big erasure of a large -2.39% deficit from earlier.

Both oil and natural gas plunged yesterday with crude down more than -8% and natural gas down by more than -3.5%. Just in the last 3 weeks alone, crude oil has fallen by more than -17.5% and is back under $100.

Energy prices are still elevated. But the pullback in energy, not to mention other commodities, bodes well for lower inflation readings to come.

And with that comes the potential for a lower interest rate target, and hope for a shallow recession (or avoiding one altogether).

There's still plenty of work to do on the inflation front. But falling energy prices is definitely a step in the right direction.

In other news, Factory Orders increased by 1.6% m/m, beating last month's 0.7% gain and the consensus for 0.5%.

Today we'll get MBA Mortgage Applications, the PMI Composite report, the ISM Services Index, and the Job Openings and Labor Turnover Survey report (or JOLTS for short).

We'll also get the FOMC Minutes from the Fed's June meeting. Traders will be looking for any clue as to what the Fed might do at their next meeting on July 26-27. As it stands now, the Fed is expected to raise rates by either 50 or 75 basis points.

The big report everyone is waiting for this week, however, is the Employment Situation report. The consensus is calling for 270,000 new jobs being created last month. If so, that would show the continuing strength of the labor market, and help allay fears of a hard recession.

But we've still got plenty of week and plenty of reports to get thru before then.

And we'll see if the lows from three weeks ago continue to hold. The longer they do, the better it is.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


Advance Notice to Zacks Members

Earnings Surprises
Imagine being able to KNOW which stocks will beat expectations this earnings season. You'd be able to buy early and take profits on the climbing prices.

Zacks' proprietary "ESP" formula has given members exactly that chance. Since 2014, it predicted positive earnings surprises with incredible 80.93% accuracy!

Now it's locked onto a handful of stocks set to stun Wall Street when their earnings reports are released. You can be among the first to get in on these picks BEFORE other investors rush in and drive up the prices.

Don't delay: Access is closing to new investors.

See Surprise Stocks Now >>

Most Popular Articles from

Image: Bigstock

A Proven Winner Through Multiple Wars, Recessions, and Bear Markets

This long-term stock market winner is hitting fresh all-time highs. Read More »

Image: Bigstock

4 Stocks to Buy as Back-to-School Season Holds Promise

Back-to-school sales, both in-store and online, are projected to grow 7.5% this year. Read More »

Image: Bigstock

Time to Buy Chinese Large Caps? Global Week Ahead

With officials pledging support for markets and the economy, and easing their tech sector crackdowns, investment banks are again rushing to slap Buy labels on Chinese shares. Read More »

Image: Bigstock

5 High Earnings Yield Picks for 2H to Beat the Market Blues

This ratio helps investors pick attractively valued stocks that are more likely to provide better returns. Read More »

Image: Bigstock

5 Solid ETF Strategies for Second Half

Given the current market environment, these investing ideas should prove extremely beneficial for investors. Read More »


What's Today's Top Rated Mutual Fund?

Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family.

Get started now>>

Image: Bigstock

Bull of the Day: Kroger Co. (KR)

Kroger has been on a blazing-hot earnings streak, exceeding bottom-line expectations in ten consecutive quarters. Read More »

New Zacks Strong Buys for July 6th

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.