We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 individual 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 End Mixed, Treasury Yields Soar
Image: Bigstock
Stocks ended mixed yesterday with the Dow and the S&P finishing modestly lower, while the Nasdaq and Russell 2000 finished modestly higher.
The 2-Year Treasury yield hit a 15-year high at 4.29%, while the 10-Year yield hit 3.95%, also a 15-year high.
With the Fed last week saying they expect the Fed Funds rate to hit 4.4% by year's end, the treasuries have wasted no time in pricing in those expectations.
With the Fed Funds midpoint currently at 3.13%, the Fed will need to raise rates by another 125 basis points over the next two Fed meetings in November and December. And with the terminal rate of 4.6% expected to be reached by early next year, that will require an additional 25 bps, maybe as early as the February meeting.
But the Fed did say they will continue to look at the data and take each meeting as it comes.
In the meantime, we'll get another look at inflation with the CPI (Consumer Price Index) and PPI (Producer Price Index) reports in October. While both remain near 40-year highs, they have ticked down from their summer peak.
In other news, the Case-Shiller Home Price Index dipped -0.8% m/m, but was still up a robust 16.1% y/y.
New Home Sales surged in August to 685,000 units (annualized) vs. July's upwardly revised 532K and views for 498K.
Durable Goods Orders slipped -0.2% m/m, but ex-Transportation it was up 0.2%. And Core Capital Goods were up 1.3%.
The Richmond Fed Manufacturing Index was flat vs. last month's print of -8 and estimates for -4.
And Consumer Confidence shot up to 108.0 vs. last month's 103.6 and the consensus for 104.3.
Today we'll get MBA Mortgage Applications, the Pending Home Sales Index, Retail and Wholesale Inventories, the International Trade in Goods report, the Survey of Business Uncertainty, and the State Street Investor Confidence Index.
The market appears oversold. And is ripe for a rebound.
The S&P attempted one on Monday and then again on Tuesday, but could not make it stick.
One of these days it will. Traders are on the lookout for it. And you should be too.
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
Louis Navellier, an analyst who helped people navigate the dot-com collapse, has found 11 stocks that could help you prosper during these challenging financial times.
Four Zacks experts each announce their single favorite stock to gain the most in the next three months:
Stock #1: Little-known but highly influential tech stock with clients like Apple and Nvidia.
Stock #2: Cutting-edge streaming company ready to break out. EPS estimates are up 25% in 30 days.
Stock #3: An under-the-radar alternative energy company with estimates for 70% in topline growth.
Stock #4: Chemical company poised to become the dominant supplier of materials for EV batteries.
Today, you are invited to download the private Ultimate Four Special Report that names these stocks and spotlights why their gain potential is so exceptional.
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 August 1, 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 support@zacks.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately:
