Back to top

View the PFP Archive

Plus 5 Just-Added Strong Buys
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks End Mixed, But Near Their Highs Of The Day

Stocks closed mixed yesterday with the Dow up modestly, while the S&P and Nasdaq were down modestly.

But all of the indexes closed near their highs of the day after erasing sharp losses from earlier in the morning.

Yesterday, before the open, AT&T reported a positive EPS surprise of 3.39% (they were up 6.58%); Abbott Labs reported a positive EPS surprise of 14.4% (they were down -1.36%); and CSX reported a positive EPS surprise of 4.26% (they were up 1.29%).

After the close, we heard from Tesla, which reported a record quarterly profit and posted a positive EPS surprise of 9.17%. That's a 59% growth rate from the same quarter a year ago. They were up roughly 2% in after-hours trade.

Today we'll hear from Intel, Visa, Mastercard, Archer Daniels Midland, and Comcast, to name a handful.

In other news, yesterday's MBA Mortgage Applications report was up 7.0% w/w, with purchases up 3.4% and refi's up 14.6%.

The Survey of Business Uncertainty showed businesses leaders expecting a 4.30% sales growth over the next 12 months vs. last month's pace of 4.45%. But expectations for employment growth ticked up to 4.34% vs. last month's 4.28%.

And the State Street Investor Confidence Index rose to 76.5 from last month's upwardly revised 76.0. Asia was up 5.7 points at 92.5. North America was up 0.7 points at 73.1. Europe fell by -0.3 points, but came in at a solid 102.2.

Today we'll get our first look at Q4's GDP. The consensus is calling for 2.7%. We'll also get Weekly Jobless Claims, Durable Goods Orders, the International Trade in Goods report, the Chicago Fed National Activity Index, Retail and Wholesale Inventories, the Kansas City Fed Manufacturing Index, and New Home Sales.

Should be a busy day.

But the report everybody is really waiting for is tomorrow's Personal Consumption Expenditures (PCE) report, which is the Fed's preferred inflation gauge. After better than expected inflation reports via the CPI and PPI reports over the last two weeks, investors are hoping to see the same easing of inflation with the PCE report.

That will be the last inflation report the Fed will see before they announce their rate hike next week on Wednesday, February 1.

The market is widely expecting a 25 basis point hike, which would put the midpoint for the Fed Funds rate at 4.63%. That would leave only 2 more hikes of 25 basis points to get to their projected terminal rate of roughly 5.10%.

But there's been plenty of speculation lately that the Fed might call it quits at 4.75 ? 5.00%. So traders will be listening for any clues as to whether the Fed expects to lower that target, maintain it, or raise it.

In the meantime, January is off to a great start.

Ever since the markets put in their key upside reversal on October 13 last year, stocks have been in an uptrend. They took a light detour at the end of December. But have resumed their uptrend since the beginning of the year.

Even though some are still speculating there could be a recession later in the year, others believe that we could indeed see a soft landing and avoid one altogether.

Either way, there's a growing belief that stocks may have already bottomed regardless.

And investors are wasting no time in getting back into the market.

To read more about this, be sure to check out our latest commentary...

Have Stocks Bottomed?


Kevin Matras

Executive Vice President, Zacks Investment Research


Notification of Release: 5 Stocks Set to Double

Five Zacks' experts have each revealed their single favorite stock with the best chance to gain +100% and more in the months ahead. Previous editions of this Special Report have racked up gains of +143.0%, +175.9%, +498.3%, and even +673.0%.

Today, you are invited to download the just-released report that names new stocks and spotlights why their gain potential is so exceptional.

See Stocks Now »

Most Popular Articles from

Image: Bigstock

Digging into the Early Q4 Earnings Season Scorecard

Looking at 2022 Q4 as a whole, aggregate S&P 500 earnings are currently expected to be down -7.2% on +3.9% higher revenues. Read More »

Image: Bigstock

Retail Stocks Surge to 52-Week Highs: Is It Time to Buy?

We expect this group to outperform over the next 3 to 6 months, just as it has over the past 3 months with a 21% return: Read More »

Image: Bigstock

The Coming AI Revolution: 5 Companies at the Forefront

Stocks Strategist Andrew Rocco breaks down five companies leveraging AI technology to grow their business. Read More »

Image: Bigstock

3 Stocks to Watch From the Satellite and Communication Industry

Companies within this industry are well-poised to benefit from a vast proliferation and cheaper access to space technology in the long run. Read More »

Image: Shutterstock

Looking to Invest Outside the United States?

The travel and tourism economy of this country is once again making it a hot investment. Read More »


Could This Be the Next Tesla?

Zacks Aggressive Growth expert Brian Bolan has pinpointed a tiny company from America's heartland that's gearing for a monster ride. It's ramping up production of an affordable, "working man's" rival to Tesla at exactly the right time.

Those who got in early on Tesla gained up to +26,600%. That type of gain may be difficult to reach, but Brian's under $5/share industry disrupter could easily ride soaring gas prices and desire for energy independence to triple and quadruple-digit gains. Experts predict the EV market to reach $1 trillion in 5 years. Don't wait to get aboard.

See This Stock Now »

Image: Shutterstock

Bull of the Day: Sumo Logic (SMO)

A trio of Private Equity concerns are eyeing a possible acquisition of this software company. Read More »

New Zacks Strong Buys for January 26th

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.