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 Closed Higher Yesterday Ahead Of Wednesday Afternoon?s FOMC Announcement

Stocks closed higher yesterday as we approach Wednesday afternoon's FOMC announcement on rates.

The market breathed a sigh of relief on the news that UBS would buy Credit Suisse. But given the terms of the purchase, CS shareholders saw their stock drop another -53%, and AT1 bondholders took a -100% haircut. But the purchase did stem some of the risk of contagion, and for that, there was relief.

But many of the troubled names did not see their fortunes reverse. First Republic Bank, for example, even after getting $30 billion in liquidity from 11 of the largest U.S. banks last week, saw their shares drop another -47% yesterday. S&P Global Rating's downgrade of FRC's debt rating to B+ (the second downgrade by S&P in the last week, dropping seven notches in total), didn't help. Moody's also lowered their credit rating to B2 from Baa1 last Friday. Nevertheless, Jamie Dimon is leading the effort to raise more capital for FRC.

In spite of last week's volatility, which was brought on by the banking scare, the market did have something to cheer about last week. And that was the better than expected inflation readings from both the CPI and PPI reports.

And that's led many to speculate that the Fed will still raise rates by 25 basis points on Wednesday, but could signal a pause afterwards, or at least lower their forecast for their terminal rate projections.

The first day of the 2-day FOMC meeting begins today, and ends on Wednesday, with the Fed announcing their change (if any) to interest rates at 2:00 PM ET, followed by Fed Chair, Jerome Powell's Press Conference at 2:30.

In the meantime, you can be sure there'll be plenty of position squaring ahead of Wednesday afternoon's Fed events.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


See Zacks' Top Stocks for Free

Starting today, you can get instant access to the latest picks from our time-proven strategies which since 2000 have soared far above the market. While the S&P 500 averaged +6.2% per year, our top strategies averaged gains as high as +46.4%, +49.5% and +55.2% per year.

You'll also get our free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies.

See Stocks Free »

Most Popular Articles from

Image: Bigstock

Gold is Pushing $2000: 2 Stocks to Trade the Breakout

High inflation, a banking crisis, rising interest rates, and geopolitical tensions; it?s no wonder gold is finding a bid. Read More »

Image: Bigstock

This Popular Website Builder and E-Commerce Provider Is Soaring

SQSP has delivered a trailing four-quarter average earnings surprise of 105.55%. Read More »

Image: Bigstock

Will Bad News Turn Good for Investors in Fed's March FOMC?

Economists and financial experts now expect the central bank to refrain from hiking rates in the March FOMC. Read More »

Image: Bigstock

Central Banks Offer Crisis-Era Action: Global Week Ahead

U.S. regional bank turbulence has left deep scars on the world's financial markets -- with the risk of more to come. Read More »

Image: Bigstock

4 Top-Performing ETF Areas of Last Week

Despite concerns regarding the ongoing banking crisis, these ETF areas were outperforming. 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: Bigstock

Bull of the Day: Sea Limited (SE)

Earnings momentum has brought back the bulls to this former high flyer. Read More »

New Zacks Strong Buys for March 21st

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.