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 Closed Lower As Bond Yields Rise
Stocks closed lower yesterday with all of the major indexes down by more than -1.20%, with the Nasdaq down by -1.87%.
Rising Treasury yields (the 10-year is now at a 16 year high), underscores the narrative of higher for longer. And that's weighing on stocks.
Not too long ago, yields were heading back down on the idea that the Fed would be cutting rates by 100 basis points next year, with some thinking it would begin sooner rather than later.
But after the last Fed meeting, they commented that they could still see one more rate hike by year's end, and that next year could see them cut rates by just 50 basis points rather than the 100 that had been expected.
In other news, yesterday's Job Openings and Labor Turnover Survey report (or JOLTS for short) came in hotter than expected at 9.61M job openings vs. last month's upwardly revised 8.92M and views for 8.75M. This was a case of good news being bad. A hot labor market suggests higher rates might indeed be needed.
Although, the job report everybody is really waiting for is Friday's Employment Situation report.
Last month's report showed more jobs were created than expected, but that job growth cooled from its record setting pace, while hourly wage growth rose less than expected.
Robust job growth is wanted, but not rip-roaring job growth as that signals the increase in interest rates is not having as much of an effect at slowing the economy down (and thus inflation) as expected. So a solid number should be cheered on Friday, but not a blowout one.
But before that comes, we've got a full docket of reports to get thru today including MBA Mortgage Applications, the PMI Composite report, the ADP Employment Report, Factory Orders, and the ISM Services Index.
The markets were also transfixed on the House vote to remove the Speaker. And after the close, they did. Politics aside, it throws into question who will lead the House if they do? And what happens after the short-term funding bill expires on November 17. Every day is needed to get the budget figured out to avoid a government shutdown. And this only injects further uncertainty into the process and the markets.
Rough start to the new quarter so far.
The statistical odds still favor a strong Q4 rally.
But the current pullback has some wondering if it will come at all.
I'm in the rally camp. But the market is going to have to put in a bottom first.
We've chosen a small-cap primed for extreme growth that could rival or surpass our +850% gain in the giant NVIDIA over the past 3½ years.
Today you can get aboard this under-the-radar company for under $10. But the window of opportunity could be brief as the company gains more traction. Flush with patents, it's poised for a huge year with strong earnings growth and an expanding customer base. Download our Special Report for only $1 One Semiconductor Stock Stands to Gain the Most. Hurry, the deadline is midnight Sunday, October 8.
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 September 4, 2023. 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 email@example.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606
Due to inactivity, you will be signed out in approximately: