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 Higher For 3rd Week In A Row As Q4 Rally Continues
Stocks closed higher on Friday, and sharply higher for the week, making it 3 up weeks in a row.
For the Dow, it was the best 3-week period since late 2022. For the S&P and Nasdaq, you have to go all the way back to mid-2020.
Last week's better than expected Consumer Price Index (CPI), and Producer Price Index (PPI) confirm that inflation is on the decline. The core (ex-food & energy) CPI (retail inflation) is currently at 4.0% y/y. That's down from last year's summer high of 6.6%. And the core PPI (wholesale inflation) is at 2.4% y/y, also down from last year's summer peak of 8.2%.
Next week (11/30), we'll get the Personal Consumption Expenditures (PCE) index (the Fed's preferred inflation gauge). The last report showed inflation at 3.7% y/y, down from last year's peak of 5.3%.
That'll be the last inflation report before the next FOMC meeting on 12/13.
But the writing is likely already on the wall for what the Fed will do.
With inflation on the decline, the Fed has confirmed they are nearing the end of their rate hike cycle (if they haven't already hit it). After pausing on rates for two meetings in a row, there's a growing likelihood that they may pause yet again when they meet in 3½ weeks, and possibly call it quits.
Then after UBS came out last week suggesting the Fed could cut rates by as much as -2.75% next year (bringing the Fed Funds rate down to a midpoint of 2.63%), more and more people are expecting a bigger Fed pivot than they themselves are currently projecting, and sooner too.
We shall see. But the mere fact that we are nearing the end of the rate hike cycle is bullish enough.
In other news, Friday's Housing Starts and Permits report ticked up to 1.372 million units (annualized) vs. last month?s 1.346M and the consensus for 1.350M. Permits rose as well to 1.487M vs. last month's 1.471M and views for 1.463M.
And E-Commerce Retail Sales were up 2.3% q/q vs. last period's upwardly revised 2.2%.
We've got a shortened trading week this week with the market closed on Thursday, 11/23, for Thanksgiving Day. And the market closes early on Friday, 11/24, for Black Friday.
In the meantime, after a slow start to Q4, the markets have been on a tear. And the long-awaited Q4 rally has so far proven to be worth the wait.
We still have 6 more trading weeks to go before 2023 comes to a close. Could it be as spectacular as the last 3 weeks? Who knows. But the seasonal trends and statistics are all suggesting we could see a strong finish.
So make sure you're taking full advantage of it.
See you tomorrow,
Executive Vice President, Zacks Investment Research
Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance.
Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List. 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 October 2, 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: