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 Mostly Higher, Dow Makes New YTD High
Stocks closed mostly higher yesterday with the Dow leading the way. They were up 1.47% and made a new YTD high in the process.
Big moves from Salesforce (+9.36% yesterday), UnitedHealth Group (+3.36%), and Boeing (+3.21%) definitely helped.
The Dow is now up 8.46% for the year. Even though they made new highs for the year yesterday, the S&P is up 19.0% YTD, and the Nasdaq Composite is up 35.9%. (The Nasdaq 100 is actually up 45.8%.)
Yesterday's Personal Consumption Expenditures (PCE) index confirmed that inflation continues to decline. The headline number showed inflation was flat last month at 0.0% vs. last month's 0.4% and the consensus for 0.0%, while the y/y rate came in at 3.0%, down from last month's 3.4% and below views for 3.1%. The core rate (ex-food & energy) was up 0.2% m/m vs. last month's 0.3% and estimates for 0.2%. The y/y rate came in at 3.5%, down from last month?s 3.7%, and in line with the consensus.
It was a fine report. And echoed what the CPI and PPI reports showed two weeks ago – that inflation continues to ease.
And it further underscored the idea that the Fed is likely to pause at their next announcement on rates on 12/13 (and possibly call it quits afterwards)?
What investors are really interested to learn is when the Fed expects to pivot to cutting rates next year, and by how much.
At the moment, we know the Fed has previously said they expect to cut rates by -50 basis points in 2024. But more and more Fed watchers are expecting 5 quarter point rate cuts next year (with some calling for even more -- UBS is expecting a -275 basis point cut).
Before that though, we'll get the Employment Situation report next Friday on 12/8. The Fed has been looking at that as a proxy for the economy, and average hourly earnings as a barometer of inflation (wage inflation).
Employment has been resilient, but is finally easing (which suggests the Fed's rate hike cycle is having an impact). And wage growth has moderated as well (which shows yet another component of inflation is easing). All good signs.
In other news, yesterday's Weekly Jobless Claims rose by 7,000 to 218K vs. views for 219K.
The Pending Home Sales Index slipped -1.5% m/m vs. last month's 1.0% and the consensus for -2.0%. The index itself came in at 71.4 vs. last month's 72.5.
And the Chicago PMI rose to 55.8 vs. last month's 44.0 and estimates for 45.1.
Today we'll get the PMI Manufacturing Index, the ISM Manufacturing Index, and Construction Spending.
We'll also hear from Fed Chair, Jerome Powell, as he participates in a discussion at Spelman College, in Atlanta, GA in the morning. And then again at a roundtable discussion, along with Fed Governor, Lisa Cook, in the afternoon.
No new ground is expected to be broken at today's events. But you can be sure his comments will be closely followed regardless.
The Q4 rally is firing on all cylinders.
And with one more month to go, expectations are high that we'll finish the year strongly.
Executive Vice President, Zacks Investment Research
From 4,400 stocks, the Zacks system distills only 220 Strong Buys. This list beats the S&P 500 more than 2X over.
Our experts just combed through the Strong Buys to hand-pick 7 compelling companies most likely to jump the soonest. Previous 7 Best reports have caught quick and substantial gains like +47.4% on WING... +44.0% on SLB... and +67.5% on GDYN... all within one month.
Report distribution is limited, so don't miss out. Deadline is Sunday, December 3.
Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family.
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 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: