Stocks End Lower, But Poised To Close Up For The Week, All Eyes On This Morning's PCE Inflation Report

Market Moves You Need to See Stocks End Lower, But Poised To Close Up For The Week, All Eyes On This Morning's PCE Inflation Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, But Poised To Close Up For The Week, All Eyes On This Morning's PCE Inflation Report Stocks closed lower yesterday, but well off their worst levels of the day, to end near their best levels of the day. Once again, strong beats by many companies in the morning, such as Merck (positive EPS surprise of 6.70%), Northrop Grumman (positive EPS surprise 8.40%), and Union Pacific (positive EPS surprise of 7.60%), lifted those names, but not the market. However, after the close, Microsoft posted a positive EPS surprise of 4.63%, and a positive sales surprise of 2.02%, which translated to a quarterly EPS growth rate of 20.0% vs. this time last year, and a sales growth of 17.0%. They were up by more than 4.50% in after-hours trade. Another mega-cap, Alphabet, reported after the close as well and posted a positive EPS surprise of 26.9%, and a positive sales surprise of 2.35%. That equated to a quarterly EPS growth rate of 61.5% vs. this time last year, and a sales growth of 15.4%. They were up more 12% in after-hours trade. There were many more after-hour beats. And the S&P and Nasdaq futures were up solidly because of it. Today we'll get 114 more companies set to report, including AbbVie, Exxon Mobile, and HCA Healthcare, to name a few. Next week we'll get 1,225 companies on deck to report. In other news, yesterday's first estimate of Q1'24 GDP came in at 1.6% vs. last quarter's 3.4% and views for 2.3%. The International Trade in Goods report saw the trade balance (deficit) expand to -$91.8 billion vs. last month's $90.3B and the consensus for -$91.0B. Imports fell by -1.7% m/m vs. last month's 2.9%. Exports fell by -3.5% m/m vs. last month's 2.9%. Weekly Jobless Claims fell by -5,000 to 207,000 vs. last month's 212K and views for 215K. The 4-week moving average came in a little higher at 213.25K. Retail Inventories slipped to 0.3% m/m vs. last month's 0.5% pace. Wholesale Inventories fell -0.4% m/m vs. last month's 0.4% and estimates for 0.3%. The Pending Home Sales Index rose 3.4% m/m vs. last month's 1.6% and the consensus for 1.0%. The index itself came in at 78.2 vs. last month's 75.6. And the Kansas City Fed Manufacturing Index notched lower to -8 vs. last month's -7. Today we'll get Consumer Sentiment, and the report everybody has been waiting for, which is the Personal Consumption Expenditures (PCE) index. The is the Fed's preferred inflation gauge. And we'll see if inflation ticked up or down in the latest reporting month. The consensus is calling for the headline number to be up 0.3% m/m, with the annual rate at 2.6%. The core rate (ex-food & energy) is expected to come in at 0.3% m/m as well, while the annual rate comes in at 2.7%. Next week on Wednesday, 5/1, we'll get the next Fed announcement. The odds are virtually zero that there'll be a rate cut next week. (Odds favor September.) But the report is important nonetheless because the Fed maintains it will be data dependent, and that means it could have an influence in either shortening or elongating the Fed's timeline of when the first rate cuts will begin. The PCE report comes out this morning at 8:30 AM ET. The major indexes are all up for the week, so far, with just one more day to go. And it won't take much to keep it that way. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Ultimate Access Is Only $1]( Starting today, for one month, you are invited to see the real-time buys and sells from all our private portfolios for only $1. And you won't be obligated to spend another cent. These portfolios closed 228 double and triple-digit gains last year and already 88 more in 2024. While not all our picks are winners, members saw gains of +129.3%, +200.3%, +319.3% and even +475.0%. Special opportunity ends at midnight Sunday, April 28. [Start Zacks Ultimate Access Now »]( Today's Top Research [Spicing Up the Market: Chipotle's Earnings Beat Heats Up Restaurant Stocks]( This restaurant chain continues to innovate and grow at an impressive pace. [Read More »]( [Top Tech Stocks Moving Higher After Earnings]( These top-rated tech stocks look poised to outperform the broader market given slower GDP data and higher consumer prices [Read More »]( [Why Berkshire Hathaway Should Be in the Magnificent 7]( Warren Buffett's old economy conglomerate has now joined the elite technology companies at the top. [Read More »]( [3 Medical Services Industry Stocks to Buy as Nursing Market Booms]( The Zacks Medical - Services industry is benefiting from nursing care market growth and digital healthcare adoption. [Read More »]( [5 Industrial Products Stocks to Buy on Jump in Durable Goods Orders]( Easing price pressure is boosting demand, which is driving orders at U.S. factories and leading to higher production. [Read More »]( [Your Exclusive Access to Today's Top ETFs]( Use Zacks ETF Rank to help you select the very best ETFs for your portfolio. This quantitative ratings system takes into account asset class forecasts as well as several ETF-specific factors. All to give you a comprehensive account of a fund’s potential before you invest your money. [See Today's Top-Ranked ETFs »]( [Bull of the Day: Uber Technologies, Inc. (UBER)]( Uber shares have cooled off to trade at attractive levels for long-term investors given its impressive outlook in businesses it transformed. [Read More »]( [New Zacks Strong Buys for April 26th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App 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. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories 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. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( 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 of Service". [www.zacks.com/terms_of_service]( 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 April 1, 2024. 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 [( 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 support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606