Market Moves You Need to See Stocks End Lower Yesterday, Busy Day Of Earnings And Economic Reports Today
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks End Lower Yesterday, Busy Day Of Earnings And Economic Reports Today Stocks closed lower yesterday with all of the indexes in the red. After the Nasdaq and the S&P 500 closed at records over the previous few days (the Nasdaq as recently as Tuesday), with both closing up for the week last week, the Dow fell last week. Same goes for the small-cap Russell 2000 and mid-cap S&P 400. Some profit taking was bound to happen after a multi-week rally off of mid-April's pullback lows. But the recent price action has been uneven. Indexes with more big tech exposure have been noticeably outperforming those with lesser exposure. But even big tech was down yesterday with plenty of semiconductors losing ground (although not NVIDIA). It was a mixed bag of earnings reports yesterday. Before the open we heard from Abercrombie & Fitch and DICK'S Sporting Goods. ANF posted a positive EPS surprise of 28.9%, and a positive sales surprise of 7.19%. They soared by 24.32% in the regular session. DKS posted a positive EPS surprise of 12.2%, and a positive sales surprise of 2.58%. They gained 15.91% in the regular session. But after the close, Salesforce posted a positive EPS surprise of 2.52%, and a negative sales surprise of -0.07%. It was their first negative sales surprise in 18 years. Although, for context, that translated to a quarterly EPS growth rate of 44.4% vs. this time last year, and a sales growth of 10.7%. Nonetheless, they were down -16% in after-hours trade. We'll get another 132 companies on deck to report today with familiar names like Costco, Dell, and Marvell Technology to name a few. In other news yesterday, MBA Mortgage Applications declined by -5.7% w/w with purchases down -1.1% and refi's down -13.6%. The Richmond Fed Manufacturing Index came in at 0, an improvement from last month's -7 and views for -6. The Survey of Business Uncertainty showed U.S. firms expecting year-ahead sales growth to come in at 3.82% vs. last month's pace of 3.76%, while employment growth is expected to be 4.14% vs. last month's 4.04%. And the Beige Book report showed 10 of the 12 regional economies reporting slight or modest growth (2 showed no change). But businesses reported being "somewhat more pessimistic" this time vs. the previously reported "cautiously optimistic." Today we'll get the second estimate for Q1'24 GDP. Last time was 1.6%. Estimate this time is 1.5%. We'll also get the International Trade in Goods report, Weekly Jobless Claims, Corporate Profits, Retail and Wholesale Inventories, and Pending Home Sales. We'll also hear from Fed policymakers John Williams and Lorie Logan today. The report everybody is really waiting for, however, is tomorrow's Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge. That will show whether inflation is continuing to head back down, or if progress has stalled. That comes out tomorrow at 8:30 AM ET. In the meantime, we'll see if the market can regroup after yesterday's decline. See you tomorrow, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research Sponsor [Zacks 7 Best Stocks for June]( From 220 Zacks Rank #1 Strong Buy stocks, our experts say these 7 compelling companies are most likely to spike NOW. While we can't guarantee 100% success, they could be among the best performing stocks in today's market. [See Stocks Now »]( Today's Top Research [Hedging Trade: Buying Puts on the S&P500]( There are decent odds we see a small selloff in SPY... which may offer a large payoff. [Read More »]( [5 Top-Ranked Stocks Powering Nasdaq's Rally to the 17,000 Mark]( These five index stocks more than doubled this year and have a Zacks Rank #1 (Strong Buy) or #2 (Buy). [Read More »]( [Taking Stock of the Current Earnings Picture]( For 2024 Q2, total S&P 500 earnings are currently expected to be up +8.8% on +4.6% higher revenues. [Read More »]( [Goldman Sachs Projects Oil Demand Growth Till 2034]( Goldman Sachs has raised its forecast for global oil demand, predicting robust growth until 2034. [Read More »]( [Are Microcaps Setting Up to Outperform?]( Microcaps presently look undervalued at these levels, especially relative to their large cap brethren. [Read More »]( [Start Every Day Ahead of Wall Street]( Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news »]( [Bull of the Day: Garmin Ltd. (GRMN)]( GRMN soared after the standout GPS maker posted blowout earnings for the second period in a row in early May. [Read More »]( [New Zacks Strong Buys for May 30th]( 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 moreâdaily 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 May 6, 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