Stocks Closed Mixed, Small-Caps Up, S&P And Nasdaq Down, All Eyes On This Morning's PCE Report

Market Moves You Need to See Stocks Closed Mixed, Small-Caps Up, S&P And Nasdaq Down, All Eyes On This Morning's PCE Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Mixed, Small-Caps Up, S&P And Nasdaq Down, All Eyes On This Morning's PCE Report It was a wild day yesterday. The S&P and Nasdaq opened flattish, but then quickly sank with the S&P down as much as -0.70% and the Nasdaq down by -1.80%. But then, just as quickly, the markets turned higher with the S&P and Nasdaq up as much as 1.16% and 1.15% respectively. But that didn't last long either as they both headed back down before the S&P closed lower by -0.51%, and the Nasdaq by -0.93%. All the while, the Dow, small-cap Russell 2000, and mid-cap S&P 400 were in the green. At their best, the Dow was up 1.47%, the Russell was up 2.75%, and the S&P 400 was up 2.33%, before settling with gains of 0.20%, 1.26%, and 0.90% by day's end. The market rotation trade continues with the tech-heavy Nasdaq bearing the brunt of the rotation 'out,' while the small-cap Russell is the biggest beneficiary of the rotation 'in.' Since the market rotation began just a couple of weeks ago on 7/11, the Nasdaq has shed -7.87%, while the Russell has gained 8.35%. Wow! Yesterday's first estimate for Q2 GDP came in well above expectations at 2.8% vs. views for 2.0%. It was also a marked improvement over Q1's 1.4%. As impressive as it was, some worry that the pickup in the economy could further delay a rate cut. Weekly Jobless Claims fell by -10,000 to 235K vs. the consensus for 238K. Durable Goods Orders showed New Orders off -6.6% m/m vs. last month's 0.1% and the consensus for 0.3%. Ex-Transportation it was up 0.5% vs. last month's -0.1% and views for 0.2%. Core Capital Goods were up 1.0% vs. last month's -0.9% and estimates for 0.2%. And the Kansas City Fed Manufacturing Index slid to -13 vs. last month's -8 and estimates for -5. Today we'll get Consumer Sentiment, and the report everyone's been waiting for – the Personal Consumption Expenditures (PCE) index. That's the Fed's preferred inflation gauge. And it'll be the last inflation report we get before the Fed meets on July 30-31. The headline rate is expected to be up 0.1% m/m vs. last month's 0.0%, while the y/y rate is expected to come in at 2.5%, which is under last month's 2.6%. The core rate (ex-food & energy) is expected to be up 0.1% m/m, in line with last month's pace. The y/y rate, like the headline number, is expected to come in at 2.5% vs. last month's 2.6% as well. That comes out at 8:30 AM ET. We'll also get another 97 companies on deck to report earnings with names like Bristol Myers, Colgate-Palmolive and 3M to name a few. With one more day to go, the big three indexes are currently down for the week, while the small-cap Russell 2000 and mid-cap S&P 400 are up. As for the S&P 500 and Nasdaq, they are currently off -4.73% and -7.87% from their recent high close. That puts both of them in or around pullback territory. But I'd like to remind that pullbacks (defined as a decline of -5% to -9.99%) are common. Every bull market has them. In fact, stocks usually pull back roughly 3-4 times per year. Pauses like these help refresh and strengthen the market before their next leg up. So keep that in mind if the pullback deepens, as it could offer a tremendous buying opportunity. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [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 139 double and triple-digit gains already this year. While not all our picks are winners, members saw gains of +121.0%, +263.2%, +319.3% and even +812.0%. Special opportunity ends at midnight Sunday, July 28. [Start Zacks Ultimate Access Now »]( Today's Top Research [Tech Stocks: Should Investors Buy the Dip?]( Data points suggest that the worst might be behind the market, and an intermediate-term bottom may be on the horizon. [Read More »]( [Q2 Earnings Season Scorecard and Analyst Reports for Netflix, Wells Fargo & Comcast]( Director of Equity Research Sheraz Mian features his real-time Q2 earnings season's scorecard and delivers updated analyst reports on 16 major stocks. [Read More »]( [Why Did Alphabet Shares Fall Post-Earnings?]( The reaction to Alphabet's quarterly release was initially negative, raising the eyebrows of some. [Read More »]( [3 Solid Breakout Stocks to Buy Now: HBI, EGO, KGC]( Hanesbrands (HBI), Eldorado Gold (EGO) and Kinross Gold (KGC) are breakout stocks with a Zacks Rank #1 (Strong Buy). 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