Market Moves You Need to See Stocks Closed Lower Yesterday After Rebound Falters, More Earnings On Deck
[Kevin Matras - EVP - Photo]
Profit from the Pros By Kevin Matras
Executive Vice President Stocks Closed Lower Yesterday After Rebound Falters, More Earnings On Deck Stocks closed lower yesterday, giving up sharp intraday gains by the close. After Monday's decline, Tuesday's rebound, and yesterday's intraday rally, which faltered by day's end, the market is essentially where we closed at on Monday afternoon. The major indexes are still in pullback/correction mode. And the market rotation trade is still in play. Worries over an economic slowdown and recession are still being talked about. But again, I believe talk of a recession is wildly premature. Yes, the labor market has slowed. But it's still adding jobs at a healthy pace. And a 4.3% unemployment rate is historically low. Moreover, Q2's GDP came in above expectations at 2.8%, while Q3's GDP is forecast at 2.5%. Additionally, corporate earnings and sales estimates are trending up with Q3 earnings growth estimated at 5.5% and sales at 4.8%; Q4 earnings at 11.7% and sales at 5.4%; and Q1'25 earnings at 13.2% and sales at 5.5%. None of this even remotely signals a recession. Again, as painful as pullbacks and corrections are, they are very common. Every bull market has them. And if you know these are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell. Earnings season continues. Before the open yesterday, Novo Nordisk reported a negative EPS surprise of -8.45%, and a negative sales surprise of -0.90%. That translated to a quarterly EPS growth rate of 3.17% vs. this time last year, and a sales growth of 25%. They were down -8.37% yesterday. Disney reported before the open as well and posted a positive EPS surprise of 15.8%, and a positive sales surprise of 1.06%. That equated to a quarterly EPS growth rate of 35% vs. this time last year, and a sales growth of 3.7%. They were down -4.46% yesterday. Shopify also reported before the open and posted a positive EPS surprise of 30%, and a positive sales surprise of 2.03%. That showed a quarterly EPS growth rate of 85.7% vs. this time last year, and a sales growth of 21.3%. They were up 17.8% yesterday. After the close, Occidental Petroleum posted a positive EPS surprise of 33.8%, although a negative sales surprise of -4.14%. That came out to a quarterly EPS growth rate of 51.5%, and a sales growth of 2.23%. They were up about 1.40% in after-hours trade. Also after the close, HubSpot reported a positive EPS surprise of 19.0%, and a positive sales surprise of 2.98%, for a quarterly EPS growth rate of 44.8% vs. this time last year, and a sales growth of 20.4%. They were up 2.37% during the regular session before earnings, and up another 7% in after-hours trade following earnings. Today we'll hear from another 719 companies, including Eli Lilly, Datadog and Cheniere Energy before the open, with Gilead Sciences, The Trade Desk and Take Two Interactive going after the close. On the economic report front yesterday we got MBA Mortgage Applications which showed a rise of 6.9% w/w with purchases up 0.8%, while refi's jumped 15.9%. And Consumer Credit declined to $8.9 billion m/m vs. last month's upwardly revised $14.0B (from $11.3B), and views for $10.0B. Today we'll get Weekly Jobless Claims and Wholesale Inventories. And we'll hear from Thomas Barkin, the President of the Federal Reserve Bank of Richmond, as he speaks at the Greater Prince George's Business Roundtable in Bowie, MD. And we'll see if the market can stabilize or attempt another rebound. See you tomorrow, [Kevin Matras - Signature] Kevin Matras
Executive Vice President, Zacks Investment Research Sponsor [American-Made Drones: The Future of National Security]( [image]( Next time you see a drone flying in your neighborhood, you might be witnessing a security breach. Discover why the National Defense Act is now prioritizing American-made drones... and why this Orlando-based drone maker is set to double according to Wall Street. [Full analysis here.]( Today's Top Research [Market Bottom or More Downside & Volatility Ahead?]( It's far too soon to assume that volatility will subside in the short-term. [Read More »]( [Geopolitics Escalate as Investors Seek Refuge in Defense Industry]( With the geopolitical environment escalating in Ukraine, investors can seek refuge in defense juggernauts like Northrop Grumman (NOC). [Read More »]( [Upstart Crushes Wall Street Expectations, Bucks the Trend]( The AI-based lending platform Upstart stands to benefit from the current economic backdrop. [Read More »]( [How Should You Play UBER Stock Following Q2 Earnings Beat?]( The leading ride-hailing company reported better-than-expected earnings per share and revenues and returned to profitability. [Read More »]( [Amazon (AMZN) Plunges 19.1% in a Month: Should You Buy the Dip?]( AMZN has taken a sharp downturn, which can be primarily attributed to its lower-than-expected second-quarter 2024 revenues. [Read More »]( [AI Boom Predicted to Hand Investors Life-Changing Wealth]( The Artificial Intelligence (AI) sector is estimated to soar from $40 billion to $1.3 TRILLION in just 10 years. You can be in the first wave of Zacks members to take full advantage of this trend that's about to change the world. The recent pullback has created attractive entry prices. Now's the time to take advantage. [See Zacks' Tech Stocks Now »]( [Bull of the Day: Datadog (DDOG)]( Ahead of Thursday's report, Akamai forms strategic security partnership with the "data guard dog". [Read More »]( [New Zacks Strong Buys for August 8th]( 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 July 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