Stocks Closed Mostly Lower Yesterday, But Dow Makes New All-Time High

Market Moves You Need to See Stocks Closed Mostly Lower Yesterday, But Dow Makes New All-Time High [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Mostly Lower Yesterday, But Dow Makes New All-Time High Stocks closed mostly lower yesterday, except for the Dow, which eked out a small gain of 0.16%, and made a new all-time high and close in the process. Last week's FOMC Minutes, which showed "the vast majority" of participants leaning towards cutting rates in September, along with Fed Chair Jerome Powell's Jackson Hole speech, when he said "the time has come for policy to adjust," has set the stage for the long-awaited rate cuts to finally begin in less than 3½ weeks from now. Of course, nothing is a done deal until it happens. But Fed Funds traders have placed a 100% certainty that it's coming with a 68% chance of a 25 basis point cut, and a 32% chance of a 50 basis point cut. Aside from how big the first cut might be, the next big question(s) will be what happens afterwards? Will they cut again in November and December? Or will they pause for a few months to see how that goes and to collect more data? (As you know, the Fed continues to insist they will remain data dependent.) As for data, there's plenty more to come even before the next FOMC Announcement on 9/18. On Friday, 8/30 we'll get another look at inflation with the Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge. While the y/y headline number and core rate (ex-food & energy) are each expected to increase by one-tenth of a percent to 2.6% and 2.7% respectively (in contrast to the latest core CPI and PPI reports, which ticked down by one-tenth and six-tenths of a percent), that should not be enough to derail plans for September's cut. And that's because, according to the Fed, the risks for inflation have receded, while the risks for a slower-than-expected labor market have increased. That's also why next week's Employment Situation report on Friday, 9/6 is so important. After the last weaker-than-expected report, which sent stocks reeling, combined with last week's massive downward revision of 813,000 fewer jobs being created over the previous 12 months, the labor market has now, apparently, become the top focus for the Fed. And another weaker-than-expected BLS (Bureau of Labor Statistics) report could increase the odds for a 50 bps rate cut rather than 25. Before any of that, however, we'll get earnings from semiconductor giant NVIDIA on Wednesday, 8/28 after the close. They are one of the Magnificent 7 stocks, and the best performer of the bunch with an outsized gain this year, so far, of over 155%. But even before that, we've got a full slate of economic reports out today, including the Case-Shiller Home Price Index, the FHFA House Price Index, Consumer Confidence, and the Richmond Fed Manufacturing Index. While the Dow made new highs yesterday, the other indexes are within striking distance of their recent highs. And it won't take much to see them breakout to new highs and begin their next leg up. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [See Zacks' Top Stocks for Free]( Starting today, you can get instant access to the latest picks from our time-proven strategies which since 2000 have soared far above the market. While the S&P 500 averaged +7.0% per year, our top strategies averaged gains as high as +44.9%, +48.4% and +55.2% per year. You'll also get our free Special Report, Top 10 Stock Screening Strategies that Make Money which spells out the formulas behind these top strategies. [See Stocks Free »]( Today's Top Research [Nvidia Earnings: What You Should Know]( We deeper dive into the most highly-awaited release of the Q2 cycle and see if the stock is still worth a buy. [Read More »]( [Here's How You Can Play Nvidia's Earnings]( Nvidia's meteoric surge has drawn some investors to single-stock ETFs like NVDL and NVDX that aim to double its daily return. [Read More »]( [Major Tech ETF Finds Key Support; All Eyes on Nvidia Earnings]( Results out of semiconductor giant Nvidia will have broad implications on the semiconductor industry as well as the AI space. [Read More »]( [5 Best Small-Cap Stocks to Benefit From Interest Rate Cuts]( FULC, HRTG, SWIM, SHIP and BWAY are small-cap stocks that have strong momentum combined with a Zacks Rank #1 (Strong Buy). [Read More »]( [Top Consumer Loan Stocks to Benefit from Rate Cuts]( With the Federal Funds Rate expected to be cut by at least 0.25% in September, investors may want to consider TREE, ONIT and VEL that look to benefit. [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: Fabrinet (FN)]( Fabrinet achieved record revenue for the fourth consecutive quarter, totaling $753.3 million, a 15% increase year-over-year. [Read More »]( [New Zacks Strong Buys for August 27th]( 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 August 5, 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