Stocks End Lower, Big Three Indexes Within Striking Distance Of Recent Highs

Market Moves You Need to See Stocks End Lower, Big Three Indexes Within Striking Distance Of Recent Highs [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, Big Three Indexes Within Striking Distance Of Recent Highs [Stocks End Lower, Big Three Indexes Within Striking Distance Of Recent Highs]Image: Bigstock Stocks closed lower yesterday in uneven trade. The Dow was down -0.62%, while the Nasdaq was only down -0.19%. The S&P was in the middle giving up -0.37%. The big 3 indexes are all within striking distance of last December's high. Last week's CPI and PPI inflation reports were bullish for the market as it showed inflation continues to ease. We have one more inflation report to get thru before the next FOMC announcement of Jan 31. And that's the Personal Consumption Expenditures (PCE) index on January 26. That's the Fed's preferred inflation gauge, so all eyes will be on that. Although, with both the CPI and PPI reports easing, it's likely we'll see more of the same with the PCE. While nobody is expecting the Fed to cut rates when they meet at the end of the month, every data point that comes in that shows inflation is on the decline, helps support the idea of cutting rates sooner (March) rather than later (May). Either way, the PCE report is roughly 1½ weeks away. And the FOMC announcement is 2½ weeks away. In the meantime, we've got plenty of other data that can move the market, not the least of which is earnings season. While earnings season has already unofficially begun with many of the big banks reporting last week and yesterday, the official start of earnings season kicks off this week. And since stocks typically go up during earnings season, that bodes well for the market. In other news, yesterday's Empire State Manufacturing Index declined to -43.7 vs. last month's -14.5 and views for -4.7. (That was the lowest reading since May 2020.) Today we've got a busy day of economic reports with MBA Mortgage Applications, Retail Sales, Import and Export Prices, Industrial Production, Business Inventories, the Housing Market Index, the Atlanta Fed Business Inflation Expectations, and the Beige Book report. We'll also hear from the Fed's Michael Barr, and Michelle Bowman. Fed officials can move the market at times with their comments. Yesterday, Fed Governor Christopher Waller spoke and mentioned that interest rate cuts are likely this year, "as long as inflation doesn't rebound and stay elevated." But his measured tone suggested the Fed was in no hurry. He said, "when the time is right to begin lowering rates, I believe it should be lowered methodically and carefully." "In many previous cycles, ... the FOMC cut rates reactively and did so quickly and often by large amounts. This cycle, however, ... I see no reason to move as quickly or cut as rapidly as in the past." We'll see what the other two have to say today. A little bit of good news could help the market begin its next leg higher. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Artificial Intelligence's Unquenchable Thirst For... Gold?!]( [image]( That's right, a critical element in the modern-day AI revolution is none other than the oldest store of value in the world. The same properties that have made gold coveted for years now make it essential to the very technology powering our future. As AI and modern technology evolve so does demand from tech companies behind it. [See what this means for investors and reveal a young company racing to meet demand.]( Today's Top Research [These Stocks Are Showing Relative Strength as S&P 500 Stalls Near Record High]( Investors can use relative strength to identify stocks that are outperforming within leading sectors and industry groups. [Read More »]( [3 Hotels & Motels Industry Stocks to Watch Amid Industry Woes]( These stocks look to prevail as the industry is benefiting from increasing demand and RevPAR. [Read More »]( [3 Pollution Control Stocks to Overcome Industry Headwinds]( The industry is benefiting from the growing pollution-related health concerns, and efforts to adhere to national and international norms. [Read More »]( [Finding the Best Cheap Stocks Under $10 to Buy in 2024]( We dive into an area of the stock market that appeals to many investors seeking diversification: cheap stocks that trade for $10 a share or less. [Read More »]( [5 Top Earnings Charts to Watch This Week]( There's more than just banks reporting earnings this week. [Read More »]( [Get Your Free Copy of Finding #1 Stocks - A $49.95 Value]( Starting today, you can claim a free copy of Finding #1 Stocks by Zacks' EVP Kevin Matras. You don't even have to pay for shipping! Its 300 pages unfold virtually every trading secret he has learned over the last 25 years to beat the market. Here's what's inside: - Exact formulas of strategies that produced gains up to +39.7% while the market dropped -18.2% in 2022… - How to spot bullish set-ups and bearish break-downs to stay ahead of the market… - Traits to determine the type of trader you are and finding stocks with highest probability of success… - Kevin's personal all-time favorite screening strategy… - And much more! This limited-time offer will end Saturday, January 20 or when our inventory is depleted. Don't miss this unique opportunity. [Get your FREE book now »]( [Bull of the Day: Regeneron Pharmaceuticals (REGN)]( This biotechnology company enjoys a litany of bullish catalysts on the horizon. [Read More »]( [New Zacks Strong Buys for January 17th]( 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 December 4, 2023. 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