Stocks were higher on Wednesday, recovering from Tuesday's losses. Fed Chair Powell said that interest rate cuts are likely at some point in 2024. He noted that he does not expect the U.S. to fall into a recession. Economic data released today included ADP's National Employment Report, which showed private employment grew by 140,000 in February, up from 107,000 in January but below estimates of 150,000. The Bureau of Labor Statistics reported that there were 8.86 million job openings in January, down from 8.89 million in December but above expectations for 8.85 million. The Dow rose 0.6%, the S&P 0.8%, and the Nasdaq 0.8%. Crude oil traded above $80 per barrel, while gold rose $13 to $21535 per ounce.

Stocks rose strongly on Friday morning after lower-than-expected employment growth raised the likelihood of an end to the Fed's rate hike campaign. The Labor Department said that the U.S. economy added 150,000 payroll jobs in October, down from a revised 297,000 in September and below the Reuters consensus forecast of 180,000. In other signs of a cooling labor market, the unemployment rate edged up to 3.9% from 3.8% a month earlier and annual growth in average hourly earnings slowed to 4.1% from 4.3%. The Dow rose 0.7%, the S&P 0.9%, and the Nasdaq 1.2%. Crude oil traded near $82 per barrel, while gold rose $8 to $2002 per ounce.

Stocks fell again on Thursday morning, a day after a sharp selloff prompted by the Fitch downgrade of U.S. government debt. On the earnings front, Qualcomm shares dropped 10% after the chipmaker reported mixed fiscal 3Q results and offered disappointing 4Q guidance. PayPal also fell sharply on concerns about weak operating margins and rising loss provisions. The Dow fell 0.3%, the S&P 0.5%, and the Nasdaq 0.5%. Crude oil rose 1% to $80 per barrel, while gold fell $5 to $1971 per ounce.

Stocks started a new bull market in 2Q23, as the S&P 500 climbed 20% above bear-market lows from last October. For the quarter, the index climbed about 8%. Performance was narrow in 2Q, led by last year's laggard sectors, including Communication Services, Consumer Discretionary, and Technology. Last year's top-performing sector, Energy, and the Utility sector, were the worst performers in 2Q23. The average stock in the diversified Argus Universe of Coverage rose 4% in the quarter, and the median stock advanced 2%. The average Argus BUY-rated stock rose 5.7%, while the average HOLD-rated stock gained 1.2%. We recently raised our sector rating on Consumer Discretionary to Over-Weight, as the employment environment is strong. We also look for a pick-up in EPS growth in Communication Services and Technology, and expect these groups to pace broad market performance. Below are the top 10 performers from the Argus Universe in 2Q23, many from Technology and Communication Services. After that, we list the bottom five performers.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

The volume of weekly insider transactions reported by Vickers Stock Research remains very low, as earnings season is in full swing. For the past few weeks, we've noted that, among the low volume, the vast majority of transactions have been the result of preplanned sales by corporate executives, directors and beneficial owners. That remains the case this week, as preplanned sales again make up the largest number of insider transactions.

Recession on Hold: Our Monthly Survey of the Economy, Interest Rates, and Stocks

Rally in October, Stumble on the Fed: Our Monthly Survey of the Economy, Interest Rates, and Stocks

In this edition, Vocera Acquisition a Boon for Stryker's Moat, Salty Sentiment Doesn't Portend Rocky Seas for Norwegian, Rising Rates Are a Positive for Life Insurers Like Prudential, and AMD, Coupa Software, and Conagra Brands

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Despite more signs of moderating inflation, stocks gave up most of their early gains on Thursday. The Labor Department reported an unexpected 0.5% decline in the July producer price index, the first negative reading since April 2020 at the onset of the pandemic. The data followed a positive reading on consumer prices on Wednesday, and raised prospects for more modest Fed rate hikes at upcoming meetings. On the employment front, new weekly claims for state unemployment benefits rose by 14,000 to 262,000, just below the consensus forecast. Continuing claims also rose slightly from the prior week. The Dow rose 0.08%, the S&P fell 0.07%, and the Nasdaq fell 0.58%. Crude oil rose more than 2% to $94 per barrel, while gold fell $10 to $1804 per ounce.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Literally everything seems to be going against the stock market. Rising yields across the curve, a strong dollar (which no one seems to be talking about), surging crude oil prices along with gasoline and heating oil, and a Fed that must start taking liquidity out of the system. Oh, and let's not forget about the war, continued supply issues, and stubborn inflation. Did we miss anything? Ah, yes. A breakdown in mega-growth stocks, an absolute collapse in hyper-growth stocks, a massive drawdown in cryptos, and broad economic worries.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Stocks rose strongly on Wednesday morning, recouping some of their recent losses. The rally was led by the Financial, Industrial, and Energy sectors. In testimony before Congress, Fed Chair Jerome Powell said that the Fed was prepared to raise interest rates by 25 basis points at its upcoming meeting despite the uncertain impact of the war in Ukraine. The Dow rose 1.7%, the S&P 1.6%, and the Nasdaq 1.0%. Crude oil continued to soar, rising to $108 per barrel, while gold fell $23 to $1921 per ounce.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Stocks fell on Wednesday morning following more signs of accelerating inflation. The Labor Department reported that U.S. consumer prices rose 6.2% year-over-year in October, up from 5.4% in September and above the consensus forecast of 5.9% growth. On the employment front, first-time claims for state unemployment benefits fell to 267,000 for the week ended November 5, down from 271,000 a week earlier but above the consensus forecast of 260,000. The report was released on Wednesday this week due to the Veterans Day holiday on Thursday. The Dow fell 0.1%, the S&P 0.1%, and the Nasdaq 0.4%. Crude oil traded near $83.50 per barrel, while gold rose $28 to $1859 per ounce.

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Last week, we wrote the following. 'Ultimately, insider-sentiment readings boast general improvement. Yet week-to-week data suggests it is premature for investors to ride share prices higher without wearing seatbelts.' The ink was barely dry on our comments when investors threw a 'taper tantrum' that saw the Dow Jones Industrial Average give back 730 points over three consecutive days. So how then did corporate insider react to the selloff (a selloff based on an issue that, arguably, many investors fully expected)?

This pick list highlights constituents of the Morningstar US Mid Cap Index that we believe offer investors the best risk-adjusted return prospects. The market capitalization range for U.S. mid-caps typically falls between $1 billion and $8 billion and represents 20% of the total capitalization of the U.S. equity market.

Positive 1Q21 Earnings Trends Boost EPS Forecasts

The stock market performed well during last week, as vaccine news and reopening news was generally positive. During Friday's session, the Dow Jones Industrial Average rallied 293 points, or 0.90%. The S&P 500 was up 0.10%, and the Nasdaq Composite fell 0.59%. For the week, the DJIA was up 1282 points, or 4.07%, the S&P 500 was up 2.64%, and the Nasdaq Composite was down 3.09%. Year-to-date, the DJIA is up 7.10%, the S&P 500 is up 4.99%, and the Nasdaq Composite is up 3.35%.

On paper, most recent investment trends remained intact for the full year 2020. Large-caps outperformed small-caps; growth topped value; and domestic stocks returned more than international stocks. Will it be a value market in 2021? Will small-caps continue their recent strong run? Given low interest rates, we favor growth stocks and think that investors recently were simply taking some extraordinary profits from their winners in an extraordinary year. Investors seeking value are encouraged to look for dividend yields in the 3%-4% range. As for small-caps, the promise of a COVID-19 vaccine is encouraging for these companies, which typically don't have the strong balance sheets of large-caps and are thus more dependent on a strong U.S. economy. Small-cap valuations remain depressed despite the recent run, and this group continues to look well-positioned in 2021.

Earnings: Better than Expected, but Still Down