Stocks End Mostly Lower, But Remain Near All-Time Highs  Image: Bigstock Stocks were mostly lower yesterday with only the Dow eking out a small gain. After a strong showing in April, there was bound to be some profit taking eventually. Treasury Secretary, Janet Yellen's comments didn't help matters when she said she thought interest rates would have to rise to make sure the economy doesn't overheat. Granted, she didn't give a timeline. Plus, she doesn't make interest rate policy. Moreover, she's not saying anything we don't already know. Eventually, there will be a rise in interest rates. But according to the Fed, that's not likely until the end of 2023. So Yellen's statement was a bit odd given all that the Fed has said. So investors should brush this off. But on a day that stocks were already under pressure, statements like that only weigh on stocks further, even if they don't mean anything in any practical sense. Earnings season continues on with another 1,275 companies reporting throughout the rest of the week, and another 1,037 companies next week. It's been a stellar earnings season so far. And there's several more weeks to go. If the remaining weeks are anything like what we've already seen, that bodes well for stocks. In other news, Motor Vehicle Sales (total) came in at 18.5 million units (annualized) vs. last month's 18.0M and views for 17.5M. (North American-Made Sales were 13.9M vs. last month's 13.5M and views for 13.6M.) Same store retail sales via the Redbook report showed a 14.2% y/y increase vs. last month's pace of 13.9%. And Factory Orders rose 1.1% m/m. That's just under the estimates for 1.3%, but above last month's upwardly revised -0.5%. Today we'll get MBA Mortgage Applications, the ADP Employment Report, the PMI Composite Final report, and the ISM Services Index. The economy is getting stronger and stronger. And it looks like we could be at the beginning of a multiyear boom. And that suggests a lot more upside for stocks. So make sure you're taking full advantage of it. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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