Stocks End Lower To Start The Week  Image: Bigstock Stocks closed lower yesterday with all of the indexes in the red. Stocks fell on the open, but turned higher in the afternoon, before heading back down toward the end of the session. Not overly surprising given the gains we saw last week, and the gains we've seen since stocks put in their key upside reversal on October 13. Profit taking was bound to happen. And that's probably some of what we saw yesterday. Seasonally speaking, things couldn't be better with Q4 being a great quarter for stocks, along with the post-midterm effect which typically sees stocks rise by double-digits in the forward 12-months. But not every day can be an up day. There were no new economic reports out yesterday. But today we'll get the Producer Price Index (another inflation indicator), and the Empire State Manufacturing Index. We'll also get more earnings with 153 companies on deck to report today (529 between today and the rest of the week). Earnings season is winding down. But it was another better than expected showing. And stocks cheered the news. In fact, there's plenty of things to cheer about in the economy. There's problems as well. But the economy has been pretty resilient. Just one look at the strength in the employment reports, Q3 GDP (+2.6%), and estimates for Q4 at +4.0%, and things have certainly bucked the worst-case scenario that people were predicting earlier in the year. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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