Stocks End Lower, But On Pace For 4th Up Week In A Row  Image: Shutterstock Stocks closed modestly lower yesterday, putting an end to the 5-day winning streak for the S&P and Nasdaq. But the 3-week winning streak, which is currently on pace for 4-weeks, is still going strong. We had plenty of earning reports yesterday before the open from the likes of Lowe's (positive EPS surprise of 0.33%), Medtronic (positive EPS surprise of 5.93%), and Baidu (positive EPS surprise of 14.29%). Some traded higher and some traded lower. But what the market was really waiting for was earnings from NVIDIA after the close. After the bell they posted a 19.64% positive EPS surprise, and an 11.90% positive sales surprise. That translated to more than a 10x increase in quarterly earnings vs. this time last year, and a 205% increase in sales. Shares were down by -0.92% during the regular session yesterday before earnings, and another -1.7% in after-hours trade. But let's not forget that they are up 242% so far this year. A stunning performance for the company and the stock. In other news, yesterday's Existing Home Sales report came in at 3.79 million units (annualized) vs. last month's 3.95M and views for 3.91M. That's down -4.1% vs. last month. On a y/y basis it's down -14.6%. Yesterday's FOMC Minutes showed the Fed agreed to 'proceed carefully' on rates. And that they wanted to keep them restrictive 'for some time.' No new revelations. And they continue to tout their 2% inflation target. It was also noted that virtually nobody was interested cutting rates anytime soon for fear that inflation would remain elevated or climb back up. The next FOMC meeting is in 3 weeks on December 13. It's looking more and more likely that the Fed will leave rates unchanged, yet again, making it their 3rd pause in 3 consecutive meetings. In fact, Fed Funds traders are placing a 99.8% probability that the Fed leaves rates where they are. Will they call it quits afterwards? We shall see. In the meantime, we'll get one more look at inflation next week on 11/30 with the Personal Consumption Expenditures (PCE) index (which is the Fed's preferred inflation gauge). If it's anything like last week's better than expected CPI and PPI reports, it should further solidify that the Fed might very well be done with their historic rate hike cycle once and for all. Today is the last trading day before Thanksgiving Day tomorrow (when the markets are closed). But it'll be a busy report day with MBA Mortgage Applications, Durable Goods Orders, Weekly Jobless Claims, and Consumer Sentiment. Trading will resume on Friday, but the markets will close early for Black Friday. If all goes well today and Friday, we could be looking at the market's 4th up week in a row. Either way, the last 3½ weeks have been spectacular. And it looks like the Q4 rally has even more upside to go. Have a Happy Thanksgiving. See you on Friday,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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