Stocks Closed Mixed As Market Tries To Rebound  Image: Bigstock Stocks closed narrowly mixed yesterday with the Dow and the S&P closing modestly in the green, while the Nasdaq closed ever so slightly in the red. The markets were sharply higher early on with all of the major indexes up over 1.25% at one point (the Nasdaq was actually up as much as 1.71% in the morning). By mid-morning, those gains turned into losses. But then they rallied back to their previous highs in the afternoon, before finally trimming those gains in the last hour of trade. A favorable earnings report by Facebook after the close (positive EPS surprise of 7.09%, although a negative sales surprise of -1.08% (even though revenue was up 6.64% y/y), and a positive surprise in user growth), helped the futures indexes in after-hours trade as FB jumped by more than 15%. Reports that Russia is cutting off natural gas supplies to Poland and Bulgaria for refusing to pay in rubles, sent natural gas prices up by more than 20% in Europe at one point before settling with an 8% gain by days end. (Natural Gas traded in the U.S. was 'only' up by 3%.) The bigger fear, of course, is what if Russia cuts off Germany (one of Europe's most dependent countries on Russian gas), and others? The markets are also watching the lockdowns in China and what that could possibly mean for an already strained supply chain. In spite of those headwinds, earnings season should act as a tailwind. And while you wouldn't know it from all the headlines, the expected 50 basis point rate hike next week, should also act as a tailwind since the higher rates will benefit the economy by tamping down inflation. In the meantime, the market will be trying to rebound from current levels. But there's another camp out there who thinks there's more downside to go. Bulls and bears will be fighting it out as they have very different ideas on where they think the market goes from here. To hear the bullish argument and the bearish argument (and which one is most likely to succeed), be sure to read our latest commentary... How to Make the Most of Today's Market Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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