For days now, the market had been dreading the 10-year Treasury note hitting 3%...and today it finally happened for the first time in more than 4 years. As was expected, stocks took a sharp move lower in the session despite this solid earnings season. "So what? Going all the way back to the 1957 recession, and the 9 recessions between then and our last one in 2007, we’ve never seen a recession begin with rates below 3.90%," said Kevin Matras in Options Trader. "And just looking at our last two recessions, the 10-year was at 4.10% in 2007, and 4.89% in 2001. This is much ado about nothing." The Dow climbed more than 100 points in the morning, but then took a header and finished with a 1.74% drop (or nearly 425 points) to 24,024.1. The index did come well of its lows of more than 500 points, but this marks a fifth straight day in the red. In addition to rates, the Dow was also impacted by industrial bellwether Caterpillar, which reported good quarterly numbers but warned that it could be the “high-water mark” for the year. The NASDAQ was down 1.70% to 7007.4 and the S&P slipped 1.34% to 2634.6. “Sell offs seem so orderly when markets are being pushed lower and lower and the buyers just wait for the moment to “buy the dip.” That is just what we had today, so be looking for a relief rally soon,” said Brian Bolan in Technology Innovators. The market is just not responding to this solid earnings season, which makes the editors’ jobs more difficult. But they’re still making trades designed to take advantage of this latest pullback while also protecting from any further dips. On Tuesday, Stocks Under $10 picked up a company with good revenue growth, while Options Trader and Surprise Trader each added names that seem set for strong upcoming reports. Also, Short List swapped out two names in this week’s adjustment. Today's Portfolio Highlights: Stocks Under $10: Brian Bolan wants to see revenue growth in his next buy for the portfolio, and that’s exactly what he got with the addition of toymaker Funko (FNKO) on Tuesday. In early March, the company reported revenue of $169.5 million, which was well above expectations of $146.5 million. It also reported an earnings surprise of more than 46%. The editor wouldn’t be surprised if this recent IPO retested its highs at $9.90 moving forward. Read the full write-up for a lot more on this new addition. Options Trader: On Thursday, Stryker (SYK) will be going for another positive surprise…and its Earnings ESP for the quarter suggests that the odds are in its favor. Kevin really likes this medical technology company’s solid fundamentals and its bullish chart pattern with a symmetrical triangle in an uptrend. The editor wanted to get into this name before its report, so on Tuesday he bought to open two June 170.00 Calls. Get more specifics in the full write up. Surprise Trader: A stiff market pullback can be a great time to buy, so Dave picked up a biopharma company on Tuesday that appears set for another beat next week. Gilead (GILD) is a Zacks Rank #2 (Buy) with a positive Earnings ESP for its next quarterly report scheduled for a week from today. The company has topped the Zacks Consensus Estimate for three straight quarters now. Read the complete commentary for more. Zacks Short List: Only a couple swaps in this week’s adjustment. The portfolio short-covered Ctrip.com Int'l (CTRP, +5.9%) and Sina Corp (SINA, +1%). They were replaced with the additions of Boyd Gaming (BYD) and Schlumberger (SLB). Learn more about this emotion-free portfolio that takes advantage of falling and volatile markets by reading the Short List Trader Guide. All the Best, Jim Giaquinto Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >> Zacks Investment Research