Stocks Jump on Trump Trade Tweet, Q3 Earnings and Buy Marijuana Stocks - Free Lunch
On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into U.S.-China trade war updates, including President Trump’s tweet that helped U.S. stocks climb Thursday morning. We also look at the ongoing situation between the NBA and China, as well as some companies set to report Q3 earnings results next week, and why marijuana stock Cronos Group CRON is a Zacks Rank #1 (Strong Buy).
U.S. stocks popped Thursday morning after President Trump tweeted “Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House.” The announcement, which comes as top U.S. and Chinese officials start two days of trade meetings in Washington, helped push Dow components such as Caterpillar CAT and Intel INTC up big.
Still, many on Wall Street remain cautious and somewhat pessimistic that a trade deal gets done, especially as broader, non-tariff issues such as the U.S. blacklist of Chinese firms like Huawei, grows. Meanwhile, the ongoing fight between the NBA and China, which started with Houston Rockets GM Daryl Morey’s support of Hong Kong protestors, could have significant ramifications. With that said, the preseason game between the Los Angeles Lakers and Brooklyn Nets was played in Shanghai Thursday.
The NBA, Nike NKE, Adidas ADDYY, and many other businesses have millions of dollars riding on the continued expansion of the world’s largest basketball league in China, including Nets owner Joseph Tsai, who co-founded Alibaba BABA.
Moving on, Delta DAL stock slipped Thursday, which means Wall Street will now look to United’s UAL quarterly results next week. The firm is part of a group of more than 150 companies set to report their quarterly financial results, including JPMorgan Chase JPM, Netflix NFLX, and other giants (also read: Here's What to Expect as Q3 Earnings Season Revs Up).
We then close with why Cronos stock looks like a buy after four of the largest Canadian marijuana stocks, Aurora, Tilray, Canopy, and CRON, have been crushed.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Caterpillar Inc. (CAT): Free Stock Analysis Report
NIKE, Inc. (NKE): Free Stock Analysis Report
Adidas AG (ADDYY): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Cronos Group Inc. (CRON): Free Stock Analysis Report
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