On today's episode of Free Lunch, Ryan McQueeney recaps the latest in U.S.-China trade talks, oil prices , and earnings reports. Later, he chats with Dave Bartosiak about a few of the market's trendiest stocks, including AMD, ahead of 2019.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
After a remarkable intraday rally saw stocks surge into the green on Monday, investors opened Tuesday with even more optimism on the back of news that China is moving toward lowering tariffs on U.S.-made cars. This suggests recent legal tensions, including the arrest of Huawei's CFO, have not derailed the progress made at the G20.
Unfortunately it there was not good news for Apple AAPL , however. The tech behemoth was shaky once again, as Wall Street continued to ditch the iPhone maker on reports of weak sales from its marquee device. The latest indication of this negative sales trend came this week in a profit warning from Japan Display, a supplier of screens for Apple phones.
Elsewhere, shares of Stitch Fix SFIX were crushed in morning trading after the fashion subscription service reported weaker-than-expected member growth. Stitch Fix did manage to beat EPS and revenue estimates, but as is typically the case with young, subscriber-based companies like this, investors were much more focused on growth of its customer base.
Another stock grabbing headlines on Tuesday morning was AMD AMD . The chipmaker was added to Cowen's best ideas for 2019 list, and the analysts were happy to cite its market share gains over Intel INTC as a reason to be optimistic.
Ryan is joined by Zacks Strategist Dave Bartosiak to discuss the outlook for AMD in 2019. Dave suggests that AMD is a relatively safe bet for New Year ideas considering where the stock traded as recently as September, but he also argued that AMD would need to see a broader recovery in semiconductor stocks in order to have a truly remarkable 2019.
Dave also talked with Ryan about two earnings reports due out before the bell today: American Eagle Outfitters AEO and Dave & Buster's PLAY . Before earnings announcements, Dave looks for a divergence in the earnings trend and the share price momentum. If the earnings outlook is moving up and the stock isn't, Dave views that as an opportunity to cash in on a great report.
So which of these two stocks is catching Dave's eye today? Make sure to check out the episode to find out!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.