Trump vs. Google, and Why Microsoft Is a Strong Buy Stock | Free Lunch

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On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney recaps the morning's top market headlines, including President Trump's criticism of Google, the return of the Pumpkin Spice Latte, and another batch of retail earnings reports. Later, he investigates why Microsoft is currently sporting a Zacks Rank #1 (Strong Buy).

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Shares of Google parent Alphabet GOOGL opened lower on Tuesday after the search giant found itself the target of late-night tweets from President Donald Trump. In two posts sent in the wee hours of the morning, Trump claimed that Google rigs its results in favor of "left-wing media," cloaking positive news about him and his administration in the process.

The president cited some dubious numbers in his tweets, but as investors know from Trump's clashes with Amazon AMZN and Jeff Bezos, the reasoning might not matter so much as the results. If Google has drawn the permanent ire of Trump, it could be in store for more public criticism soon.

Elsewhere, investors and coffee drinkers today celebrated the Pumpkin Spice Latte, a popular seasonal beverage from Starbucks SBUX . In its 15 th year, the PSL is a Starbucks staple and a trendy favorite among younger caffeine enthusiasts. This year, it is debuting in the month of August for the very first time.

Also grabbing Wall Street's attention this morning were a handful of interesting earnings reports from the retail sector. Notably, luxury retailer Tiffany & Co. TIF surpassed estimates and raised its guidance, while shoe powerhouse DSW DSW performed likewise.

Ryan discusses of these news stories, providing investors with the key facts they need to know and giving his unique perspective on the headlines-all on the first half of today's show.

On the second half of the show, Ryan discusses software pioneer Microsoft MSFT , which is currently sporting a Zacks Rank #1 (Strong Buy).

To explain why Microsoft holds this top rank, the host first reminds viewers of the Zacks Rank model works. The Zacks Rank looks at four factors related to earnings and estimate revisions-Agreement, Magnitude, Upside and Surprise-and Ryan investigates the latest Microsoft data for each of these.

Ryan also highlights Microsoft's valuation trends and looks at where it ranks within the competitive cloud computing market right now! Interested in Microsoft stock ? You won't want to miss this episode of Free Lunch!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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