Back to top

Free: Subscribe to Profit from the Pros

Zacks' Bull Stock of the Day, morning market e-briefing, strategies for picking the best stocks, funds, ETFs, and options plus more.

Join 500,000+ investors in-the-know.

Privacy Policy

X

View the PFP Archive

Profit from the Pros

Tariffs Weigh On Stocks, Market Set To Pivot Towards Earnings Season

Stocks were down yesterday on increased tariff concerns.

After the White House readied another $200 billion in tariffs on China, stocks predictably sold off on the news. But not that bad. In fact, none of the major indexes were even down a full percent. The Dow was the hardest hit and only gave up 0.88%.

But as I've been saying, analysts are putting the potential hit to S&P companies at just a few percent of forward earnings growth, which will still mean double-digit earnings gains, and in turn, the fuel for stocks to keep moving higher.

While that was happening, crude oil dropped by 6% with Brent futures trading at $74.09 after hitting close to $80 less than two weeks ago. As more supply comes onto the market, prices should continue to drop. Between $60-$70 would be ideal. That still leaves plenty of profit for producers and provides plenty of relief for users.

But the market will likely keep its focus on Q2 earnings season. With the market's median gain during earnings season in excess of 2% since this bull market began, this is where the real action is. And being in the right stocks could mean significantly larger gains than that.

Companies are already starting to report, even though the official start to earnings season doesn't begin until Wednesday, July 18th, when Alcoa reports after the market's close.

Stocks are still up for the week. But it's too early to tell how the week will end.

Nonetheless, with stocks up more than 70% of the time during the aforementioned earnings seasons, the smart money is for higher prices again this time around.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

Sponsor

Claim your Free Copy of Finding #1 Stocks

Finding #1 Stocks Report
One single idea changed Kevin Matras' life as an investor, enabling him to tap into the greatest force driving stock prices. In Finding #1 Stocks, Kevin reveals his top stock-picking secrets and strategies based on this powerful idea. Now you can claim a free copy of the 300-page hardcover book.

These strategies produced gains of 104%, 109%, even 115% in 2017 alone. You can take full advantage of them without attending a single class or seminar, in a lot less time than you think. Opportunity ends midnight Tuesday, July 17.

Learn more now >>

Most Popular Articles from Zacks.com

5 Stocks to Enjoy Earnings Beat Before Q2 Release

Outperforming earnings estimates is almost equivalent to beating the company's own expectation as well as the market perception. Read More »

4 Retail Stocks to Buy as Q2 Earnings Season Knocks

Retail-Wholesale, which typically performs well in a maturing economic cycle, is among the sectors that are likely to steal the show this season. Read More »

Start of Q2 Earnings Season

The Q2 earnings season will really get going with the July 13th releases from JPMorgan, Wells Fargo and Citigroup. Read More »

5 Stocks With Domestic Focus to Evade Trade War Fears

U.S. companies with a domestic focus look a lot safer as they normally remain insulated from the trade tensions. Read More »

5 Energy Stocks Set to Explode Higher

Given the barrage of bullish trends, energy stocks are set to explode higher heading into the Q2 earnings season. Read More »

Sponsor

What's Today's Top Rated Mutual Fund?

Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family.

Get started now>>

Bull of the Day: Bonanza Creek (BCEI)

Looking for a small cap E&P to cash in on rising crude prices? Read More »

New Zacks Strong Buys for July 12th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »

Customize Your Profit from the Pros Delivery
Connect with Us:
Facebook
Twitter
StockTwits
Contact Info:

Phone: 1.800.767.3771 ext. 9339
Email: support@zacks.com

 
Get it on Google Play Get it on Google Play