We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stocks Cheer U.S.-China Trade Deal, Market Poised For Strong End Of Year Rally
Stocks soared on Monday after President Trump and President Xi came to a trade truce over the weekend which will benefit both countries.
As expected, stocks cheered the deal made at dinner on Saturday where they agreed there would be no new tariffs placed on either country for the next 90 days (that includes freezing the planned tariff increase from 10% to 25% on $200 billion of Chinese goods). In return, China has agreed to purchase a substantial amount of U.S. products, including agricultural goods.
Within those 90 days, both countries will continue their talks to work out the more difficult trade issues that have precluded an agreement prior to this.
If no agreement is reached within that time frame, the U.S. has threatened to raise those 10% tariffs to 25% as originally planned, and has threatened additional tariffs on another $267 billion worth of Chinese goods. China, of course, would retaliate as they have in the past.
But both countries took a victory lap yesterday and the markets responded enthusiastically.
The next 'crisis' that was set to grip the market was the impending budget deadline on December 7th where a showdown over the border wall could potentially shut the government down. But that deadline was pushed out two weeks to December 21st due to the funeral services for President George H.W. Bush.
In fact, the market will be closed on Wednesday in observance of the passing of our 41st President of the United States.
Yesterday's rally was impressive. As was the week that preceded it (which was the best weekly gain for stocks in 7 years).
While there could still be more volatility in the coming days and weeks, it's clear that with a historically strong economy and jobs market, stocks are poised for more gains to come and likely a spectacular 2019!
So make sure you're taking full advantage of it.
See you tomorrow,
Kevin Matras
Executive Vice President, Zacks Investment Research
In the first two months after California dispensaries started to legally sell recreational marijuana, companies in the cannabis industry increased by nearly $2 billion in value. And now Canada just legalized recreational marijuana. Savvy investors are already grabbing positions in these 3 picks that are set to soar.
This metric evaluates the market price of a stock relative to the amount of cash flow that the company is generating on a per share basis - the lower the number, the better. Read More »
Reduction in import tariffs will be a boon for U.S. automakers who are struggling to improve their bottom line and gain market share in the world's largest auto market. Read More »
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. .
From 2017 through Q3 2018, while the market climbed +35.0%, these strategies gained up to +122.0%, +137.9%, even +139.6%. 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, December 4.
Stocks soared on Monday after President Trump and President Xi came to a trade truce over the weekend which will benefit both countries.
