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 indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Trade Talks And Budget Talks To Dominate Headlines This Week
Stocks closed mostly higher yesterday with the Russell 2000 Small-Cap Index leading the way.
Optimism over the U.S.?China trade talks continues to underpin the market.
A U.S. trade delegation arrived in Beijing this week for a continuation of trade talks. Negotiations will be conducted by second-tier officials in the first part of the week, setting the stage for top-level talks on Thursday and Friday led by U.S. Treasury Secretary Steve Mnuchin, U.S. Trade Representative Robert Lighthizer, and Chinese Vice-Premier Liu He.
Both countries have insisted the talks are going well and have been very productive.
But there are still difficult issues to be worked out, and with a deadline of March 1st, there's no time to waste.
Traders will be listening for any piece of news to gauge how these talks are going. But as I've said before, there will be both positive and negative news stories regarding the trade talks as we approach the deadline. So try not to get caught up in the noise.
In other news, reports that budget talks have broken down in D.C. seemed to have little impact on the market. We'll see what happens come Friday. But with neither party benefiting from the last prolonged shutdown, I believe it's highly unlikely we'll see another one. If we don't get an agreement, the administration, rightly or wrongly so, will likely seek alternative measures for border security funding and building. There could be a small technical shutdown, like maybe a couple of days, between a deadline failure and an announcement, but no protracted shutdown like the last one.
In the unlikely event we do get a lengthy shutdown, it's important to remember that after the last one, the permanent negative impact on our economy was estimated at 'just' $3 billion and would shave 'only' 2/10ths of 1 percent off our full year GDP. And on a 3% economy, it should have virtually no impact.
This could explain why the market pretty much ignored the reports on the budget impasse.
It's not that the budget talks aren't important, because they are. But the impact is transitory.
The market, instead, is correctly more focused on the U.S.-China trade talks as that will have both a short-term and a long-term impact on not just the U.S. and China economies, but the rest of the world as well.
For now, the market still remains optimistic that an agreement will be reached.
And if we do, I expect stocks to break out to new highs this year!
See you tomorrow,
Executive Vice President, Zacks Investment Research
I warned investors not to buy Bitcoin. Bitcoin lovers went berserk–but sure enough we were right and it crashed. The truth is, Bitcoin is a dinosaur, and those who heeded our warnings could have avoided big losses. Today, I know of at least three cryptocurrencies far better than Bitcoin. Now is a great time to get into these 3 super cryptos along with a few new names we've identified as potential big winners. I've just recorded a free presentation to tell you about the three cryptocurrencies poised to knock the socks off Bitcoin and dominate the entire crypto market.
Legal marijuana is one of today's fastest-growing investment opportunities. In fact, experts have compared the birth of this industry to the invention the automobile or the internet. But not all pot stocks are created equal.
Zacks is hosting the 2019 Marijuana Investors? Summit on February 26 to help you take advantage of this exploding industry. You?ll gain critical information for investing in cannabis-related companies and discover what we believe is the single best way to make money in this space.
Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com.
Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.
Get all of our market insights and much more when you connect with us.
This free resource is being sent by Zacks.com. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through January 7, 2019. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed above.
Zacks Emails If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email email@example.com.
Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606