Stocks Up 8 Weeks In A Row, Growing Optimism Over U.S.-China Trade Talks

Stocks soared on Friday and for the week, with the Dow, Nasdaq, and Russell 2000 Index extending their winning streak to 8 weeks in a row.

The market had been cheering the prospect of a budget deal all week, and it was made official on Friday after President Trump signed it into law. While the declaration of a national emergency raises new uncertainties, it should have no impact on the market.

Traders have also been cheering the progress of the U.S.-China trade talks. China's President Xi joined U.S. Treasury Secretary Steve Mnuchin, and U.S. Trade Representative Robert Lighthizer in Beijing last week for high level talks. And a Chinese delegation will be arriving in the U.S. this week for a continuation of those talks, with both sides hoping to reach a memorandum of understanding.

The deadline for a deal is March 1st. But President Trump has already said that he'd be willing to extend the deadline for raising tariffs "if we're close to a deal."

The continuation of the negotiations this week, and President Trump's comment that he expects to meet with President Xi soon, suggests to me that they indeed are getting closer. There's still plenty of work to be done. But both sides have characterized the talks as productive.

In other news, Friday's Empire State Manufacturing Survey increased to 8.8 from last month's 7.6. It was noted that this reading was 'very positive' and points to 'solid and sustainable growth.'

And Consumer Sentiment came in at a strong 95.5, beating last month's 91.2 and views for 93.0. Both the current conditions component and the expectations component saw gains.

Traders will be listening for any news on how the continued trade talks are going this week.

And if we get more good news, we could see stocks extend their winning streak to 9 weeks in a row.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

Sponsor

$1 trillion trader shares best hedge for next crash...

He cut his teeth as a trader on one of the most notorious trading floors on Wall Street – making over $1 trillion worth of trades. And today, he says investors must protect themselves against volatility – even another massive crash. Fortunately, his preferred hedge – called VMQL – more than doubled in the 2008 crisis, and went up 4X in the dot-com bust. It's easy to get in, and it can shield you against the next crash.

Click here to discover the VMQL hedge.

3 Tech Stocks Under $10 to Buy Now

When searching for low-priced stocks, we look for similar trends in growth, value, and momentum, then we apply the Zacks Rank. Read More »

Solid Growth Prospects for Air Conditioner and Heating Industry

The industry has outperformed the broader Zacks Construction sector as well as the Zacks S&P 500 composite over the past year. Read More »

Near-Term Outlook for Railroad Industry Looks Promising

Rail, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #58 placing it at the top 23% of more than 250 Zacks industries. Read More »

Why Aerospace & Defense ETFs are Soaring in 2019

Progress in trade talks and better-than-expected earnings have benefited aerospace and defense companies. Read More »

Near-Term Outlook for Computer Networking Industry Looks Bright

Increased focus on cloud computing, big data and cloud storage will continue to aid revenue growth for the industry participants. Read More »

Sponsor

Zacks' Top 10 Stocks for 2019

Bull of the Day: Casey's General Stores (CASY)

This "boring" midwestern convenience store chain is anything but boring when it comes to earnings and price performance Read More »

New Zacks Strong Buys for February 19th

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