Stocks Soar On Sign Of Trade Tension De-escalation

Stocks soared yesterday, erasing Monday's losses and then some.

Reports that the U.S. will delay some of the $300 billion in additional tariffs until December 15th, sent stocks rallying.

The delay covers a little more than half ($156 billion) of the $300 billion worth of goods identified for tariffs. This includes everything from tech, to toys, to apparel.

Many are hoping the slight de-escalation will foster a more productive atmosphere for the upcoming trade negotiations in September. And may lead to China de-escalating a bit as well which could see them come in and make some limited ag purchases.

We will have to see. But the market clearly breathed a measured sigh of relief that things got a little better on the trade front.

In other news, the NFIB Small Business Optimism Index increased to 104.7 from last month's 103.3.

And same store retail sales via the Redbook report showed y/y growth rates at 4.4%. This is down a bit from last month's 5.1%. But these are strong numbers and this report continues to underscore the strength of consumer spending.

Today we'll get look at housing with the MBA Mortgage Applications report.

And then tomorrow we've got a full slate with Weekly Jobless Claims, Retail Sales, the Housing Market Index, the Empire State Manufacturing Survey, Business Inventories, the Philadelphia Fed Business Outlook Survey, and Industrial Production.

In the meantime, our economy looks great.

And we'll see if the market can build on yesterday's gains.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

Sponsor

The Most Profitable Day In History

When this company makes a stunning announcement on November 13, 2019... Everything changes. And the few people who know about it ahead of time could turn every $500 into $55,280.

We're staring down the profit barrel of a potential TRILLION-dollar game changer. A small investment in this company has the chance to turn you into a multimillionaire. Overnight.

So take action and discover why Wall Street Insiders are quietly piling money into this game-changing stock.

5 Stocks Trading Near 52-Week High With More Room to Run

While investor apprehensions are not absolutely baseless, all stocks hitting a 52-week high are not necessarily overpriced. Read More »

Mergers & Acquisitions Take Center Stage in Biotech Industry

Given the dynamic and evolving nature of technology, the space is riskier than the more stable large-cap pharma. Read More »

Get Explosive Returns with the Filtered Zacks Rank 5 Strategy

Adding two relatively simple filters to our Zacks Rank #1 criteria narrows down the number of stocks and often increases its performance. Read More »

5 Safe Picks Amid Yield Inversion and Geopolitical Concerns

We narrowed down our search to five defensive stocks each carrying a Zacks Rank #1 (Strong Buy) and bearing strong growth potential. Read More »

Edgy Markets Add to Gold's Lure: 4 Stocks to Buy

As global tensions increase, the appeal of gold as a safe-haven asset has increased. Read More »

Sponsor

Breakthrough Tech Poised to Generate $12.3 Trillion

Imagine buying Microsoft stock back when people were just starting using PCs to access the internet. Or Amazon in the early days when it was building the foundation to become the retail juggernaut it is today. Those investments in world-changing companies could have been life-changing for you.

Today, we're looking at a new technology that could transform the world as much as the invention of the internet. Our research shows that 7 little-known stocks could skyrocket as leaders in this space. Early investors can still get in ahead of the surge – and the potential profits are staggering.

See the 7 breakthrough stocks now>>

Bull of the Day: HubSpot (HUBS)

HUBS hit the spot for investors in its earnings report with a big beat on sales and earnings sending shares surging. Read More »

New Zacks Strong Buys for August 14th

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