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Stocks Hit New All-Time Highs Yet Again

Stocks closed modestly higher yesterday, with all of the major indexes inching their way to new all-time highs yet again.

Stocks were under pressure in the morning after it was reported that China was concerned that President Trump hasn't fully conceded to rolling back all of the tariffs ahead of the expected phase 1 trade agreement. None of this sounded like new news (of course China wants all of the tariffs taken off). And the market quickly shrugged it off.

It is expected that both sides will make some concessions on tariffs. Some have already been announced. We'll have to see what else is offered up as we get closer to a deal.

But it is widely believed that each country is looking forward to a deal as both countries will benefit.

And from an investment standpoint, while a partial agreement is far from ideal, a lessening of trade tensions is enough to send the market soaring even higher.

The markets also cheered a meeting between President Trump, Treasury Secretary Steven Mnuchin, and Fed Chair Jerome Powell yesterday morning. Nobody expects monetary policy to have been affected. But it was nice to see the meeting being characterized as "good & cordial", after so much public acrimony and contention.

Stocks continue to rally on our strong economy, historic unemployment, near record consumer confidence, low interest rates, and impressive corporate profits.

We are witnessing history in the making. And that's why the market is setting record after record.

And the best part is that it looks like there's a lot more upside to go.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research

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