Back to top

View the PFP Archive

Plus New Zacks Strong Buys for Wednesday, December 11
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Deal Reached On USMCA To Usher In Wave Of New Prosperity

Stocks closed modestly lower on Tuesday, but remain near all-time highs.

Traders cheered reports that the U.S. and China were close to an agreement to delay the new tariffs that are scheduled to kick in on December 15th. But until President Trump says yes or no, it's still just speculation. Nonetheless, it appeared things were "heading in a good direction."

The market also got good news on the USMCA trade deal. After an agreement was reached on Monday regarding new enforcement provisions, it was announced yesterday that the House would bring it to the floor for a vote by year's end where it's expected to pass with overwhelming bipartisan support.

Granted, the Senate won't take it up until next year. But the biggest hurdle was the House. And now with that, essentially, out of the way, it's expected to sail through the Senate when it comes to a vote.

There's been plenty of focus on the U.S.-China trade deal, and rightly so. They are, after all, our third largest trading partner. And the escalating tariffs and punitive measures from both sides created another layer of importance and urgency, not just for the primary players, but for the rest of the world to a degree.

But the USMCA trade deal is even bigger given that Canada and Mexico are our two largest trading partners. In fact, the U.S. exports more than 5 times as much to Canada and Mexico than to China. And the USMCA deal is being heralded as the largest trade agreement in the world.

This deal is estimated to create hundreds of thousands of new jobs, and usher in a wave of new prosperity for the U.S. (which is already doing great), as well as Canada and Mexico.

In other news, we'll get the FOMC Meeting Announcement this afternoon (2:00 PM ET), where the Fed is expected to keep rates unchanged. While some would love to see another interest rate cut, the Fed pretty much told everybody last time (in October) that rates were likely on hold for a while. But while that means no cut, that also means no increase either. And quite frankly, that's just fine.

The U.S. is in a sweet spot right now; a strong economy (although GDP could be higher, and likely will be with these new trade agreements), 50-year low unemployment, near record-high consumer sentiment, surging corporate profits, and household income at the highest level in 20 years – all with low inflation.

I've said it before and I'll say it again, this is an historic time for our economy and the market.

So make sure you're taking full advantage of it.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


NEW: Top 10 Stocks to Buy for 2020

He found Apple at $4... Oracle at $6... Amazon at $40...
He just released his most anticipated report of the year:
The Top 10 Stocks to Buy For 2020.

Claim your free copy now.

Most Popular Articles from

3 Cheap Tech Stocks Trading Under $10 to Buy for 2020

Stocks trading under $10 can be more volatile, but investors can still scoop up big returns with the right low-priced stocks. Read More »

India Streaming Market Set to Boom, Netflix Eyes Expansion

The company recently announced that it will spend $420 million this year and next on producing original content for the audience in India. Read More »

Pharma M&As Continue, Merck, Sanofi to Buy Cancer Drug Firms

The year so far has proved to be M&A rich as far as the drug/biotech sector is concerned. Read More »

S&P 500 Communication Services Sector Outperforms: Here's Why

Out of the 11 broad sectors of the index, Communications Services has gained more than 27.3% so far in 2019. Read More »

3 Office REIT Stocks to Grab as Labor Market Shows Resilience

Recent volatility in the market induced by the political uncertainties and trade disputes indicates that the sector will keep providing a relatively decent value. Read More »


Zacks Responds to Pot Stock "Gold Rush"

Legalized marijuana, with almost unimaginable profit potential, has swept over all of Canada, down through 33 states plus D.C. This brand-new industry is booming from $9 billion in 2017 to an expected $32 billion by 2020. It could soar above $146 billion by 2025.

Not since the Repeal of Prohibition in 1933 has there been such a release of pent-up demand.

Will you be one of the investors to take full advantage?

See Zacks' recommended buys >>

Bull of the Day: Zumiez (ZUMZ)

Estimates are zooming higher for this stock. Read More »

New Zacks Strong Buys for December 11th

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


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

Download our Zacks App for Apple iOS
Download our Zacks App for Android

Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.