On today’s episode of Free Lunch, Ryan McQueeney recaps news involving the U.S. housing market, Tilray, Johnson & Johnson, and Oracle. Later, the host provides an outlook for General Electric stock in 2019.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks were higher in morning trading, as investors looked to rebound from recent selling ahead of this month’s FOMC meeting. The Fed is expected to raise rates again this week, but many on Wall Street are hoping the central bank will take note of recent volatility and continue to shift toward a dovish tone.
One bit of data for the Fed to consider is the latest read from the housing market, which saw total housing starts surge 3.2% in November. This rally was inspired by strong multi-family activity, with single-family starts declining yet again.
In company news, shares of Tilray (TLRY - Free Report) surged in morning trading Tuesday after the Canadian cannabis company announced a supply and distribution agreement with pharma giant Novartis (NVS - Free Report) . The deal involving cannabis and traditional pharma is the first of its kind and adds further legitimacy to an industry that has recently seen major investments from tobacco and alcohol companies.
Wall Street this morning was also reacting to Johnson & Johnson’s (JNJ - Free Report) rebuttal to accusations that it knew about trace amounts of asbestos in its baby powder for decades. The consumer staples behemoth last night denied the allegations and reaffirmed its guidance, which helped shares rebound after the stock shed $50 billion in market value in just two days.
Another stock trending on Tuesday morning was Oracle (ORCL - Free Report) . The software firm reported mixed earnings on Monday afternoon, with earnings and guidance coming in ahead of estimates. However, revenue was basically flat on a year-over-year basis, punctuating concerns that Oracle is losing growth to key cloud competitors.
On the first half of today’s show, Ryan recaps all of these stories. Later, he puts the spotlight on General Electric (GE - Free Report) , which seems to have found at least a temporary bottom in recent trading sessions. With 2019 in view, GE can now move on from what has been a brutal year, and it will look to do that with a new CEO at the helm.
To prepare investors for GE’s 2019, Ryan looks back on its year-to-date price and earnings trends, its early 2019 estimates, and the new CEO’s possible path to recovery. Make sure to check out the show to hear more!
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