On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains offers a quick global economic update amid heightened U.S.-China trade war worries. The episode also dives into Adidas (ADDYY - Free Report) and Lyft (LYFT - Free Report) earnings, what to expect from Uber (UBER - Free Report) Thursday afternoon, and why Intuitive Surgical (ISRG - Free Report) stock looks like a strong buy.
All three major U.S. indexes opened higher Thursday morning after two global economic powers showed signs of strength. Nonetheless, the trade fight between the world’s two largest economies has clouded the global growth picture. Currency worries, centered around the Chinese yuan, have only made matters worse. All of these concerns could prompt the Fed to cut interest rates again.
Moving on, we now have Q2 earnings results from 428 S&P 500 members out. Overall, earnings are up 0.9% on 5.1% higher revenues, but the tech sector has helped drag down profits (also read: A Stable Earnings Picture).
Adidas stock fell Thursday morning despite the fact that revenue climbed and it posted stronger-than-projected earnings. The sportswear giant’s sales in China were also impressive as it fights Nike (NKE - Free Report) for dominance in the country.
Wall Street also praised ride-hailing firm Lyft after it posted a narrower-than-expected Q2 loss and upped its guidance. This puts the pressure on its larger rival, Uber, which is scheduled to report its quarterly results after the closing bell Thursday. Our current Zacks estimates call for Uber to post second quarter revenue of $3.41 billion. Meanwhile, the firm is projected to report a large quarterly loss.
The episode then closes with a look at why minimally invasive robotic-assisted surgery firm Intuitive Surgical is a new Zacks Rank #1 (Strong Buy) stock.
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