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Trade War Hope, Retail Strength & A Top Stock Pick - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains discusses some of the latest U.S.-China trade war news that seems more positive as President Trump continues to shift his tone. The episode also dives into solid U.S. consumer news and retail success from the likes of Dollar General (DG - Free Report) and Dollar Tree (DLTR - Free Report) . We also touch on why U.S. stocks and bonds appear so strong, before closing with a look at why Deckers (DECK - Free Report) is a Zacks Rank #1 (Strong Buy) stock.

All three major U.S. indexes jumped Thursday morning on positive U.S.-China trade war updates as our wild August comes near an end. President Trump continued his positive tone, and Beijing also seemed to project a sense that the world’s second-largest economy wants to inch closer to some type of resolution.

Clearly, the back and forth has been a story for over a year, and nothing is certain. Nonetheless, shares of Caterpillar (CAT - Free Report) , Boeing (BA - Free Report) , Home Depot (HD - Free Report) , and other giants all surged. Investors should note that U.S. second-quarter GDP data was revised down slightly, but the Atlanta Fed still calls for solid Q3 expansion. Meanwhile, new Conference Board data showed that U.S. workers were more satisfied with their paychecks and jobs.

On top of that, global economic fears and negative yields have made U.S. stocks and government bonds look even stronger. This could be part of the reason why the S&P 500 is up roughly 15% in 2019 despite all the trade war and recession worries.

Discount retailers Dollar General and Dollar Tree also both impressed Wall Street. The strength continued a strong showing from retailers, including Target (TGT - Free Report) and Walmart (WMT - Free Report) , that has proven many can thrive in an Amazon (AMZN - Free Report) obsessed retail age.

This episode of Free Lunch then closes with a look at why footwear retailer Deckers Brands is a Zacks Rank #1 (Strong Buy) stock. The company’s Ugg unit has been a standout, but it also has a rising star on its hands that has seen sales soar amid partnership and positive buzz, including with an upstart Lululemon (LULU - Free Report) competitor.

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