On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into another round of worrisome U.S. economic data, this time from the services sector. Meanwhile, President Trump and the U.S. are set to roll out new tariffs on the European Union in connection to Airbus subsidies. We then take a look at PepsiCo (PEP - Free Report) and others, before closing with why Crocs (CROX - Free Report) is a Zacks Rank #1 (Strong Buy) stock.
Stocks fell Thursday morning on the back of worse-than-projected data from the Institute for Supply Management, with its nonmanufacturing index down to 52.6 in September. This marked its lowest level since August 2016 and came in well below economists’ projections of just over 55. The services sector downturn came just two days after ISM’s manufacturing index hit its lowest level in a decade.
Meanwhile, geopolitical tensions remain high throughout the world, and the U.S.-China trade war continues to hover over many economic discussions. And now the U.S. is set to roll out new tariffs on $7.5 billion worth of goods from the EU. The new duties are part of an ongoing fight over subsidies for Boeing (BA - Free Report) rival Airbus .
All three major U.S. stocks indexes were down in morning trading, which marked the continuation of a rough start to October. However, stocks jumped into the green as Wall Street projects the poor economic data could force the Fed to cut rates again.
Moving on, PepsiCo stock jumped over 4% after it posted stronger-than-projected earnings results. Constellation Brands (STZ - Free Report) was not as lucky, as its investment in Canadian Marijuana company Canopy Growth (CGC - Free Report) weighs on profits. Plus, Tesla (TSLA - Free Report) stock tumbled despite posting record quarterly deliveries.
Looking ahead, Costco (COST - Free Report) is set to report its quarterly results after the closing bell Thursday. Investors should pay close attention to how Wall Street reacts to the stock that is up over 40% in 2019 as it, and rivals Walmart (WMT - Free Report) and Target (TGT - Free Report) , prove they are ready to thrive in the Amazon (AMZN - Free Report) age.
Today’s episode of Free Lunch then closes with why clog and footwear firm Crocs is a Zacks Rank #1 (Strong Buy) stock.
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