On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains takes a look at the new U.S. blacklist on nearly 30 Chinese companies and how it might impact the upcoming trade talks between the world’s two largest economies. We then dive into the dispute between the NBA and China, marijuana stocks, and more, before we finish up with a look at why Roku stock is a Zacks Rank #1 (Strong Buy).
U.S. stocks fell Tuesday, with all three major indexes down over 1% through morning trading. The downturn came after the U.S. added 28 more Chinese companies to its export blacklist that already includes telecom giant Huawei. The move is not directly related to trade but it could hamper the upcoming high-level trade talks that President Trump is somewhat optimistic about.
Meanwhile, the spotlight shines on Syria, Turkey, and the U.S. support for Kurdish fighters. On top of that, the NBA is now directly involved in the fight between Hong Kong and mainland China, after Houston Rockets GM Daryl Morey tweeted support for the protestors. Chinese companies like Tencent (TCEHY - Free Report) almost immediately began to suspend ties with what has become the most popular sports league in China.
Moving on, vaping fears have started to crush marijuana stocks such as Aurora Cannabis (ACB - Free Report) , Cronos Group (CRON - Free Report) , Tilray TLRY, and Canopy Growth (CGC - Free Report) .
Looking ahead, Delta (DAL - Free Report) is one of the biggest names to report its quarterly financial results this week.
Lastly, Roku is one of the only pure-play streaming TV stocks on the market, aside from Netflix (NFLX - Free Report) . The company’s products compete against offerings from tech powers Amazon (AMZN - Free Report) and Google (GOOGL - Free Report) . And Roku looks solid after its recent Comcast (CMCSA - Free Report) and Facebook (FB - Free Report) -induced selloff amid a growing streaming TV market that will soon feature Apple (AAPL - Free Report) and Disney (DIS - Free Report) .
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