On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into why U.S. stock indexes hit new highs amid U.S.-China trade war progress, interest rate cuts, and more. We also discuss some quarterly earnings results, including ride-hailing power Uber (UBER - Free Report) . The episode then closes with a look at why The Boston Beer Company, Inc. (SAM - Free Report) is a Zacks Rank #1 (Strong Buy) at the moment.
All three major U.S. indexes touched new highs yesterday, with the Dow Jones closing at its first new record since mid-July. The positivity came as reports continue to come out that the U.S. and China are closer to signing a so-called “phase one” trade deal, as President Trump seems more optimistic.
Meanwhile, the U.S. Federal Reserve and Chairman Jerome Powell appear less likely to cut interest rates again after the central bank last week cut rates for the third time since July. Federal Reserve Bank of San Francisco President Mary Daly then seemed to echo this sentiment with comments on Monday, after positive U.S. economic data came out last week.
Moving on, Uber stock tumbled Tuesday as Wall Street and investors continue to show their disappointment in the ride-hailing company and rival Lyft (LYFT - Free Report) . Sportswear firm Under Armour (UAA - Free Report) stock also fell after the company confirmed some troublesome news on the accounting front.
Software standout Adobe (ADBE - Free Report) was able to shine Tuesday, before Wall Street turns its attention to Qualcomm (QCOM - Free Report) , CVS (CVS - Free Report) , Adidas (ADDYY - Free Report) , Square (SQ - Free Report) , Disney (DIS - Free Report) , and others all set report later this week.
The episode then closes with why The Boston Beer Company looks strong as it pushes to expand its Truly Hard Seltzer business in the booming industry that has attracted the likes of Anheuser Busch Inbev NV (BUD - Free Report) and other international powers.
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