Strong Earnings Underpin Stocks, But Trade And Shutdown Worries Weigh

Profit from the Pros Strong Earnings Underpin Stocks, But Trade And Shutdown Worries Weigh Stocks closed mixed yesterday after a seesaw session. First, Weekly Jobless Claims came in much better than expected at 199,000 new claims, well below last week's 212K and views for 218K. Futures firmed up on the news. Then Commerce Secretary Wilbur Ross, in a wide-ranging interview, said that while a large delegation from China will be coming in for trade talks next week, we're still "miles and miles away from getting a resolution." That subsequently weighed on the markets. But after a modestly weaker open, stocks climbed into positive territory. The two failed Senate votes to reopen the government didn't help the markets, but strong earnings from the chipmakers definitely helped. Traders will continue to monitor the trade talks, the partial government shutdown, and earnings. With high level talks between the U.S. and China next week and a deal deadline fast approaching, there's no time to waste. The mood is still optimistic, but we're going to need to see some concrete progress soon. The longer the shutdown lasts, the greater the likelihood that we'll start to see some economic damage – transitory as it may be, it will not be good for stocks. And while earnings season is off to a strong start, we 'only' have another 5 weeks left. Stocks typically go up during earnings season so that's helping to underpin the market. But we're going to need to see some progress in the other aforementioned items if stocks are going to keep this rally going. There's plenty to be excited about right now. And once some of these worries are lifted, most notably trade with China, stocks should soar. Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Stocks to Buy BEFORE They Report Earnings]( [earnings estimate revisions development timeline] Next week 391 companies are set to report earnings. What if you could know in advance which few look to rock Wall Street and pop in price? Now you can. Zacks' proprietary "ESP" formula predicts positive earnings surprises with unthinkable 80% accuracy. This has led to double-digit gains in as little as 1 day. Your chance for access closes at midnight Sunday, January 27. [See Surprise Stocks Now >>]( Most Popular Articles from Zacks.com [Look Beyond Earnings: 4 Stocks With Swelling Cash Flows]( Analyzing a company's cash position can be far more rewarding as this reveals its true financial health. [Read More »]( [Retail-Discount Stores Outlook: Consumer Spending Key to Growth]( The strategy to sell products at discounted prices has helped players in the space to expand customer base. [Read More »]( [Best 3D Printing Stocks Set to Gain in 2019]( 3D printing stocks collectively surpassed the broader equity market last year, and have maintained the lead so far this year. [Read More »]( [Volatility Likely to Persist: 5 High Yielding Stocks Picks]( In the current market, it will be lucrative to invest in high-yielding stocks to ensure a steady income stream. [Read More »]( [Top ETF Trends for 2019]( We have highlighted some hot trends of the ETF industry for this year. [Read More »]( Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>]( [Bull of the Day: Funko (FNKO)]( Once called out as a fad, this pop culture maker is expected to see double digit earnings growth. [Read More »]( [New Zacks Strong Buys for January 25th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( [Customize Your Profit from the Pros Delivery]( Connect with Us: [Facebook]( [Twitter]( [StockTwits]( Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com](emailto:support@zacks.com) [Get it on Google Play]( [Get it on Google Play]( [Terms]( | [Privacy]( | [Unsubscribe](