Stocks Off Ahead Of Busy Week For Earnings And Trade

Profit from the Pros Stocks Off Ahead Of Busy Week For Earnings And Trade Stocks closed lower yesterday, but near their highs of the day. Caterpillar's earnings miss, which they blamed on China (again), and Nvidia's earnings warning, who they too blamed on China, weighed on the market. But China's weakness should hardly come as a surprise. Their stock market entered bear market territory last year, and they recently reported their slowest annual growth rate in 28 years. Granted, that's still 6.6%. But it's well off their highs of 14.2% in 2007. Nonetheless, it highlighted the importance China plays in the earnings growth of many companies, and it underscored the high stakes involved in the U.S.-China trade talks, which resume later this week. Optimism is still high that a deal will get done. But the deadline is still another month away. And there's likely to be plenty of volatility as we get closer to that deadline. But if this week's talks produce a breakthrough of sorts, stocks could rally sharply. In the meantime, I would expect the market to continue its upward trajectory, which would essentially make up for the trade tension induced pullback we saw last year. In other news, the DOJ announced charges against China's Huawei CFO, Meng Wanzhou. Officials insist the charges are separate from the trade talks. But it's hard not to imagine it having an impact. At the very least, it's a source of friction in already difficult negotiations. The U.S. also announced sanctions against Venezuela's state-owned oil company PDVSA. While it's not expected to impact the oil market or U.S. gas prices (we only get 6% of our oil from Venezuela, and there's plenty of suppliers ready to take their place), it's likely to be devastating to them as they get 40% of their oil revenue from the U.S. Gladly, the equities market continues to focus on earnings and trade, as it should. As long as those two tracks remain positive, stocks should do great. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [CEO Bets $1.1 Billion on 1 Pot Stock]( The company's CEO declared he thinks they're only 2-3% of what the company could become. And we here at The Motley Fool are convinced we're only in the VERY early days of this company's trajectory... [What's the name of the stock?]( Most Popular Articles from Zacks.com [5 Moderately Priced Breakout Stocks for Strong Returns]( The key to this strategy is calculating the support and resistance levels of a stock. [Read More »]( [5 Shipping Stocks Your Portfolio Must Have in 2019]( Recent positive developments on the trade war front and decisions of the Chinese authorities to stimulate the economy will be major catalysts for the industry. [Read More »]( [Bright Near-Term Outlook for Technology Services Industry]( Growth opportunities from emerging technologies and investments post the tax reform are likely to offset challenges arising from U.S. protectionism and trade war related uncertainties. [Read More »]( [Top Stock Picks for the Week of Jan 28, 2019]( Tracey Ryniec and Ryan McQueeney take a look at two technology companies. [Read More »]( [A Jam-Packed Global Week Ahead]( The schedule is packed with loads of company quarterly earnings reports, a U.S.-China trade meeting, a FOMC rate meeting, and a US non-farm jobs report. [Read More »]( Sponsor [Why Haven't You Looked at Zacks' Top Stocks?]( Our 5 best-performing strategies have blown away the S&P's +15.8% gain from 2017 through 2018. Amazingly, they soared +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%. Today you can access their live picks without cost or obligation. [See Stocks Free >>]( [Bull of the Day: Sony (SNE)]( Tech stocks are leading the way off the lows and today's Bull of the Day is part of the herd. [Read More »]( [New Zacks Strong Buys for January 29th]( 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](