U.S. Markets close in 50 mins

Fourth Quarter & 2020 Earnings Previews & Buy RH Stock at New Highs?

Benjamin Rains

On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains discusses the latest U.S.-China trade war updates and looks at some recent positive U.S. economic data. We then dive into third quarter 2019 earnings and see what to expect from Q4 and 2020. The episode closes with a look at why RH RH is a Zacks Rank #1 (Strong Buy) stock right now.

Stocks climbed higher Wednesday and in early trading Thursday after a rough first two days of December. The positivity came on the back of renewed U.S.-China trade agreement hope after President Trump reversed course from earlier in the week and said talks between the world’s two largest economies are going very well.

China seemed to support Trump’s comments after its Commerce Ministry said that the negotiating teams have remained in close communication.

Meanwhile, U.S. service sector activity expanded in November, according to the Institute for Supply Management. Wall Street now waits on Friday’s U.S. jobs data to help better understand the current economic picture.

Overall, Q3 earnings for the S&P 500 are projected to slip, as they are for fiscal 2019. But looking ahead growth appears to be back on the menu in 2020 (also read: Looking Ahead to the Q4 Earnings Season).

In company-related news, Slack Technologies WORK stock jumped Thursday as it tries to prove its work-place communication platforms can compete against Microsoft MSFT. Shares of Five Below FIVE also jumped, while Kroger KR fell.

We then close with why RH, formally known as Restoration Hardware, is a Zacks Rank #1 (Strong Buy) stock. Shares of RH soared over 10% to a new high Thursday, which might make Warren Buffett and Berkshire Hathaway BRK.A happy.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

  Click to get this free report    Microsoft Corporation (MSFT) : Free Stock Analysis Report    Berkshire Hathaway Inc. (BRK.A) : Free Stock Analysis Report    RH (RH) : Free Stock Analysis Report    Five Below, Inc. (FIVE) : Free Stock Analysis Report    The Kroger Co. (KR) : Free Stock Analysis Report    Slack Technologies, Inc. (WORK) : Free Stock Analysis Report    To read this article on Zacks.com click here.    Zacks Investment Research