U.S. Markets closed

Stocks Fall on U.S.-China Trade and Tariff Fears & Buy Allegiant Stock - Free Lunch

Benjamin Rains

On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains breaks down the U.S. and China trade war as September’s tariffs kick in. Stocks, including giants such as Boeing BA, Caterpillar CAT, and 3M MMM, all fell as global economic slowdown fears start to impact the U.S. We also dive into why Allegiant Travel Company ALGT is a Zacks Rank #1 (Strong Buy) stock.

The first official trading day of September saw all three major U.S. indexes fall. Tuesday’s downturn came after a volatile August and followed the new round of tariffs that were imposed on Sunday. These new U.S. tariffs are set to impact more consumer-related goods, which could hurt retail spending in the vital holiday shopping period. For instance, J.P. Morgan JPM estimates the new consumer-facing tariffs will cost the average American household $1,000 a year.

Meanwhile, retaliatory Chinese tariffs on everything from soybeans to crude oil also went into effect. Plus, the Institute for Supply Management’s purchasing managers index fell to 49.1 in August. Investors should note that anything below 50 signals contraction.

On top of that, the U.S. trucking industry has been hit by the broader economic slowdown. And the Wall Street Journal reported that economic confidence for small U.S. companies slipped to its lowest levels since 2012.

Moving on, Wall Street might turn its attention to Slack WORK Wednesday afternoon. Shares of newly public work-based communication tech firm have fallen, in similar fashion to Uber UBER and Lyft LYFT and in contrast to Pinterest PINS and Beyond Meat BYND.

This episode of Free Lunch then closes with a look at why discount airline and travel company Allegiant Travel is a Zacks Rank #1 (Strong Buy) stock.

Legalizing THIS Could Be Even Bigger than Marijuana

Americans spend an estimated $150 billion in this industry every year… more than twice as much as they
spend on marijuana.

Now that 8 states have fully-legalized it (with several more states following close behind), Zacks has identified 5 stocks that could soar in response to the powerful demand. One industry insider described the future as “mind-blowing” – and early investors can still get in ahead of the surge.

See these 5 “sin stocks” now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
 
JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
 
The Boeing Company (BA) : Free Stock Analysis Report
 
3M Company (MMM) : Free Stock Analysis Report
 
Caterpillar Inc. (CAT) : Free Stock Analysis Report
 
Lyft, Inc. (LYFT) : Free Stock Analysis Report
 
Slack Technologies, Inc. (WORK) : Free Stock Analysis Report
 
Pinterest, Inc. (PINS) : Free Stock Analysis Report
 
Beyond Meat, Inc. (BYND) : Free Stock Analysis Report
 
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research