On today’s episode of Free Lunch, Ryan McQueeney discusses concerns about slowing economic growth in China and a major court ruling affecting healthcare stocks. He also highlights trending stocks Proteostasis Therapeutics and New Age Beverages. Later, he previews earnings from Red Hat, Oracle, and Micron.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
U.S. stocks were lower in morning trading again on Monday, underscoring fears of sluggish global economic data. Notably, investors have shown concern over weak retail sales figures from China, which saw its slowest growth in that metric in more than five years during November.
China’s economy will keep the spotlight throughout the week, as President Xi is scheduled to speak tomorrow on the 40th anniversary of the country’s economic reform. After this speech, government officials will meet at a central-planning conference that could help set the regulatory tone for the New Year and beyond.
Here in the states, healthcare stocks were getting pummeled on the news that a federal judge in Texas ruled the “Individual Mandate” clause of the Affordable Care Act unconstitutional. This provision, which requires that citizens acquire health insurance or face a fee, has faced renewed legal scrutiny after tax law changes brought said fee down to effectively $0.
Ryan covers these two major macroeconomic stories on the opening segment of today’s Free Lunch. He also highlights two of the morning’s top trending stocks: Proteostasis Therapeutics PTI and New Age Beverages NBEV. Want to know why these tickers are moving higher today? Make sure to check out the show!
Later, Ryan previews three of the week’s major tech earnings reports: Red Hat RHT, Oracle ORCL, and Micron MU.
Red Hat and Oracle are set to report later today. Both companies operate in the broader cloud-computing market, but each stock presents its own unique story. Red Hat is a smaller—yet important—open-source firm that is being acquired by IBM (IBM). Its stock is trading noticeably lower than the purchase price of this deal, however. Meanwhile, Oracle is a tech giant that is struggling to find growth amid increasingly competitive conditions in its core businesses.
These reports will carry serious weight today, as Wall Street still has questions about IBM’s acquisition and Oracle’s growth prospects. But the most impactful tech report this week will likely be Micron’s.
Once a Wall Street darling, Micron has been hammered lately. Earnings estimates have fallen off a cliff, and investors are ditching this memory chip maker left and right. Ryan takes a look at these estimates and speculates as to whether it can rebound this week on today’s Free Lunch. Don’t miss it!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Oracle Corporation (ORCL) : Free Stock Analysis Report
Red Hat, Inc. (RHT) : Free Stock Analysis Report
Proteostasis Therapeutics, Inc. (PTI) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
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