Wall Street gained momentum on Nov 7 and finished the day in positive territory after reports surfaced that United States and China will remove tariffs on each other’s products in stages. Investors interpreted it as a sign of the trade deal nearing completion soon.
The three major indexes— the Dow, S&P 500 and Nasdaq Composite — finished in the green on Thursday. Dow hit 27,674.80 after gaining 0.7%, the S&P 500 finished at 3,085.18 after adding 0.3% and the tech-laden Nasdaq Composite closed at 8,434.52 after increasing 0.3%.
The fear-gauge CBOE Volatility Index (VIX) gained 1.6% to close at 12.81 on Nov 7. Finally, advancers outnumbered decliners on the NYSE by a 1.13-to-1 ratio.
U.S.-China Tariff Rollback Ahead
The United States and China have agreed to get rid of tariffs on each other’s goods in stages, as both sides continue to discuss and conclude the prolonged dispute over trade, a Bloomberg report cited Thursday. Both White House economic adviser Larry Kudlow and China’s Ministry of Commerce spokesman Gao Feng confirmed the progress in trade negotiations.
According to Gao, both U.S. and China should remove the incumbent additional tariffs in the same proportion at the same time, based on the agreement’s content. Tariffs agreements and concessions are an important condition for reaching the much-awaited first phase of the trade deal.
However, Trade adviser Peter Navarro told Fox Business that no agreement had been agreed upon currently to remove any existing tariffs as a condition of the first phase of the deal. In fact, he added that the only person who can decide that is President Donald Trump.
Q3 Earnings Keep Beating Estimates
Shares of Discovery, Inc. (NASDAQ:DISCA) added 12.1% on Nov 7 after the media company reported Q3 2019 adjusted earnings of 87 cents per share, which beat the Zacks Consensus Estimate by 4.8%. The company’s revenues also rose 3.3% year over year to $2.68 billion and surpassed the Zacks Consensus Estimate by 0.1%.
A major reason for the media giant’s stellar earnings and revenues was higher advertising sales across its networks. The growth in advertising was pushed by rise in pricing and continued monetization of digital content offerings and inventory. The distribution revenues growth was a result of increased contractual affiliate rates and additional carriage on streaming platforms. (Read more)
Shares of Malibu Boats, Inc. (NASDAQ:MBUU) gained 12.7% on Thursday after the recreational powerboats manufacturer reported earnings of $0.83 per share for the quarter ended September 2019, beating the Zacks Consensus Estimate of $0.70.
The company’s revenues of $172.08 million for the given quarter also surpassed the Zacks Consensus Estimate by 14.83%. (Read more)
Discovery carries a Zacks Rank #2 (Buy) and Malibu Boats carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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