New Trade Talks And New IPhones

The September episode of the Zacks Ultimate Strategy Session is now available for viewing! Tune in to this “must-see” event when Sheraz Mian, Tracey Ryniec, Ryan McQueeney and Kevin Cook discuss the investment landscape from several angles. Don’t miss your chance to hear:

• Tracey and Ryan Agree to Disagree on how risky it is to invest in companies with visionary CEOs
• Sheraz answers your questions in Zacks Mailbag
• Sheraz and Ryan choose one portfolio to give feedback for improvement
• And much more

Simply log on to Zacks.com and view the September episode here. And please let us know what you think of this format. Email all feedback to mailbag@zacks.com.


The market was dominated on Wednesday by two hefty topics: trade and Apple (NASDAQ:AAPL). The Big 3 indices had a mixed reaction to the day’s events and ultimately didn’t move much by the closing bell.

According to reports, the U.S. is interested in a new round of trade talks with China, which may be why President Trump has yet to initiate billions of dollars in new tariffs that have been set for the past week. The Dow initially jumped by more than 100 points this morning since the market loves to hear about any kind of communication between these trade adversaries. However, it didn’t last. The index dropped all the way into the red for a while before closing with a modest 0.11% advance to 25,998.9.

The S&P also bounced around in the session and closed the day with an even slimmer increase of 0.04% to 2888.9.

And then there’s the NASDAQ, which was coming off a couple positive sessions following last week’s 2.6% plunge. But today the index didn’t even peek its head above breakeven, though it did come off its lows of the session. Chipmakers had a rough day once again, as Micron slipped a further 4.3% after another warning of soft times ahead. The NASDAQ declined 0.23% today to 7954.2.

Meanwhile, most of the press on Wednesday was all about Apple, which held its annual September event. The company unveiled three new iPhones, including the iPhone XsMax that has a 6.5” screen and retails for nearly $1100. The new Apple Watch has a bigger screen as well, along with an EKG scanner and the ability to call emergency services in the event of a fall.

Shares of Apple were actually down more than 1.2% today, but that’s not unusual on the day of the event. There’s no doubt that the country’s first $1 trillion company will be back in the green and setting new records soon enough.

Today's Portfolio Highlights:

Momentum Trader: Analysts nearly doubled this year’s earnings estimates for General Finance (GFN) after the company reported breakeven results in its most recent quarter. The Zacks Consensus Estimate was calling for a loss of 4 cents. The performance helped GFN to finally break through $14, which is the kind of momentum Dave likes to see. The editor also appreciates that this business services company provides some diversification for a tech-heavy portfolio. He added the stock on Wednesday with a 12.5% allocation. Read the complete commentary for more.

Home Run Investor: Financial technology is a growing segment of the economy right now, but ScanSource (SCSC) hasn’t been surging like some of its counterparts. Brian Bolan thought this was a good time to sell this point-of-purchase tech provider for two reasons. Firstly, he gets to bank a 10% return. Secondly, it makes some room for a new buy.

And that new pick is Titan Machinery (TITN), which focuses on a diversified mix of agricultural, construction and consumer products dealerships in the upper Midwest. The company has beaten the Zacks Consensus Estimate for four quarters in a row, but its most recent surprise of 180% was the most impressive. Rising earnings estimates for this year and next over the past 30 days have made TITN a Zacks Rank #1 (Strong Buy). Read the full write up for more on today’s moves and a run through of all the portfolio’s holdings.

TAZR Trader: It’s been a rough several days for Micron (MU). You undoubtedly remember the stock plunging by 10% last Thursday on warnings that memory chip demand could soften. And today Goldman Sachs (NYSE:GS) “piled on” by dropping their price target on MU, leading to another 5% loss in the stock. But Kevin has some good news for the name. He thinks the GS move today will help the stock put in a bottom soon. In fact, positive technology outlooks from the likes of Apple and NVIDIA (NASDAQ:NVDA) have the editor wondering if Goldman is just playing catch-up since they missed the Micron sell-off. If that’s the case, then MU is a buying opportunity right now trading under 4X. He decided to add the stock again today in anticipation of an uptrend, which might begin after MU reports on Thursday, September 20. Read the complete commentary for more.

Have a Great Evening,
Jim Giaquinto