Action Alerts PLUS senior portfolio analyst Jeff Marks is filling in for Jim Cramer, and breaking down what investors need to watch in the markets on Thursday.

With G20 a day away investors should keep a close eye on the trade deal, which has seen some flip-flopping from both the U.S. side and the Chinese side.

Additionally, Jeff will be watching how Nike (NKE - Get Report) will break down the China impact when it reports earnings after the bell and Boeing (BA - Get Report) , which received more bad news on its 737 Max.

Trade War

There's a lot going on when it comes to trade.

G20 has officially kicked off in Japan and President Trump arrived in Japan on Thursday.

On Wednesday, Trump told Fox Business that China "wants to make a deal more than I do," adding that it was "absolutely possible that we'll make a deal, but I'm also very happy where we are now." Trump also suggested that a fresh round of tariffs on China-made goods, if applied, would only be set at 10%, rather than 25%, a concession that, if the trade talks fall through, could allow both sides future talks.

But does this mean that we should start expecting the negotiations to go well? Here's what Marks thinks about what President Trump will do:

"I think he will be willing to negotiate at the end of the day I do believe that both sides do want to make some type of a deal. However, you know, now we're hearing reports that Xi is coming out with a list of sort of these, predefined conditions that, that he's going to want the US to agree upon before they really start kicking off talks. And I just don't know if the president's going to do that."

Nike's Earnings

Nike is expected to report earnings after the bell Thursday.

Analysts expect Nike to report earnings per share of $0.66 and then revenue of $10.16 billion.

One thing Jeff will be listening for on the conference call is how China will impact Nike.


"I think what you need to remember about Nike is that they're an international brand. They're huge. They're all over the place. So even though part of their supply chain is going to be bought in China, that doesn't necessarily mean that the Chinese goods are going to have to be imported from the U.S. And I think that's kind of what has helped them mitigate the tariffs so far."

Boeing's Shares Will Remain Grounded

Real Money Stock of the Day Boeing is hit by yet another negative headline surrounding its 737 Max jet, which is currently grounded.

The FAA said it found a "potential risk" in Boeing's MCAS software, reportedly during simulator tests last week and it will require additional fixes from Boeing and delay its official testing date until at least July 8, according to report from Reuters. The FAA also said the testing and procedures were following a process, not a timeline, for the 737 Max's recertification.

 

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