Fed Cuts Rates, Q2 Earnings Season Overview & Why Chegg (CHGG) Stock is a Strong Buy | Free Lunch
On today’s episode of Free Lunch here at Zacks, which is back by popular demand, Associate Stock Strategist Ben Rains discusses the Federal Reserve’s rate cut and U.S.-China trade talk updates. The shows then takes a look at the second-quarter earnings season so far, before diving into details on specific companies, and more.
The fed cut interest rates Wednesday for the first time since 2008, which caused the Dow, S&P 500, and the Nasdaq all to slip over 1%. Aside from a possible ‘sell the news angle,’ Wall Street might have been disappointed that Fed Chairman Jerome Powell didn’t signal more cuts to come.
U.S. and Chinese trade negotiators also wrapped up their first face-to-face meetings in over two months yesterday. But it seems that the world’s two largest economies are no closer to a meaningful resolution. Still, all three major U.S. indexes bounced back through morning trading Thursday.
Overall, 305 S&P 500 members have already reported their Q2 financial results, with 77% of the Technology sector’s total market cap in the index out.
U.S. chipmaker and telecommunications equipment firm Qualcomm QCOM stock fell after hours Wednesday and was down over 2% Thursday after its quarterly revenue fell nearly 13%. Meanwhile, General Motors GM beat quarterly earnings estimates before the opening bell today. This helped GM stock hit a fresh 52-week high.
Looking ahead, Pinterest PINS, Etsy ETSY, Square SQ, and Motorola MSI are projected to post their quarterly financial results after the closing bell. The episode then closes with a look at why Chegg CHGG is a new Zack Ranks #1 (Strong Buy) stock.
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Etsy, Inc. (ETSY): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
Chegg, Inc. (CHGG): Free Stock Analysis Report
Motorola Solutions, Inc. (MSI): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
General Motors Company (GM): Free Stock Analysis Report
Pinterest, Inc. (PINS): Free Stock Analysis Report
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