On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into the U.S. Federal Reserve’s newest interest rate cuts, as well as what the central bank might do next. The episode then breaks down why Microsoft MSFT stock surged, before taking a look at the latest from AT&T T and FedEx FDX. We then close with why Skechers SKX stock is a Zacks Rank #1 (Strong Buy) right now.
The Fed on Wednesday officially announced it will cut its benchmark interest rate by 25-basis points for the second time in the past three months to between 1.75% and 2%. Yet, only seven out of 10 Fed officials voted to cut the short-term rates and some, including President Trump, pushed for larger cuts.
Nonetheless, Fed Chairman Jerome Powell has tried to take a more pragmatic approach and won’t commit to any additional cuts. Powell did point to U.S.-China trade war-related uncertainty. But with unemployment near 50-year lows, the central bank seems fine with its current course of action, despite global slowdown fears.
U.S. stocks jumped Thursday, with both the Dow and the S&P 500 up within 1% of their all-time highs. Microsoft stock helped lead the push after the firm announced new plans to return more value to shareholders.
MSFT is one of only two U.S. companies in the $1 trillion market cap club. Plus, shares of Microsoft have crushed all of the so-called FAANG stocks over the last 12 months, which includes Facebook FB, Amazon AMZN, Apple AAPL, Netflix NFLX, and Google GOOGL.
Meanwhile, AT&T stock popped Thursday, after the telecommunications firm said it is looking to possibly split from its DirecTV unit. FedEx, on the other hand, was crushed after it lowered its guidance, citing a weak global economic picture and trade tensions.
Today’s episode of Free Lunch then closes with why Skechers stock is a Zacks Rank #1 (Strong Buy). The footwear and apparel firm looks strong and stands out at the moment compared to industry titans like Nike NKE and Adidas ADDYY.
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Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Facebook, Inc. (FB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report AT&T Inc. (T) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Adidas AG (ADDYY) : Free Stock Analysis Report NIKE, Inc. (NKE) : Free Stock Analysis Report Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research