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Stocks can become interesting once the Fed cuts interest rates



The market is excited by a fall in rates of nearly two months.

This rally may continue after the Fed's decision. Lower interest rates make loans cheaper for companies that help the bottom line and boost the stock market. Expectations for a quarter percent reduction are slightly below 80% on Friday and the remaining odd 20% forecast a half-point cut.

But does the US economy need a push?

The current economic growth cycle is over a decade, and the more losing monetary policy on the part of the Fed can last longer. America's economy is not exactly on the brink of collapse, whether or not the Fed cuts rates. But in the first half of 2019, production showed a certain weakness and business investment was muted, as companies were concerned about the development of the trade front. On top of that, inflationary pressure remains low.

But American consumers continue to spend. Consumer sentiment remains stable, confirmed by Friday's stronger-than-expected second-quarter GDP report.

With a reduction in interest rates ̵

1; the first since 2008 – the prices will be fully focused, the market will focus on the next. With a limited amount of economic data to assess the state of the economy between meetings in July and September, the central bank may hold another cut in interest rates until later in the year. The market censuses another decline before the end of 2019.

Expectations for interest rate cuts in September, October and December are 100%, according to CME's FedWatch.

Another way the US economy can boost: Ending the war.

"If tariffs are set, this will serve to further reduce the juice rate on the market," says JJ Kinahan, chief strategist at TD Ameritrade

Although the United States and China have agreed to customs armistice, the commercial battle remains unresolved. This weighs the confidence of the business and the amount that companies invest. 2. Apple's profit: Apple will report its quarterly earnings on Tuesday and hopes to prove to investors that they can get out of their trouble with China. AAPL ) warned investors in January that sales of the iPhone were affected by the slowdown in the Chinese economy and the continuing trade war. But in the last quarter, CEO Tim Cook said the worst could come to an end as Apple saw signs of improvement in the Chinese market. Cook said he was encouraged by improved China-US trade dialogue and a positive customer response to lower prices in Asia.

Wall Street analysts are divided on whether Apple can turn its fortune on the iPhone. Jun Jang, a Chinese analyst at Rosenblatt Securities, downgraded Apple earlier this month, predicting that iPhone XS will become "one of the worst-selling iPhone models in Apple's history."
Despite Cook's optimism, the administration Trump can raise tariffs for Apple products in the near future. President Trump trumps on Friday that if his administration continues with his new round of import levies on Chinese goods, he will refuse to release Apple to pay parts for the new Mac Pro, which Apple reportedly will do in China. Apple produces the current version of Mac Pro in Texas. 3. GE's profits: General Electric's waste power continues to reduce the company's profits, and GE burns with money. But investors know this until now. They hope GE will continue to show progress in its turn. Despite the prevailing profit, GE GE GE ) adheres to its guidelines for 2019 for industrial free cash flow throughout the year. But GE faces a new threat: Boeing ( BA ) 737 Max Crisis.
Boeing said last week he was preparing to shut down the 737 Max production in case he does not get approval to fly the grounded aircraft again this year. This would serve as a failure for GE, which makes jet engines for the 737 Max.

GE will report earnings on Wednesday.

4. Work Report: The US Labor Statistics Bureau will publish its report on jobs in July on Friday.

Economists expect the US economy to add 160,000 jobs in July, and they predict that the unemployment rate has fallen to 3.6%.

The American economy added 224,000 jobs in June, a strong return to the labor market after the disappointing May [19659006] 5. Expect this week: Monday Beyond the Meat UA ] S S S and Procter & Gamble ( PG ) revenue reporting.
Wednesday – decision on the rate of the federal rate; GE, TAP )
and [19459109] Qualcomm [19659013] ( (19459011) ] General Motors (] VZ ] [19459109] Berkshire Hathaway ( BRKA ) Reported Revenue

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