A September interest rate cut looks likely after the latest Fed minutes and remarks
Wall Street spent the week on the edge of its seat, as investors awaited the meeting minutes from the Federal Reserve’s July assembly. The results were exactly what traders wanted to see, with a rate cut in September becoming more certain. Along the way, the S&P 500 Index (SPX) and Nasdaq Composite (IXIC) scored eight-straight daily wins, while the Dow won five consecutive sessions.
While traders awaited Fed Chair Jerome Powell’s commentary at the Jackson Hole Economic Symposium on Friday, the Democratic National Convention (DNC) got underway. Vice President Kamala Harris was officially tapped as the Democratic party’s presidential pick for the 2024 election. Ultimately, Powell’s comments gave the broader market a end-of-the-week boost, putting all three major indexes on track for solid weekly wins.
Retail Earnings Show Where Consumers are Spending
A host of retail names stepped into the earnings confessional this week, and their reports help gauge how tight consumers are keeping their purse strings. TJX Companies (TJX) saw its shares hit record highs after a big quarterly win. Macy’s (M), Target (TGT), and Urban Outfitters (URBN) made outsized moved following their respective results. Perhaps one of the bigger surprises of the week, at-home fitness equipment retailer Peloton (PTON) achieved sales grow for the first time in more than two years.
Analyst Notes and Other Buzzy Headlines
Wall Street’s major brokerage firms were busy dishing out notes as the summer season begins to wind down. Roku (ROKU) is currently staring down its best day of the year after an upgrade at Guggenheim. JMP Securities praised Warby Parker’s (WRBY) growth potential, while Williams Trading upgraded Crocs (CROX) after the footwear maker inked a deal with A-list actress Sydney Sweeney.
Outside of the analyst circle, Walmart (WMT) confirmed the sale of its stake in JD.com (JD), Warren Buffett’s Berkshire Hathaway (BRK) continued to dump shares of Bank of America (BAC), and there was an update for the Alaska Air (ALK) and Hawaiian Holdings (HA) merger talks.
Looking Ahead: Big Week of Inflation Data and Earnings
Looking ahead, the Fed’s favorite inflation gauge, the personal consumption expenditures (PCE) price index, is slated for release alongside earnings from major tech and retail names. Meanwhile, Schaeffer’s V.P. of Research Todd Salamone took a look at the recent surge in optimism surrounding the S&P 500 amid a string of economic wins.