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Trade Talks, Rate Cuts, Lululemon Preview & Buy Fiserv Stock - Free Lunch

Benjamin Rains

On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains discusses the latest U.S. and China trade war updates after the two sides agreed to restart talks.

The episode then turns to the U.S. Federal Reserve’s next round of projected rate cuts, along with a look at Slack’s WORK disappointment and what to expect from Lululemon’s LULU Q2 earnings. Free Lunch then closes with a look at why Fiserv, Inc. FISV is a Zacks Rank #1 (Strong Buy) stock right now.

Global markets surged Thursday after news broke late last night that the U.S. and China are set to head back to the negotiating table in early October. There isn’t much hope for a resolution, and Wall Street has heard this story far too many times. Nonetheless, all three major U.S. indexes jumped over 1% in morning trading, driven by semiconductor firms such as Intel INTC, Micron MU, and Nvidia NVDA.

New reports now suggest that the Fed is set to cut its benchmark interest rate by another quarter percent at its next meeting. Many, including President Trump, had called for a much larger cut. Meanwhile, the yield on the 10-year U.S. Treasury note fell as low 1.45% Wednesday as investors jumped into one of the world’s safest assets.  

Wall Street also voiced their disappointment in Slack’s Q2 financial results. WORK stock has fallen in its early days, similar to Uber UBER and Lyft LYFT, as the work-focused communication tech firm finds it hard to please investors. Slack is still one to watch as it tries to claw its way into an industry dominated by the likes of Google GOOGL and Microsoft MSFT.

Looking ahead, Lululemon is one of the last major names left to report its Q2 results, which are due out after the closing bell Thursday. Shares of the athleisure apparel retailer have soared 54% in 2019 to crush Nike NKE and the market.

Thursday’s episode of Free Lunch then closes with a look at why Fiserv is a Zacks Rank #1 (Strong Buy) stock.

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Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Micron Technology, Inc. (MU) : Free Stock Analysis Report
Fiserv, Inc. (FISV) : Free Stock Analysis Report
Lyft, Inc. (LYFT) : Free Stock Analysis Report
Slack Technologies, Inc. (WORK) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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