On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains breaks down what’s going on between President Trump and the U.S. Federal Reserve. The episode also dives into Home Depot HD and TJX TJX earnings, as part of a broader look at the retail industry amid the ongoing trade war between the U.S. and China. Free Lunch then closes with why Garmin GRMN is a Zacks Rank #1 (Strong Buy) stock right now.
President Trump on Monday called for the Fed to cut interest rates in a big way and criticized Fed chairman Jay Powel for a “horrendous lack of vision.” Despite the tweets, the U.S. central bank might not be ready to slash rates so dramatically. Wall Street will likely get an update soon on what’s next with Powell set to speak this Friday.
Overall, all three major U.S. indexes slipped through Tuesday morning trading. The downturn came after three straight days of gains that helped push indexes back within striking distance of their July records. Despite the larger decline, Home Depot stock popped following its quarterly earnings release, with comparable sales up an impressive 3%. Yet, HD executives provided subdued fiscal year guidance, citing lower lumber prices and possible tariff-related concerns.
Meanwhile, shares of fellow retailer TJX, which owns Home Goods, TJ Max, and other stores, slipped in a sign that investors might be worried about the soon to be rolled out 10% tariffs on a large amount of apparel and footwear imported from China. This week will also see Target TGT, Lowe’s LOW, and other retailers post their quarterly results after Walmart WMT last week proved once again it is ready to take on Amazon AMZN.
This episode of Free Lunch then closes with a look at why GPS navigation and wearable tech power Garmin is a Zacks Rank #1 (Strong Buy) stock.
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Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report The Home Depot, Inc. (HD) : Free Stock Analysis Report Lowe's Companies, Inc. (LOW) : Free Stock Analysis Report Garmin Ltd. (GRMN) : Free Stock Analysis Report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research