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Fed Updates, Manufacturing Worries, Target Shines & Buy Alibaba Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains breaks down some of the recent news from the Federal Reserve as recession worries heat up. The episode also dives into some worrisome manufacturing news, along with retail updates, including Target’s (TGT - Free Report) impressive report. We then close with a look at why Alibaba (BABA - Free Report) is a Zacks Rank #1 (Strong Buy) stock.

All three major U.S. indexes slipped Thursday after initially opening higher. The fall seemed to come after Philadelphia Fed President Patrick Harker told CNBC Thursday that he doesn’t see the case for additional rate cuts. These comments followed Wednesday’s release of the Fed’s minutes from their late July meetings.

Market expectations for another rate cut in September still rest at roughly 94% at the moment. And Wall Street and investors might not have to wait long for a clearer picture, with Fed Chairman Jay Powell set to speak Friday.

Meanwhile, the manufacturing sector flashed a warning sign, with the U.S. manufacturing PMI coming in at 49.9 in August. The rate fell below the neutral threshold of 50 for the first time since September 2009, according to Thursday’s IHS Markit report.

Despite some broader worries, Target’s comparable sales climbed 3.4%, as its digital and same-day fulfillment services helped prove once again it is ready to thrive in the Amazon (AMZN - Free Report) age, alongside Walmart (WMT - Free Report) . Shares of Dick’s Sporting Goods (DKS - Free Report) and Nordstrom (JWN - Free Report) also jumped, but these two retailers show less promise, especially the department store.

Moving on, Salesforce (CRM - Free Report) is set to report its quarterly results to after the closing bell, with earnings projected to fall and revenue expected to expand at a slower pace. This episode of Free Lunch then closes with a look at why Chinese e-commerce power Alibaba is a Zacks Rank #1 (Strong Buy) stock.

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