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

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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 disappointment and what to expect from Lululemon’s (LULU - Free Report) Q2 earnings. Free Lunch then closes with a look at why Fiserv, Inc. 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 - Free Report) , Micron (MU - Free Report) , and Nvidia (NVDA - Free Report) .

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 - Free Report) and Lyft (LYFT - Free Report) , 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 - Free Report) and Microsoft (MSFT - Free Report) .

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 - Free Report) 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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