On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains discusses the U.S. Federal Reserve’s interest rate cut that hopes to help the U.S. economy combat the impact of the coronavirus, as it continues to spread outside of China. We also touch on some Apple (AAPL - Free Report) news and Target’s (TGT - Free Report) earnings. The episode closes with a look at why Lyft is a Zacks Rank #1 (Strong Buy) stock right now.
The Fed announced Tuesday that it cut its benchmark interest rate by half a percentage point, to between 1% and 1.25%. The move comes as the yield on the 10-year U.S. Treasury note sat at historic lows amid the coronavirus market correction that saw Wall Street jump into safe haven assets.
Meanwhile, the Dow, the S&P 500, and the Nasdaq all fell over 1.5% through morning trading Monday. Uncertainty looks poised to remain and the Organization for Economic Cooperation and Development on Monday lowered its “best case” scenario for the global economy.
The number of coronavirus infections in the U.S. is now up to 106, as the spread outside of mainland China from South Korea to Italy continues. And the CDC has called for businesses, schools, and people to prepare for the continued spread in the U.S.
Moving on, Apple said it agreed to pay as much as $500 million to settle a class-action lawsuit, and one of its main iPhone assemblers, Foxconn, updated when it expects work to return to normal in China.
Target stock fell nearly 4%, even though it topped our quarterly earnings estimates. This might put pressure on fellow retail giants Costco (COST - Free Report) and Kroger (KR - Free Report) later this week.
The episode then ends with why Lyft stock is a Zacks Rank #1 (Strong Buy) at the moment. The ride-hailing stock is trading at under $40 per share and it is racing toward profitability alongside Uber (UBER - Free Report) .
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