Stocks are at record highs but the market will face its moment of truth in a busy week ahead. Despite recent signs of a solid U.S. economy, the Federal Reserve is expected to cut short-term interest rates for the first time in over a decade this week. The Federal Open Market Committee kicks off its two-day policy meeting Tuesday, and Chairman Powell will hold a press conference on Wednesday following the policy decision.
Starbucks the Seattle based coffee giants stock jumped 8.9% after the company announced earnings and revenue that exceeded expectations. Starbucks posted earnings per share of 78 cents on revenue of $6.82 billion. Same-store sales, a key metric for restaurants and retailers, rose 6% to beat expectations.
Twitter shares jumped 8.9% after the company announced better-than-expected second-quarter earnings and revenue Friday morning. The company made 20 cents per share on $841 million in revenue, topping estimates of earnings per share of 19 cents. Twitter increased ad revenue by 21% year over year.
Negotiators for the U.S. and China will face off in Shanghai this coming week in yet another attempt to piece together a trade accord, amid considerably lowered expectations for the kind of sweeping deal that appeared within reach this spring. People close to the talks say a major breakthrough is unlikely on points that led to negotiations breaking down in early May. That includes the U.S. insistence that China commit to legal changes to protect intellectual property and abandon state subsidies to business, and Beijing’s demands that the U.S. drop all tariffs as a condition for a deal.
With Northwest Quadrant Wealth Management, I'm Tyler Simones