Published 6:00 AM EDT Sep 22, 2019
U.S. stocks traded slightly higher last week after a mixed Federal Reserve opted to cut interest rates for the second time this year.
Another rate cut
The biggest news came when the Fed cut U.S. interest rates by another 0.25% to a new target rate of between 1.75% and 2%. The move came amid a three-day stretch in which the Fed was forced to carry out an open market operation to pump liquidity into the short-term lending market.
President Donald Trump, who previously called Federal Reserve governors “boneheads” for not cutting U.S. interest rates to zero, tweeted that Fed Chair Jerome Powell has “no guts, no sense, no vision!” following Wednesday’s decision.
Brent crude oil prices eased to $64.57 per barrel to close the week after initially spiking more than 15% to above $69/bbl following a drone attack on Saudi Arabia that disabled more than half of the kingdom’s production.
Trade war in focus
Face-to-face trade talks between U.S. and Chinese deputy trade negotiators resumed Thursday for the first time in nearly two months ahead of high-level negotiations scheduled for October.
House Speaker Nancy Pelosi told CNBC that Trump “had to do something” to hold China accountable for its trade practices, but the U.S. should have taken a multilateral approach and included global allies.
“Trade seems to be back on the table now,” said TD Ameritrade senior trading specialist Shawn Cruz, noting that a solution would push the market higher. “The hands of these governments are being forced a little bit because we are starting to see some weakness on the business investment fronts, so I think there is some pressure on these governments to get this done because it’s starting to hit home.”
On Tuesday, FedEx blamed the trade war for its fiscal first-quarter earnings miss and guidance cut that sent its stock tumbling 9%.
This week, investors will be watching for earnings reports from Jabil and Nike on Tuesday and Accenture and Rite Aid on Thursday.
The forward price-to-earnings ratio of the S&P 500 is currently 17.0, well above its 10-year average of 14.8. Despite the elevated valuation, analysts are expecting a 3.7% decline in S&P 500 earnings in the third quarter, according to FactSet.
In the week ahead, investors will be watching the September Conference Board U.S. Consumer Confidence number and the July Case-Shiller home price index reading expected out on Tuesday. Home prices increased 3.1% in June, down from a 3.3% rise in May.
The Bureau of Economic Analysis will also be reporting any revisions to its 2% estimate for second-quarter U.S. GDP growth on Thursday.
This hospitality company owns a chain of hotels, casinos and resorts. While it found its start in Texas, it has since relocated headquarters to Virginia and expanded to operate at a global level.
It all started in 1919 due to a rather spontaneous change of plans by the founder. On the way to purchasing a bank, he passed by the local hotel, The Mobley. He chose to buy that location instead, thus entering the hospitality industry.
From the beginning, this company found success due to its customer-first mindset. Soon it was expanding beyond this original hotel in Cisco, Texas. Its next major move as a business was its opening of its first hotel with cold running water and air-conditioning in its public rooms.
1949 marked the first time it took steps beyond the United States. It was that year it founded its first Carribean resort. This company claims the now-world famous Piña Colada drink also found its origins there.
Over the course of its history, this company would be responsible for many firsts in the sector, including the title of the first hotel with TVs installed in all guest rooms, first multi-hotel reservations system, first airport hotel and first centralized reservation system using computer technology.
Due to all these innovative methods of improving the customer experience, it was able to become a well-respected brand by the public. With its 2016 opening of a location in Chad, this company reached a global footprint of 100 countries and territories across the world.
Answer: Hilton Worldwide
Benzinga is a financial news a data company headquartered in Detroit.
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