On this week’s episode of Tape Talk, Quint and Daniel discuss this week’s news of tariff fallout hitting the industrial sector and headlines around the upcoming FOMC meeting.
In their earnings report this week, industrial giant Fastenal reported negative impacts of the recent trade war between the US and China with both top-line revenue and bottom-line earnings coming in under expectations. This underperformance combined with increased income tax costs had investors selling the name aggressively. However, Quint and Daniel break down what might be an opportunity for investors here.
Cuts Baked In
At this point the market, as represented by interest rate futures, are baking in 100% chance that the Federal Reserve cuts interest rates at their FOMC meeting this month. What Quint and Daniel find interesting about this move is that the economy overall is not in bad shape here which leads to the discussion, “why cut?”