To no one’s surprise, the Federal Reserve on Wednesday announced it would be raising interest rates for the sixth time since late 2015, lifting the benchmark to a target of 1.5% to 1.75%. This move is geared towards keeping inflation at bay as the economy continues to accelerate. Stocks were mixed on the day as investors anticipated and then reacted to the news, with headlines from the likes of FedEx (FDX – Free Report) and Tesla (TSLA – Free Report) also grabbing attention.
Dow: 24,681.90 / -45.37 / -0.2%
Nasdaq: 7,345.28 / -19.02 / -0.3%
S&P 500: 2,711.93 / -5.01 / -0.2%
Zacks Rank #1 (Strong Buy) Top Movers
With the Fed set to raise rates for the first time this year, expect financials, technology and home improvement suppliers to benefit. Home builders and utility players, on the other hand, could lose from the Fed’s rate decision.
FedEx just released its third-quarter financial results, posting adjusted earnings of $3.72 per share and revenues of $16.5 billion.
Shares of Tesla rose over 2.5% in morning trading ahead of the company’s vote on a relatively unprecedented compensation package for CEO Elon Musk.
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Will You Make a Fortune on the Shift to Electric Cars?
Here’s another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It’s not the one you think.