The market has been enthusiastic about an interest rate cut for almost two months.
That rally could continue after the Fed decision. Lower interest rates make borrowing cheaper for companies, which helps businesses bottom lines and increases the stock market. The expectations for a quarter-cut interest rate cut were slightly below 80% on Friday, while the remaining rare 20% predicted a cut of half-points.
But does the US economy need a boost?
The current economic growth cycle is ten years old, and with looser Fed policy, it can continue longer. America's economy is not exactly on the brink of collapse whether and by how much the Fed cuts prices. But in the first half of 201
9, the industry showed some weakness, and business investments were subdued when companies worried about developments on the trade front. On top of that, inflationary pressures have remained low.
But US consumers continued to use. Consumer sentiment remains solid, confirmed by Friday's stronger than expected second quarter GDP report.
With an interest rate cut – the first since 2008 – fully priced, the market's attention will turn to what's going on. With only a limited amount of financial data to assess the state of the economy between the Fed meetings in July and September, the central bank could hold back on a new rate cut until later this year. The market rates in yet another cut before the end of 2019.
Expectations of interest rate cuts in September, October and December are 100%, according to the CME FedWatch tool.
Another way the US economy can get a boost: To end the commercial war.
"If the tariffs are settled that will serve as a new interest rate cut in the form of juice to the market," said JJ Kinahan, chief strategist at TD Ameritrade.
Although the United States and China have agreed on a Customs Weapon, the trade battle remains unresolved. It weighs on business confidence and the amount companies invest.
2. Apple Revenue: Apple will report quarterly earnings on Tuesday, and they hope to prove to investors that they can move beyond China issues.
Apple ( AAPL ) warned investors in January that the iPhone sales had been wounded by the decline in China's economy and an ongoing trade war. But last quarter, CEO Tim Cook signaled that the worst might be when Apple sees signs of improvement in the Chinese market. Cook said he was encouraged by improved trade dialogue between China and the United States and customers' positive response to lowering Asia prices.
Wall Street analysts are divided on whether Apple can turn its iPhone fortunes. Jun Zhang, China analyst at Rosenblatt Securities, downgraded Apple earlier this month and predicted that iPhone XS will run as "one of the best-selling iPhone models in the history of Apple."
Despite Cook's optimism, Trump administration could raise tariffs on Apple's products in the near future. President Trump tweeted Friday that if his administration goes ahead with his new round of import duties for Chinese goods, he will refuse to exempt Apple from paying tariffs for parts for the new Mac Pro, which Apple is alleged to do in China. Apple produces the current version of Mac Pro in Texas.
3. GE Earnings: General Electric's downturn division continues to pull down the company's profits and GE burns through cash. But investors know it now. They hope GE can continue to demonstrate progress in the turnaround.
Despite the tumbling of revenue, GE ( GE ) has stood by its guidance in 2019 for industrial free cash flow throughout the year. But GE faces a new threat: Boeing ( BA ) 737 The Max crisis.
Last week, Boeing said it is preparing for a 737 Max production shutdown in case it does not receive approval to reschedule the grounded aircraft this year. It will serve as a setback for GE, which makes jet engines for 737 Max.
GE will report on income Wednesday.
4. Job Report: The US Labor Statistics Agency will publish its July report on Friday.
Economists expect the US economy to bring in 160,000 jobs in July, and they predict that unemployment fell to 3.6%.
The US economy spent 224,000 jobs in June, a strong comeback for the labor market after a disappointing May.  5. Comes this week:
– Beyond Meat ( BYND )
reports revenue Tuesday
– Apple , S
) Mondelez ( MDLZ ) Under Armor ( UA ]
and Procter & Gamble ( PG )
earnings reports. Wednesday
– Fed rate decision; GE, Occidental Petroleum ( OXY ) Molson Coors ( TAP )
and Qualcomm  ( ] QCOM )
revenue reports Thursday
– General Motors ( GM ) Dunkin & # 39; ( DNKN )