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Fool Video: Will the Fed Cut Matter?

By Mac Greer – Updated Apr 5, 2017 at 10:13PM

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Some stocks to consider in the wake of the Fed cut.

The Federal Reserve cut the federal funds rate by 0.5% on Tuesday. As you would expect, businesses that stand to benefit most directly from the Fed cut -- big banks such as Bank of America (NYSE: BAC) and Citigroup (NYSE: C) -- rose on the news. But other stocks seemed to shrug off the rate cut. 

So what will the Fed cut mean for investors? Is the Fed chief making a monetary mountain out of an economic molehill? What will the rate cut mean for housing stocks such as Centex (NYSE: CTX) and NVR (NYSE: NVR)? Should U.S. investors look south to Mexican companies such as Cemex (NYSE: CX) and Grupo Aeroportuario Centro Norte (Nasdaq: OMAB)? Will shares of Yum! Brands (NYSE: YUM) taste better after the latest Fed cut? In this installment of "Fool Video," Motley Fool senior analyst Seth Jayson gives his take.

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Cemex is a Stock Advisor and Global Gains recommendation. Grupo Aeroportuario Centro Norte is a Global Gains recommendation. Starbucks is a Stock Advisor recommendation. Check out either service with a free 30-day trial.

Seth owns shares of Grupo Aeroportuario Centro Norte. Lou owns shares of Cemex and Starbucks. Mac owns shares of Starbucks. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Yum! Brands, Inc. Stock Quote
Yum! Brands, Inc.
YUM
$109.50 (-1.04%) $-1.15
Citigroup Inc. Stock Quote
Citigroup Inc.
C
$42.92 (-3.03%) $-1.34
Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$30.97 (-2.40%) $0.76
CEMEX, S.A.B. de C.V. Stock Quote
CEMEX, S.A.B. de C.V.
CX
$3.31 (-3.92%) $0.14
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Stock Quote
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
OMAB
$52.26 (-2.23%) $-1.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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