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Coronavirus Volatility, Fed's Next Move & Buy this Soaring Medical Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into Thursday’s market downturn that continues the coronavirus volatility. We then see what the U.S. Federal Reserve might do next, as well as what’s going on with stocks such as United Airlines (UAL - Free Report) , Kroger (KR - Free Report) , and Netflix (NFLX - Free Report) . The episode then closes with a look at why ResMed (RMD - Free Report) is a Zacks Rank #1 (Strong Buy) stock.

The Dow, the S&P 500, and the Nasdaq all fell in morning trading Thursday, as the market’s coronavirus-based volatility continues. Stocks climbed both Monday and Wednesday, but fell Tuesday and Thursday as coronavirus cases spread in the U.S. and elsewhere.

With this in mind, U.S. lawmakers passed an $8 billion-emergency spending package Wednesday. This came after the Fed announced that it cut its benchmark interest rate by half a percentage point. And if recent history is any guide, another rate cut could be coming.

Meanwhile, Kroger (KR - Free Report) stock climbed to new 52-week highs, after it topped our Q4 earnings and revenue estimates. Now the market will turn its attention to Costco (COST - Free Report) after the closing bell.

United Airlines stock fell over 10% after it said it would cut capacity amid a slowdown in air travel. Other travel stocks such as American Airlines (AAL - Free Report) , Wynn Resorts (WYNN - Free Report) , Royal Caribbean (RCL - Free Report) , Expedia (EXPE - Free Report) , and others all fell as well.

Another company, Netflix, has quietly surged during the downturn.

We then close the episode with a look into why ResMed is a Zacks Rank #1 (Strong Buy) stock, within a strong Medical – Products market.

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