Is a Dividend Stock Comeback Around the Corner?

Plus: How top bond fund managers are playing Fed rate cuts, Berkshire becomes a $1 trillion stock, why we think Amazon is a buy. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=57264&elqTrackId=d7a82ab61b7d4d60a946bd9e7734bd60&elq=a248fabda81344599b761d6fc4c34f19&elqaid=57264&elqat=1&elqCampaignId=29189&elqak=8AF566D21A42ADACDB8543C842B1C422CF950F8BF5C332EA244A59EF2238F0D09E3F) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Is a Dividend Stock Comeback Around the Corner?]( - [How 3 Top Bond Fund Managers Are Preparing for Fed Rate Cuts]( - [Berkshire Just Crossed $1 Trillion. Is It a Buy?]( - [Nvidia Earnings: No Signs of an AI Slowdown]( - [Why We Think Amazon Stock Is Now a Buy]( - [New 4-Star Stocks]( - [July PCE Report: PCE Inflation Index Up 2.5%, Softer Than Expected]( The clock is counting down to the Federal Reserve’s September meeting, and so far, the coast looks clear for interest rates to start coming down. The latest update was good news on the Fed’s preferred measure of inflation. The July Personal Consumption Expenditures Price Index posted a softer increase than expected. As Morningstar chief US economist Preston Caldwell explains, that should leave room for the Fed to cut rates. The question is: [by how much]( A rate cut will bring a big change for the bond market. Gabe Alpert checks in with [three top bond fund managers]( on how they are positioning for the Fed’s next move. Another big hurdle for the market was Nvidia’s earnings. The semiconductor behemoth has been responsible for a good chunk of the market’s overall gains, and it could have been a real problem [if the company had fallen short of expectations](. While they didn’t blow out forecasts, Nvidia still showed its strength. Check out Morningstar equity strategist [Brian Colello’s take on Nvidia’s earnings](. Elsewhere in the stock market, the bumpy ride continues for many of the Magnificent Seven. Amazon is down 11% in the third quarter. But the good news for investors looking to put money to work is that [Amazon’s stock is now looking cheap](. Speaking of cheap stocks, on the first business day of every week, be on the lookout for our roundup of newly undervalued stocks. This past week, Amazon joined the ranks of 4-star stocks. [See the other two here](. While big-name tech stocks have been struggling, one household name isn’t. Warren Buffett’s Berkshire Hathaway has crossed the $1 trillion market cap line. Is the stock a buy? [Morningstar strategist Greggory Warren offers]( his take. Lastly, Sarah Hansen digs into the prospects for dividend stocks. They’ve been left in the dust by the big tech rally. Are [dividend stocks’ fortunes about to change]( That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [Is a Dividend Stock Comeback Around the Corner?]( [Is a Dividend Stock Comeback Around the Corner?]( After dividend stock strategies lagged the growth stock rally, lower interest rates could benefit them. Sarah Hansen [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [How 3 Top Bond Fund Managers Are Preparing for Fed Rate Cuts]( [How 3 Top Bond Fund Managers Are Preparing for Fed Rate Cuts]( The unknowns include how far long-term yields will fall and the outlook for riskier debt. Gabe Alpert [Why We Think Amazon Stock Is Now a Buy]( [Why We Think Amazon Stock Is Now a Buy]( Amazon stock has slid since earnings, but we see its long-term positive story as intact. Dan Romanoff [Berkshire Just Crossed $1 Trillion. Is It a Buy?]( [Berkshire Just Crossed $1 Trillion. Is It a Buy?]( With the firm’s market cap reaching a record high, here’s what we think of Berkshire stock. Sarah Hansen [New 4-Star Stocks]( [New 4-Star Stocks]( Alphabet and Hewlett Packard are among the stocks that have entered undervalued territory. Bella Albrecht [July PCE Report: PCE Inflation Index Up 2.5%, Softer Than Expected]( [July PCE Report: PCE Inflation Index Up 2.5%, Softer Than Expected]( The PCE Price Index increased 0.2% in July. Tom Lauricella [What’s Happening in the Markets This Week]( [What’s Happening in the Markets This Week]( Zscaler, Nio, and Broadcom are among the companies set to release earnings. Frank Lee [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( With demand for DBMS software changing, here’s what we think of Snowflake stock. Julie Bhusal Sharma [Auto Dealers: 7 Narrow-Moat Companies to Know]( [Auto Dealers: 7 Narrow-Moat Companies to Know]( A fragmented sector continues to slowly consolidate. David Whiston [6 Wide-Moat Companies Positioned to Succeed in the Packaged-Food Industry]( [6 Wide-Moat Companies Positioned to Succeed in the Packaged-Food Industry]( Intangible assets and cost advantages buoy the edge of some packaged-food firms. Erin Lash [10 Stocks the Best Fund Managers Have Been Selling]( [10 Stocks the Best Fund Managers Have Been Selling]( As the stock market rallies, top investors are taking profits in these names. Susan Dziubinski [10 Stocks the Best Fund Managers Have Been Buying]( [10 Stocks the Best Fund Managers Have Been Buying]( Although the market is having a strong 2024, top investors are still finding stocks to invest in. Susan Dziubinski [Why Interest Rate Forecasts Are Usually Wrong]( [Why Interest Rate Forecasts Are Usually Wrong]( Two global asset-allocation experts weigh in on inflation, the economy and the outlook for stocks and bonds. Christine Benz, Amy Arnott [3 Contrarian Investment Strategies Worth Considering Today]( [3 Contrarian Investment Strategies Worth Considering Today]( In a concentrated market, opportunities still exist for investors to cash in while reducing risk. Bryan Armour [3 Dividend-Growth Stocks That a Top-Rated Vanguard Fund Manager Likes]( [3 Dividend-Growth Stocks That a Top-Rated Vanguard Fund Manager Likes]( Add these names to your watchlist of dividend-growth stocks. Susan Dziubinski Recent Earnings [Nvidia: No Signs of an AI Slowdown]( [Okta: Macro Headwinds Continue to Impact Sales Motion Even as Profitability Grows]( [CrowdStrike: Despite Headwinds, We Believe Falcon Is Poised for Long-Term Success]( [Salesforce: Nice Rebound Quarter, With Lots of Excitement Around Virtual Agents]( [Chewy: Retailer Turns a Corner on Profitability and Customer Growth]( [MongoDB: Shares Approaching Our Fair Value Estimate as Management Ups Their Guidance]( [Lululemon: Near-Term Outlook Dims, but Profitability and Underlying Brand Strength Hold]( [Recent Company Earnings]( Discover actionable opportunities today with our earnings coverage and analyst insights. Think Like an Analyst With Morningstar Investor Understand funds and stocks from all angles with Morningstar Investor's powerful—and proven—investment ratings and research. Find and compare securities using our comprehensive valuation and performance metrics and get our continuous, unbiased take on the long-term value of thousands of investment opportunities. Investor is your one-stop shop for making better investment decisions. [Start your free trial today](. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602