Grab These 4 Discretionary Stocks as Trump Calls for More Rate Cuts

Core Viewpoint - Wall Street has resumed its rally following Donald Trump's new term as President, with investors optimistic about potential economic policy changes that could drive major indexes to all-time highs [1][2]. Economic Policy and Market Reaction - Trump's dovish comments regarding rate cuts and oil prices have bolstered investor confidence, leading to a rally in stocks, with the S&P 500 closing at an all-time high of 6,118.71 points [2][5]. - The Federal Reserve has cut interest rates by 100 basis points since September, bringing the benchmark policy rate to 4.25-4.5%, which has positively impacted market sentiment and economic activity [6][7]. Stock Performance and Recommendations - The Consumer Discretionary Select Sector SPDR (XLY) has gained 33.2% over the past year and 22.4% in the last six months, outperforming the S&P 500 index [10]. - Discretionary stocks such as Dolby Laboratories, Carnival Corporation, Netflix, and American Outdoor Brands are highlighted as lucrative investment opportunities, all carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [2][3]. Company-Specific Insights - Dolby Laboratories, Inc.: Expected earnings growth rate of 6.9% for the current year, with a Zacks Consensus Estimate improvement of 2% over the past 60 days [11][12]. - Carnival Corporation & plc: Expected earnings growth rate of 24.7% for the current year, with a Zacks Consensus Estimate improvement of 6.6% over the last 60 days [13][14]. - Netflix, Inc.: Expected earnings growth rate of 19.6% for the current year, with a Zacks Consensus Estimate improvement of 0.3% over the past 60 days [17][18]. - American Outdoor Brands, Inc.: Expected earnings growth rate of 75% for the current year, with a Zacks Consensus Estimate improvement of 9.8% over the past 60 days [20][21].