Today is the Federal Reserve interest rate decision day, with expectations for rates to remain unchanged. Chairman Jerome Powell faces pressure from President Trump post-decision. Investors await signals for a rate cut in September, with focus on the upcoming Jackson Hole Economic Symposium. Morgan Stanley’s Michael Gapen predicts no rate cuts this year.

Meanwhile, markets await earnings reports from Microsoft and Meta after market close. Expectations are high following strong earnings from Alphabet, ServiceNow, and Netflix. Starbucks shares rose despite a challenging earnings report, reflecting CEO Brian Niccol’s restructuring efforts and investment period impact.

Starbucks’ operating profit margins declined in every business segment, leading to a 46% drop in EPS. Despite no guidance, Niccol remains optimistic about future initiatives, including increased labor investments and potential peak operating margins. Analysts, like Bernstein’s Danilo Gargiulo, maintain an Outperform rating on Starbucks shares.

Investors are optimistic about Starbucks’ recovery under Niccol’s leadership, despite the high valuation. Niccol’s track record at Taco Bell and Chipotle adds to the confidence in his abilities. However, uncertainties remain, including the timing of a business turnaround, potential impact of high tariffs on coffee beans, and cautious US consumer behavior.

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Read more at Yahoo Finance: Starbucks CEO Brian Niccol promises a return to glory days: Opening Bid top takeaway