Market Rise Expected in Anticipation of Rate Cut

Stocks may move higher this week as Wall Street anticipates the economic boost expected from a likely interest rate cut at the Federal Reserve’s next meeting Aug. 21.

“People are looking forward to a rate cut,” said Dan Rivera, chief investment officer of American Express Asset Management Group’s large-cap growth division. “They’re looking for things to start to improve. The market is telling you that.”

The second-quarter earnings season is coming to a close, but investors say they won’t relax until they see Cisco Systems Inc.’s profit report, expected Tuesday after exchanges close. Consumer products maker Procter & Gamble Co. probably will report quarterly results Tuesday as well.

Wall Street also will scrutinize retailers’ reports for a sign of how well consumer spending is holding up. Catalog and Internet retailer Lands’ End Inc. is expected to report results Wednesday, and trendy casual-clothing seller Abercrombie & Fitch Co. is anticipated to issue a report Thursday.

Wall Street and others also will closely follow economic reports this week. Friday’s report on prices paid in July to factories, farmers and other producers could show that the threat of inflation has dampened. June’s report showed prices dropped 0.4%, and a July decline would give support to Fed policymakers to lower rates.