Fed's Rate Outlook and Balance Sheet Views In Focus

Barry Adams
29 Oct, 2025
New York City

 Benchmark indexes in New York rested near the flatline ahead of the Federal Reserve's rate actions. 

The S&P 500 index increased 0.01%, and the tech-heavy Nasdaq Composite edged up 0.02% ahead of the widely anticipated Fed's rate cut of 25 basis points.  

Investors are hoping that the central bank will signal a possible rate cut at the end of the next policy meeting in December. 

The government's shutdown is limiting data visibility, hampering the Fed's ability to decipher movements in the labor market, consumer spending, and industrial activities. 

On the international trade front, US-China negotiators are likely to strike a framework deal that could recede elevated tensions, resume the flow of rare-earth material shipments, and finalize the sale of TikTok's US assets. 

 

U.S. Stock Movers 

CVS Health Corp. increased 0.8% to $82.64, and the pharmaceutical retailer hiked its outlook and reported better-than-expected third-quarter results. 

Total revenues rose 7.8% to $102.9 billion from $95.4 billion, net income swung to a loss of $3.99 billion from a profit of $71 million, and diluted earnings per share turned to a loss of $3.13 compared to a profit of 7 cents a year ago.  

The third quarter GAAP diluted loss per share of $3.13 reflects a $5.7 billion goodwill impairment charge related to the Health Care Delivery reporting unit, partially offset by a gain of $483 million on the deconsolidation of Omnicare, LLC in connection with the initiation of Omnicare's voluntary Chapter 11 proceedings. 

Adjusted earnings per share, which excludes certain items and transactions, increased to $1.60 from $1.09 in the prior year primarily due to improved adjusted operating income in the Health Care Benefits segment.

The company raised its full-year 2025 guidance range to between $6.55 and $6.65 from the previous range between $6.30 and $6.40. 

CVS estimated 2025 GAAP diluted loss per share to range between 34 cents and 24 cents from the previous estimated profit range between $3.84 and $3.94.  

Seagate Technology Holdings PLC increased 6.7% to $238.30, and the data storage company reported sharply higher results in the fiscal first quarter ending on October 3. 

Revenue increased to $2.6 billion from $2.2 billion, net income advanced to $549 million from $305 million, and diluted earnings per share rose to $2.43 from $1.41 a year ago. 

The company declared a cash dividend of 74 cents per share, payable on January 9, 2026, to investors on record on December 24, 2025. 

The company estimated fiscal second quarter revenue of $2.7 billion, with a band of $100 million, and adjusted earnings per share of $2.75, with a band of 20 cents. 

Visa Inc. increased 1% to $347.21, and the payment processor reported better-than-expected fiscal fourth-quarter results. 

Revenue increased 12% to $10.7 billion, net income decreased 4% to $5.1 billion, and diluted earnings per share eased 1% to $2.62. 

Payment volume rose 9%, driven by a 12% rise in cross-border volume, and processed transactions advanced 10% from a year ago.