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By Jeremy Glaser and Jason Stipp | 12-18-2015 09:00 AM

Fed Hike: The News That Wasn't

The real story would have been if they hadn't raised rates. Plus, we see value in Oracle, Qualcomm, and FedEx.

Jason Stipp: I'm Jason Stipp for Morningstar. Welcome to The Friday Five, Morningstar's take on five stories in the market this week. Joining me with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: Up first this week, obviously, is the Fed decision. They finally did decide to raise rates, and you say this is really the news story that wasn't news, and that's a good thing.

Glaser: Frankly, there isn't a lot to talk about with this rate increase of 25 basis points, because the Fed had spent so much time getting the market ready, getting investors ready for this shift toward the normalization of monetary policy. The real story would have been if they hadn't raised rates or if there was a big surprise in what they said about the path of rates, and we just didn't see that.

They still expect rates to go up a little bit, to around maybe 1.5% at the end of next year. That implies four increases in 2016. That's a very gradual path. They emphasized that in the press conference as well. They said they are going to be looking at inflation, making sure that employment continues to improve and look better. Really no surprises there.

I think this will help us stop being so focused on the Fed, as they have removed that uncertainty. I think it's one of the reasons the market rallied after the decision, and now we can start looking at more of those fundamentals.

We did publish a lot of content this week about what impact higher rates will have on particularly bond funds and also some other types of investments. We have a landing page with all of that content available.

Stipp: Beauty firm Avon took some steps to shore up its balance sheet this week. What was behind that move?

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