Weekly Wrap: Fed Learned Its Lesson; Unraveling Earnings Disappointments

The Fed's meeting was the main event this week, as it held rates steady and confirmed it will begin its balance sheet normalization process next month.

As Northern Trust's Carl Tannenbaum explained, the small market reaction to this news is a sign that the Fed really did learn its lesson from the taper tantrum and that it prepared investors for the changes it plans to make.

Even with these first steps toward a more normal monetary policy, we still expect the central bank to move slowly.

In earnings,

The market may have been disappointed with

The company is seeing strong demand across each of its flagship products, and Creative Cloud continues to attract both legacy Creative Suite users and net new adopters to the platform. Although guidance was relatively in line with our expectations, we continue to view Adobe as one of the highest-quality names in software, and we are maintaining our wide moat rating.

… we view the mid- to high-single-digit decline in the stock price as creating an interesting opportunity for long-term shareholders (particularly those with a bent toward income, given its dividend yields around 4%), with shares now trading at more than a 10% discount to our $58 fair value estimate, which remains in place.

As the hurricane cleanup continues in Texas and Florida, we asked our housing and building materials analysts to assess the impact on the sectors they cover.

Morningstar FundInvestor celebrates its 25th anniversary this month, and to commemorate the occasion a group of former editors and publishers shared where they see the fund industry going over the next 25 years.