Retail earnings, Fed minutes, impeachment hearings: 3 things to watch for Wednesday

CNBC 2 weeks ago

Here are the most important things to know about Wednesday before you hit the door.

1. Target, Lowe's earnings on deck

Retail earnings are kicking into high gear with Target and Lowe's reporting on Wednesday morning. Their earnings will follow Home Depot and Kohl's disappointing results on Tuesday that caused their stocks to tank.

Kohl's quarterly earnings and sales missed estimates due to an "increasingly competitive promotional environment" and the retailer also slashed its profit outlook for the year. Home Depot cut its 2019 sales forecast and also said it expects same-store sales to be lower than expected this year. Its quarterly sales fell short of expectations while earnings beat.

Wall Street analysts estimate Target earned $1.19 per share in the third quarter, a small increase from an EPS of $1.09 from the same quarter a year ago, according to FactSet. The consensus for Lowe's quarterly earnings is $1.35 per share, compared to an EPS of $1.04 in the third quarter of 2018, according to FactSet.

Macy's is also set to report.

2. How divided is the Fed?

The Federal Reserve is set to release the minutes from its latest policy meeting. The central bank cut interest rates for the third time this year at its October meeting. Fed Chair Jerome Powell indicated the moves to ease policy could be nearing a pause, saying central bank officials "see the current stance of monetary policy as likely to remain appropriate."

Within the Fed, there has been disagreement about whether additional cuts are needed. Regional presidents Esther George of Kansas City and Eric Rosengren of Boston again voted against a reduction. Investors will look to the minutes for clues about how divided the Fed is on its policy.

"For the first time in at least ten years we've seen two or more dissents in three straight meetings," Ian Lyngan, BMO's head of U.S. rates, said in a note on Tuesday. "In this context, the Minutes on Wednesday will be informative as to how widespread the support for the current stance of policy actually is, or isn't."

3. Impeachment hearings heat up

The House Intelligence Committee's public hearings in the impeachment probe into President Donald Trump's Ukraine dealings resume on Thursday.

Three witnesses are scheduled to testify in two separate hearings: Gordon Sondland, ambassador to the European Union, Laura Cooper, deputy assistant secretary of Defense, and David Hale, undersecretary of State for political affairs.

Former U.S. special envoy for Ukraine Kurt Volker and National Security Council official Tim Morrison testified on Tuesday. Volker, Energy Sec. Rick Perry and Sondland, have been referred to as the "three amigos" in prior closed-door testimony. Trump allegedly directed Volker and Sondland to work with Rudy Giuliani, his personal lawyer, to persuade Ukraine to investigate former Vice President Joe Biden and his son Hunter.

Major events (all times ET):

7:00 a.m. MBA Weekly Mortgage Applications Survey

10:30 a.m. EIA Weekly Petroleum Status Report

2:00 p.m. Federal Open Market Committee meeting minutes

Major earnings:

Target (before the bell)

Lowe's (before the bell)

L Brands (after the bell)

Source link
Read also:
Forbes › Finance › 2 weeks ago
The markets are starting the week at record highs and there’s more positive talk about trade negotiations. However, it looks like today might feature a dull kind of trading as many await retail earnings and Fed minutes due over the next few days.
CNBC › 1 month ago
Investors will brace for a slew of market-moving events on Wednesday with the Fed's rate decision, key GDP reading and earnings from Apple and Facebook.
CNBC › 3 weeks ago
We'll get an update on trade, Aramco is set to price its IPO, and a bunch of retail names will report earnings.
Forbes › Finance › 2 weeks ago
My Earnings Distortion Scorecard reveals this stock has significantly understated earnings and investors should look to buy this stock ahead of its earnings report.
CNBC › 1 week ago
We'll get economic data including durable goods and pending homes sales, the Federal Reserve's Beige Book and Deere earnings on Wednesday.
CNBC › Finance › 2 weeks ago
Retail earnings are kicking into high gear, and one market watcher has Home Depot, Lowe's and Target stocks top of mind.
USA Today › Politics › 1 week ago
A week of impeachment hearings is a lot of information. Five minutes will get you caught up on all things Trump impeachment inquiry.
CNBC › 2 weeks ago
The Fed says it has no plans to cut interest rates, but market pros hope minutes from the last Fed meeting contain some clues about policy.
Business Insider › Finance › 3 weeks ago
Impeachment hearings began in Washington D.C. Wednesday and continue throughout November. Amid the hearings, the stock market closed at a record high on both Wednesday and Thursday fueled by strong earnings. Money managers are split on what impact the...
Forbes › Finance › 1 month ago
Trefis, in its interactive dashboard Why Is HSBC Planning To Exit Its Retail Banking Operations In France?, analyzes the contribution of the French retail banking arm to HSBC’s total retail banking business and details the rationale behind the bank...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google