Retailers disclose earnings, possible railroad strike, Fed minutes and more: Tuesday's 5 things to know

Retailers disclose earnings, possible railroad strike, Fed minutes and more: Tuesday’s 5 things to know

Here are the key events happening on Tuesday this could have an impact on trade.

RETAILER REVENUES: A busy morning ahead for retail revenue, with Best Buy, Dollar Tree, Dick’s Sporting Goods, Abercrombie & Fitch and Chico’s FAS among the names reported.

Also watch for numbers from medical device maker Medtronic, chipmaker Analog Devices and entertainment company Warner Music Group.

In the afternoon, we’ll hear from high-end department store chain Nordstrom and clothing retailer Guess.

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A handful of tech names will also report: PC and printer maker HP Inc., cloud computing company VMware and design and engineering software maker Autodesk.

Just over 95% of the S&P 500 (481 companies) released Q3 numbers, and the results were mostly ahead of expectations.

Teleprinter Security Last To change To change %
LTRD DOLLAR TREE INC. 165.24 +1.88 +1.15%
SDKs DICK SPORTING GOODS INC. 106.94 -2.15 -1.97%
ANF ABERCROMBIE & FITCH CO. 18.63 -0.15 -0.80%
CHS CHICO’S FAS INC. 7.11 -0.06 -0.84%
MTD PLC MEDTRONIC 82.29 +0.99 +1.22%
ADI ANALOG APPLIANCES INC. 159.24 -2.61 -1.61%
WMG WARNER MUSIC GROUP CORP. 26.98 -0.40 -1.46%
HPQ HP INC. 29.16 -0.32 -1.09%
JWN NORDSTROM INC. 21.27 -0.18 -0.84%
vmw VMWARE INC. 116.77 +0.21 +0.18%
ADSC AUTODESK INC. 206.50 -3.87 -1.84%

RAILWAY STRIKE: An impending strike by railway workers could disrupt some supply chains as early as early December, hampering trade.

Investors will also be watching the shopping season to see how much inflation is weighing on consumers’ purchasing power.

Teleprinter Security Last To change To change %
PC CANADIAN PACIFIC RAILWAY LTD. 79.16 +0.65 +0.83%
CNI Canadian National Railway Company. 124.18 -0.24 -0.19%
CSX CSX CORP. 31.29 +0.41 +1.33%
NSC NORFOLK SOUTH CORP. 249.26 +2.50 +1.01%

RETAIL GROUPS SAY A RAIL STRIKE WILL BE DEVASTATING FOR THE ECONOMY

This April 2, 2021, file photo shows freight train cars and containers at Norfolk Southern Railroad’s Conway Yard in Conway, Pa. (AP Photo/Gene J. Puskar, File) (AP Newsroom)

All of this complicates the Federal Reserve’s balance between raising interest rates and fighting inflation, said Oanda analyst Edward Moya.

“There are going to be some undesirable factors here that will likely force the Fed to stay aggressive,” he said. “And that’s tough on equities.”

STOCK AVOIDANCE: U.S. stocks fell on Monday as investors worried about a rise in COVID-19 infections overseas and the state of the domestic economy ahead of the key holiday season.

The Dow Jones Industrial Average slipped 45.41 points, or 0.1%, to 33,700.28, while the S&P 500 fell 15.40 points, or 0.4%, to 3949.94. The Nasdaq Composite lost 121.55 points, or 1.1%, to 11,024.51.

Investors had hoped that signs of easing of COVID-19 containment measures in China would allow economic growth to resume, also benefiting the global economy.

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a New York Stock Exchange trader speaks

Traders work on the floor of the New York Stock Exchange in New York, Wednesday, November 2, 2022. (AP Photo/Seth Wenig/AP Pictures)

Several Chinese cities have said they will no longer carry out mandatory mass testing and lifted the requirement for residents to present proof of a recent negative test to enter public places.

A rise in COVID-19 infections and the reporting of virus-related deaths for the first time in nearly six months has led investors to fear that China’s normalization may instead be further delayed.

“All eyes are on China,” said Hani Redha, portfolio manager at PineBridge Investments. “Any attempt to reopen is going to be tricky because we know the pattern with these things: you get a spike in cases. We haven’t even really started and there are a lot of cases already.”

WHAT THE FEDERATION SAID: Investors were expecting a quiet week with the Thanksgiving holiday on Thursday.

The biggest event on the economic calendar is Wednesday’s release of the minutes of the Federal Reserve’s latest meeting.

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Fed Chairman Jerome Powell speaking at a podium

Jerome Powell, Chairman of the Board of the Federal Reserve. The minutes of the last Federal Reserve meeting will be released on Wednesday. (AP Photo/Jose Luis Magana/Associated Press)

Investors will be looking for clues on Fed officials’ view of the pace of inflation and whether that will prompt the central bank to slow the pace of interest rate hikes.

“It’s very important for market participants,” said AvaTrade analyst Naeem Aslam.

CRYPTO FRAUD SYSTEM: The FBI and Estonian police arrested two Estonian citizens on Sunday for their alleged involvement in a $575 million cryptocurrency fraud scheme.

Sergei Potapenko and Ivan Turõgin, both 37, are charged with conspiracy to commit wire fraud, 16 counts of wire fraud and one count of conspiracy to launder money.

Prosecutors say the men persuaded the victims to enter into fraudulent equipment rental contracts with the defendants’ cryptocurrency mining service, HashFlare. They also tricked the victims into investing in a fake virtual currency bank called Polybius Bank, which never paid dividends.

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Illustration of various cryptocurrencies

Representations of cryptocurrencies are visible in this illustration. (REUTERS/Dado Ruvic/Illustration/Reuters Photos)

The indictment accuses Potapenko and Turõgin of conspiring to launder their proceeds of crime using shell companies, fake contracts and fake invoices. The money laundering plot allegedly involved at least 75 real estate properties, six luxury vehicles, cryptocurrency wallets and thousands of cryptocurrency mining machines.

“The size and scope of the alleged scheme is truly staggering,” said Assistant Attorney General Kenneth Polite Jr. of the Justice Department’s Criminal Division. “Authorities in the United States and Estonia are working to seize and retain these assets and profit from these crimes.”

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The FBI is investigating the case.

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