Here are the main events taking place on Wednesday this could have an impact on trade.
NORDSTROM RESULTS: Shares fell more than 9% in extended trading after the retailer cut its full-year profit forecast on Tuesday, signaling that steep discounts on obsolete inventory, coupled with higher operating costs and pressure on the supply chain, compress the company’s profit margins.
Profit margins for global fashion retailers have been hurt by rising raw material and labor costs, coupled with supply chain disruptions, which have been further exacerbated by the ongoing conflict in Ukraine .
The company expects earnings for fiscal 2022 to be between $2.13 and $2.43 per share, down from a previous guidance of $2.45 to $2.75.
RETAIL GROUPS SAY A RAIL STRIKE WILL BE DEVASTATING FOR THE ECONOMY
Nordstrom reported a net loss of $20 million, or 13 cents per share, for the quarter ended Oct. 29, compared with profit of $64 million, or 39 cents per share, a year earlier.
The company’s total revenue fell to $3.55 billion in the third quarter from $3.64 billion a year earlier, but beat analysts’ expectations of $3.47 billion, according to data from Refinitiv.
However, the company reaffirmed its guidance for full-year revenue and adjusted earnings.
HP SAYS IT WILL CUT WORKFORCE FROM 4,000 TO 6,000 BY THE END OF FY2025
HP JOBS: Shares gained 2% in extended trading after the company announced job cuts and better-than-expected quarterly results.
The information technology company plans to reduce its gross global workforce by approximately 4,000 to 6,000 employees. These actions are expected to be completed by the end of fiscal 2025.
Fiscal fourth quarter revenue fell to $14.8 billion; the expectation was $14.73 billion.
Non-GAAP net income was 85 cents, beating the estimate of 84 cents.
AUTODESK FORECAST: The shares traded down 9% in extended trading. The software maker lowered its forecast for the full year.
The company now expects billing growth to rise 16% to 18%, compared to the previous forecast of 18% to 21%.
Revenue should grow by 14% versus 14%-15%.
Non-GAAP earnings per share are expected between $6.56 and $6.62, down from $6.52 and $6.71.
Total fiscal third-quarter revenue rose 14% to $1.280 billion from an estimate of $1.281 billion.
Non-GAAP diluted earnings per share for the three months ended Oct. 31 was $1.70, in line with the estimate.
Total billings increased 16% to $1.360 billion.
ECONOMIC REPORTS: An extremely busy morning ahead for economic data as everyone looks to clear their plate ahead of Thanksgiving.
The Labor Department will release the number of new unemployment insurance claims for the past week. Expectations are for 225,000, up slightly from the previous week and indicating a labor market that remains tight. Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to rise for the sixth consecutive week to 1.517 million, the highest since March 26.
The Census Bureau is expected to report that new orders for big-ticket manufactured items rose a seasonally adjusted 0.4% in October, matching the rise in September. Excluding the transportation component, orders are expected to remain flat after a surprise half-percent drop in September. Core capital goods orders, a closely watched indicator of business spending, are also expected to remain unchanged in October, following an unexpected 0.4% decline the previous month.
S&P Global publishes its manufacturing and services PMIs for November. The manufacturing PMI should slide to 50.0 from 50.4 previously. The services PMI is expected to rise to 47.9 from 47.8 in October. Note that 50 is the dividing line between expansion and contraction.
The Census Bureau is expected to report that sales of new single-family homes fell 5.5% in October to a seasonally-adjusted annual rate of 570,000. That would be the second consecutive monthly decline to the lowest level since July.
Also keep an eye out for the University of Michigan’s Final Consumer Sentiment Index for November. It is expected to climb to 55.0, up from the preliminary reading of 54.7 two weeks ago, when sentiment unexpectedly fell on concerns over inflation and rising interest rates. ‘interest.
FED MINUTES: The Federal Reserve will also release the minutes of its October meeting in the afternoon, which will contain more clues about the pace and magnitude of future rate hikes.
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The The Fed raised rates by 75 basis points in early November for the fourth consecutive meeting as it attempts to bring inflation closer to its 2% target with the most aggressive tightening since the 1980s.
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