Nordstrom falls, jobless claims, Fed minutes and more: Wednesday’s 5 things to know

Here are the key events taking place on Wednesday which could impact trading.

NORDSTROM RESULTS: Shares fell more than 9% in extended trading after the retailer trimmed its full-year profit forecast on Tuesday, signaling steep discounts on obsolete inventories, coupled with higher operating costs and supply chain pressures, are squeezing company profit margins.

Profit margins of global fashion retailers have been hurt by rising raw material and labor costs along with supply chain disruptions, which have been further exacerbated by the ongoing conflict in Ukraine.

The company expects fiscal 2022 earnings of $2.13 to $2.43 per share, up from a previous forecast of $2.45 to $2.75.

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This image shows a Nordstrom retail store in a suburban mall. (iStock-Nordstrom / iStock)

Nordstrom reported a net loss of $20 million, or 13 cents per share for the quarter ended October 29, compared to earnings of $64 million, or 39 cents per share, for the prior year.

The company’s total revenue fell to $3.55 billion in the third quarter, compared with $3.64 billion a year earlier, but beat analyst expectations by $3.47 billion, according to data. by Refinitiv.

However, the company reiterated its adjusted annual revenue and profit forecasts.

HP Says It Will Reduce Workforce By 4,000-6,000 Employees By FY2025 End

HP JOBS: Shares gained 2% in extended trading after the company announced job cuts and better-than-expected quarterly results.

HP computer screen

Photos of HP products on display (iStock / iStock)

The information technology company plans to reduce its global gross headcount by approximately 4,000 to 6,000 employees. These actions are expected to be completed by the end of fiscal year 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 by 84 cents.

AUTODESK PREDICTION: Shares traded 9% lower in extended trading. The software maker lowered its forecast for the full year.

The company now sees billing growth of 16%-18%, versus a previous forecast of $18%-21%.

Revenue is expected to grow 14% versus 14%-15%.

Non-GAAP earnings per share are expected at $6.56-$6.62, down from $6.52 to $6.71.

Total fiscal third quarter revenues increased 14% to $1.280 billion versus an estimate of $1.281 billion.

Non-GAAP diluted earnings per share for the three months ended October 31 was $1.70, which matched our estimate.

Total revenue increased 16% to $1.360 billion.

ECONOMIC RELATIONS: An extremely busy morning for economic data as everyone tries to clear their plate before Thanksgiving.

unemployment claim form

The Labor Department will report unemployment claims one day early due to Thanksgiving. (FBN)

The Labor Department will release the number of new jobless claims for the past week. Expectations are for 225,000, up slightly from the previous week and pointing to a labor market that remains tight. The continuing claims, which track the total number of workers collecting jobless benefits, are expected to rise for the sixth straight week to 1.517 million, the most since March 26.

The Census Bureau said new orders for large manufactured items were expected to rise a seasonally adjusted 0.4% in October, equaling September’s increase. Excluding the transportation component, orders are expected to remain unchanged after a surprise drop of half a percentage point in September. Orders for basic capital goods, a closely monitored indicator of business spending, are also expected to remain unchanged in October, following an unexpected decline of 0.4% the previous month.

S&P Global releases its manufacturing and services PMI for November. The manufacturing PMI is expected to slip to 50.0 from the previous 50.4. The services PMI is seen rising 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 say that sales of new single-family homes plunged 5.5% in October to a seasonally adjusted annual rate of 570,000. It would be the second consecutive monthly drop to the lowest level since July.

Also look at the University of Michigan’s final consumer sentiment index for November. It is expected to rise to 55.0, up from a preliminary reading of 54.7 two weeks ago when sentiment fell unexpectedly on inflation concerns and rising interest rates.

FEEDING MINUTES: The Federal Reserve is also to release the minutes of its October meeting in the afternoon, which will contain further clues about the pace and size of future rate hikes.

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The The Fed raised rates by 75 basis points in early November for the fourth straight meeting as it tries to bring inflation closer to its 2% target with the most aggressive tightening since the 1980s.

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