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Here are five key things that could affect trading on Thursday.
‘MILD RECESSION’ IS HERE: Schork Group director Stephen Schork warned on Monday that the United States is experiencing a “mild recession” and the “pull” on energy prices will be greater as the severity of the recession intensifies.
“We know we have runaway inflation,” Schork said Monday, arguing that “there are only two ways to attack inflation,” through supply building or demand destruction. , more oil, natural gas and fossil fuels are needed on the market.
“The same is true with food. We’re in a serious situation where we’re not producing enough food, especially as we look at this fall harvest and because of the manipulation in that market.”
FORMER CONGRESSMAN AMONG NINE ACCUSED OF INSIDER TRAFFICKING
Schork Group director Stephen Schork takes a look at energy markets, arguing that the US is already in a “mild recession”. (iStock)
THE HINT OF INFLATION: Walmart lowered its earnings outlook for the second quarter and full year on Monday, saying skyrocketing inflation is weighing on the retail giant. News drove Walmart stock down after the closing bell. The company announced that it expects adjusted earnings per share for the second quarter to decline to around 8-9% and drop to the 11-13% range by fiscal 2023.
KLONDIKE DISCONTINUES CHOCO TACO AFTER ALMOST 4 DECADES IN THE MARKET
| Heart | Security | Latest | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 132.02 | -0.19 | -0.14% |
THE FED MEETING BEGINS: The two-day FOMC meeting, the fifth policy meeting of the year for the Federal Reserve, starts Tuesday morning. It concludes Wednesday afternoon with the rate decision, policy statement and post-meeting press conference with Fed Chairman Jerome Powell.
This May 4, 2021, file photo shows the Federal Reserve Building in Washington. (AP Photo/Patrick Semansky, File/Associated Press)
The Fed is widely expected to raise the fed funds rate by three-quarters of a percentage point to a range of 2.25%-2.5%. It would be the central bank’s second consecutive 75bp rate hike (June saw the first 75bp hike since November 1994), following a half-point hike in May and a quarter-point rise in March. Prior to that, the Funds rate had been in a range of 0%-0.25% following two emergency rate cuts in March 2020 in response to the global pandemic.
HUGE EARNINGS REPORT DAY: Five Dow members are scheduled to report second quarter earnings – 3M, Coca-Cola and McDonald’s in the morning and Microsoft and Visa after the close. Before the opening bell, automaker General Motors, industrial conglomerate General Electric, health insurer Centene, package delivery powerhouse United Parcel Service, aerospace and defense heavyweight Raytheon Technologies and homebuilder Pulte Group, to name a few.
After the closing bell, Microsoft and Google’s parent company Alphabet are scheduled to report. Microsoft is expected to say fiscal fourth-quarter earnings per share rose 5.7% from a year earlier to $2.29 on a 14% rise in revenue to $52.44 billion. Microsoft divides its operations into three main segments: Intelligent Cloud (Azure, SQL, and Windows servers), Computing More Personal (Windows, Xbox, Surface, and PC accessories), and Productivity and Business Processes (Office 365, Skype, LinkedIn).
BIDEN SAYS ‘WE ARE NOT GOING TO BE IN A RECESSION’ BEFORE GDP NUMBERS: ‘IF GOD CAN’
| Heart | Security | Latest | Change | Change % |
|---|---|---|---|---|
| HMM | 3MCO | 134.12 | 0.00 | 0.00% |
| COKE | CONSOLIDATED COCA COLA | 494.11 | -2.76 | -0.56% |
| DCM | MCDONALD’S CORP. | 250.38 | -3.61 | -1.42% |
| MSFT | MICROSOFT CORPORATION. | 258.83 | -1.53 | -0.59% |
| v | VISA INC. | 214.27 | +0.57 | +0.27% |
HOME PRICES, HOME SALES, CONSUMER CONFIDENCE: At 9 am ET, the month of May The house price report will be published. There is no estimate for the non-seasonally adjusted 20-city index, but economists surveyed by Refinitiv expect the seasonally adjusted index to rise 1.5% month over month.
For the year, house price growth as measured by the 20-city index is forecast to cool to 20.6%, down from a record 21.2% annual increase in April. At 10 a.m. ET, the Census Bureau is expected to say new single-family home sales fell 5.2% in June to a seasonally adjusted annual rate of 660,000. That would be the fifth drop in six months as higher mortgage rates and record prices keep many home buyers out of the market. For context, April’s reading of 629,000 was the lowest in two years.
A house for sale in Geneva, Illinois, June 23, 2009. (REUTERS/Jeff Haynes/Reuters Photos)
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Also at 10 am ET, the Conference Board will release its Consumer Confidence Index for July. It is expected to fall one and a half points, the third consecutive monthly drop, to 97.2, the lowest level since February 2021. Confidence is down sharply from a post-pandemic high of 128.9 in June last year. due to concerns about inflation.