by The editor-in-chief of the Kobeissi Letter provides insight into the impact of the Fed meetings on the market in ‘Making Money’.
Here are the key events that will take place on Wednesday. that could affect trade.
POWELL SPEECH: The Federal Reserve chairman will speak Wednesday at the Brookings Institution.
It is the last major speech scheduled for Fed officials before upcoming policy meetings on December 13-14.
Traders will pay close attention to what Powell says, as it could provide clues as to what the next move in interest rates might look like.
THE FIGHT AGAINST INFLATION COULD LAST UNTIL 2024, WARNS A FED OFFICIAL
Federal Reserve Chairman Jerome Powell will speak at the Brookings Institution. (AP Photo/Manuel Balce Ceneta, File/AP Press Room)
ECONOMIC REPORTS: Several economic data points will be released that could influence the Federal Reserve’s decision making, including: the second estimate of Q3 GDP. The ADP Private Payrolls Report, Job Openings and Job Turnover Survey, Pending Home Sales, and the Fed’s Beige Book.
A BNSF rail terminal worker supervises the departure of a freight train in Galesburg, Illinois. ((AP Photo/Shafkat Anowar, File) / AP Newsroom)
RAILWAY CONGRESS AND VOTE: The US House of Representatives was set to vote Wednesday to block a rail strike that could happen on December 9, after President Joe Biden warned of dire economic consequences and massive job losses.
House Speaker Nancy Pelosi said lawmakers will vote Wednesday to impose a tentative contract reached in September on a dozen unions representing 115,000 workers.
Pelosi said the House would vote separately Wednesday on a proposal to grant seven days of paid sick leave to railroad employees.
BIDEN’S PUSH TO AVOID NATIONAL RAILWAY STRIKE FACES OPPOSITION FROM PROGRESSIVE DEMOCRATS
There are no paid sick days under the tentative agreement after the unions requested 15 and the railways agreed to a personal day.
The measure needs a simple majority to pass the House. The bill would require a supermajority of 60 out of 100 votes to pass the Senate.
The US Congress has passed laws to delay or prohibit rail and airline strikes several times in recent decades.
HEWLETT-PACKARD COMPANIES: The shares gained 2% in extended trading after the company reported quarterly results in line with analyst estimates and offered strong earnings guidance.
The company forecast fiscal first-quarter sales of between $7.2 billion and $7.6 billion, while analysts surveyed by FactSet have on average modeled $6.98 billion.
STOCK MARKET COULD FALL ANOTHER 24% NEXT YEAR, WARNS BANK OF AMERICA
HPE reported a fiscal fourth quarter net loss of $304 million, or 23 cents per share, compared to net earnings of $409 million, or 31 cents per share, in the prior-year quarter. Adjusted earnings were 57 cents per share, according to the Wall Street Journal.
Analysts polled by FactSet had expected an average net income of 57 cents per share on revenue of $7.37 billion.
Entrance of a pet products and services retailer (iStock/iStock)
EARNINGS REPORTS: Before the market opens, Build-A-Bear Workshop and Petco must submit the results.
After the bell, Box, Five Below, La-Z-Boy, Okta, Salesforce and Victoria’s Secret will update investors on their earnings.
