Wednesday, June 5, 2019
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WHAT TO WATCH
Federal Reserve Vice Chairman Rich Clarida is scheduled to speak at 9:45 a.m. ET.
In addition, the Fed will be releasing its Beige Book at 2 p.m. ET. “The Beige Book prepared for the 18-19 June FOMC meeting will provide important context for the business response to the recent escalation of US-China trade tensions,” Nomura said in a note Friday. “We expect comments from local business leaders to reflect increased uncertainty about the economic outlook. In addition to trade policy uncertainty, we will look for comments on whether firms expect to pass on the cost of higher tariffs to consumers and the strength of retail sales and overall economic activity.”
On the corporate earnings side, investors can expect reports from American Eagle Outfitters (AEO) and Campbell Soup (CPB) before market open. Five Below (FIVE), MongoDB (MDB) and Stitch Fix (SFIX) are scheduled to report after the market close.
TOP NEWS
Questions loom over Fed efforts to make sure the 'roof isn't leaking': The Federal Reserve is listening carefully for recommendations on better achieving its dual mandate of maximum employment and price stability, but expectations are tempered for what the Fed may ultimately do at the conclusion of its review process. [Yahoo Finance]
IMF cuts China growth forecast, citing trade war risks: The International Monetary Fund said the trade war with the U.S. is tilting the balance of risks to the downside. The world’s second-largest economy is forecast to expand by 6.2% this year and 6.0% in 2020, a 10th of a percentage point down from the previous estimate in both cases, the fund said at a briefing in Beijing Wednesday. [Bloomberg]
Walmart U.S. CEO vows to keep 'the lowest prices we can' amid tariff wars: Walmart (WMT), the world’s largest retailer, warned last month that tariffs will result in higher prices for shoppers, but it’s committed to remaining the low price leader. Major U.S. retailers and manufacturers have sounded alarm after President Donald Trump threatened to slap tariffs on Mexican goods, in the midst of another fight with China. [Yahoo Finance]
A war is brewing between Trump and corporate America: They may not like his combative style, but business leaders have applauded much of President Trump’s economic agenda. Trump slashed their taxes starting in 2018, sending profits soaring. And he’s killing regulations, making it easier for business to operate. But the honeymoon is ending as a tariff-happy Trump disrupts supply chains all over the world and threatens some U.S. companies outright. [Yahoo Finance]
Salesforce projects revenue showing continued strong growth: Salesforce.com Inc. (CRM) gave a quarterly revenue forecast that topped Wall Street estimates, signaling that the market leader in customer-relations software will continue to see rapid growth. [Bloomberg]
The downfall of 3 iconic German companies: The simultaneous decline of Volkswagen, Deutsche Bank (DB), and Bayer has been nothing short of stunning. It raises the question as to whether it is merely coincidence, or if there is a larger systemic issue in play. Either way, something is rotten in the state of Germany. [Yahoo Finance]
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