Things To Watch

Retail: Haves and Have Nots

A batch of retail companies report their most recent quarterly results this week. The group spans the spectrum from market darlings Dicks Sporting Goods (DKS), Abercrombie & Fitch (ANF), and Burlington Coat Factory (BURL) to underperformers Macy’s (M), Five Below (FIVE), Kohl’s (KSS), and Nordstrom (JWN). Taken together, the results and guidance from this collection of retailers should provide investors with an updated look into early holiday season shopping trends and the persistence of bargain hunting amongst U.S. consumers.

Fed Meeting Minutes

Tomorrow afternoon, minutes will be released from the Federal Open Market Committee’s (FOMC) November 6-7 meeting, at which policymakers cut the federal funds rate by 0.25%. In recent weeks, a growing number of Fed speakers have communicated lower downside risks to economic activity and employment as most official economic data in October and November has been solid.

Core PCE

Data on Thursday is expected to show the Federal Reserve’s preferred inflation gauge, the core personal consumption expenditures (PCE) index, rose 0.3% in October and 2.8% on a year-over-year basis. This would mark a slight uptick from the 2.7% increase in September. Although recent annual inflation readings are far from the generationally-high levels in 2022, they are still a decent way from the Fed’s stated 2% target. If core inflation remains sticky just under 3% or creeps higher in coming months, we could see a slower pace of Fed rate cuts.

Happy Thanksgiving!

Markets are closed on Thursday, but the kitchen is open! According to WalletHub, Americans have spent an estimated $1.2 billion in recent years on roughly 46 million turkeys for Thanksgiving. The average host spends $361 on Thanksgiving dinner and décor and dedicates an average of 9.6 hours preparing for the meal. About 13% of Americans plan to get takeout or go to a restaurant on Thanksgiving.