U.S. Federal Reserve Vice Chairman Lael Brainard listens to a question during an interview in Washington, DC, U.S., Monday, November 14, 2022.
Andre Harrer | Bloomberg | Getty Images
Here are the most important information investors need to start their trading day:
1. The Fed speaks in the spotlight
Stocks fell on Monday, setting off a strong two-day winning streak following better-than-expected inflation data. But will that be enough to halt the momentum of what has been an otherwise good month? What Federal Reserve officials are saying as they chew on a fresh round of economic data will likely have a lot to do with it. On Monday, we got a little taste of this push and pull. Fed Vice Chairman Lael Brainard issued a more dovish note on the potential easing of rate hikes, which the central bank is using to fight inflation, while Fed Governor Christopher Waller said the market was getting ahead of itself. Get ready for more Fed speeches as well. Philadelphia Fed President Patrick Harker, Fed Governor Lisa Cook and Fed Vice Chairman for Supervision Michael Barr are all set to speak on Tuesday. Read live market updates here.
2. Walmart’s Grocery Advantage
Walmart’s beef aisle assortment has reflected changing consumer preferences as more consumers opt for higher quality cuts of meat.
Melissa Repko | CNBC
Like other retailers, walmart had to contend with rampant inflation, changing customer behavior and too much inventory. But the country’s largest retailer also has a big trick up its sleeve: it’s also the country’s largest grocer. That strength helped the company beat expectations in its quarterly earnings report on Tuesday. Walmart also improved its outlook for the year as the holiday shopping season continues, and it has made more progress in depleting excess inventory. While groceries offer lower profit margins, Walmart’s reputation for deeper discounts attracted grocery shoppers during this period of high inflation, including new, higher-income customers. And, Walmart said Tuesday, its grocery market share increased over the previous quarter.
3. The G-20 denounces the invasion of Ukraine
Russian Foreign Minister Sergei Lavrov arrives for the G-20 foreign ministers’ meeting in Indonesia.
Image Alliance | Image Alliance | Getty Images
Leaders of the G-20, which includes the world’s largest economies, are poised to condemn Russia’s invasion of Ukraine, even as Russian Foreign Minister Sergei Lavrov attends the meeting in Indonesia. “Most members strongly condemned the war in Ukraine and stressed that it was causing immense human suffering and exacerbating existing fragilities in the global economy – limiting growth, increasing inflation, disrupting supply chains , increasing energy and food insecurity and increasing risks to financial stability,” a draft copy of the joint statement said. Moscow, meanwhile, is annoyed that the war in Ukraine took center stage at the summit. Read live war updates here.
4. Home Depot and inflation
A Home Depot store in Hyattsville, Maryland on February 22, 2022.
Stefani Reynolds | AFP | Getty Images
Home depositQuarterly results beat out the top and bottom on Tuesday as the closely watched home improvement chain reported sales growth from the same period last year. The company also remained true to its outlook. “We delivered another strong performance in the third quarter, driven by strength in project-related categories across the company,” CEO Ted Decker said. At a more granular level, however, we can see the impact of high inflation over the past four decades. The average ticket rose nearly 9% to $89.67, and retail sales per square foot rose more than 5% to $618.50. But the total number of customer transactions for the quarter fell more than 4% to 409.8 million. We should know more at 9 a.m. ET, when Home Depot holds its earnings conference call.
5. A million creditors?
Sam Bankman-Fried, co-founder and managing director of FTX, in Hong Kong, China on Tuesday, May 11, 2021.
Lam Yık | Bloomberg | Getty Images
Fallen cryptocurrency exchange FTX may have more than a million creditors, lawyers have said in a new filing in the company’s Chapter 11 bankruptcy case. To compare, on Friday when FTX filed its first filing, it said it had over 100,000 creditors. The updated filing also wasn’t very flattering for Sam Bankman-Fried, the founder of FTX who stepped down as CEO last week when the crypto hit the fan. “Questions have arisen about Mr. Bankman-Fried’s leadership and the management of FTX’s complex array of assets and businesses under his direction,” the attorneys wrote. Another Bankman-Fried company, Alameda Research, had borrowed billions in client funds from FTX to ensure it could process withdrawals, CNBC previously reported.
– CNBC’s Carmen Reinicke, Melissa Repko, Silvia Amaro, Lillian Rizzo and Ryan Browne contributed to this report.
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