Brown Forman, Campbell Soup, Yellen Testimony: 3 Things to Watch
2022.06.07 23:10
By Liz Moyer
Investing.com — Stocks shook off early losses to rally on Tuesday despite a warning by Target that rattled the retail sector.
Like other retailers, Target Corporation (NYSE:TGT) is experiencing changing consumer habits as spending shifts from the discretionary items that were popular during the pandemic stay-at-home period to experiences and travel now that things have reopened, not to mention consumers are prioritizing amid higher prices for basics such as food and fuel.
The Federal Reserve meets next week to decide the next step to take on interest rates, with expectations for a half-point increase to tame inflation. Treasury Secretary Janet Yellen told the Senate Finance Committee on Tuesday she expects inflation to remain high. Yellen will testify again in the House on Wednesday.
Softness in the retail sector could be a signal of a slowdown, though not every retailer experienced the same challenges in the most recent quarter. Those that have higher-spending customers reported strong sales trends in clothing and accessories as social and business activity picks up.
Novavax Inc (NASDAQ:NVAX) shares should be ready to rise after the trading halt is lifted. The advisory panel of the Food and Drug Administration said it recommends the company’s Covid-19 vaccine for adults 18 years old and up after deliberating safety and effectiveness data at an all-day meeting on Tuesday.
Here are three things that could affect markets tomorrow:
1. Brown Forman earnings
Spirits maker Brown Forman (NYSE:BFb), owner of the Jack Daniels and Finlandia brands among others, is reporting earnings on Wednesday. Analysts expect earnings per share of 27 cents on revenue of $832 million.
2. Campbell Soup
Food maker Campbell Soup Company (NYSE:CPB) is expected to report EPS of 61 cents on just over $2 billion in income. Analysts will be listening to what executives have to say about supply chains.
3. Yellen testimony
Treasury Secretary Janet Yellen will testify about the federal 2023 fiscal budget in the House Ways and Means Committee meeting on Wednesday at 10 AM ET. Yellen has already acknowledged in the Senate that the persistent high inflation is “unacceptable.”
