What to Watch in the Week Ahead and on Monday, November 25

Nordstrom

22/11/2024 19:30

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ON MONDAY
    
Bath & Body Works is expected to post a rise in third-quarter revenue, helped by demand for its
personal care products and fragrances. Investors will look out for comments on holiday
expectations and forecasts, the impact of import tariff hikes and promotional activities.

Agilent is expected to report its fourth-quarter results. Investor focus will be on the
performance of its medical tools and equipment used in clinical studies.

    
REST OF THE WEEK
    
Best Buy is expected to report a marginal drop in third-quarter same-store sales on Tuesday, as
consumer demand for pricey electronics remains muted. Investors will watch out for comments on
shoppers' response to early holiday deals as well as fourth-quarter expectations from the
electronics retailer.

A data-heavy Wednesday will likely capture investor attention amid a holiday-shortened week due
to Thanksgiving. The Personal Consumption Expenditures (PCE) Price Index, which is the Federal
Reserve's preferred measure of inflation, is expected to have risen 2.3% on an annual basis in
the previous month, following a 2.1% increase in September. On a monthly basis, the PCE price
index is projected to show a 0.2% rise in October. Excluding the volatile food and energy
components, the PCE price index, on a month-on-month basis, is anticipated to show a 0.3% gain.
In the 12 months leading up to October, core inflation is expected to have increased by 2.8%
annually, compared to a 2.7% rise in September. In a separate report, the Commerce Department's
Bureau of Economic Analysis forecasts that consumer spending will have climbed by 0.3%,
following a previously reported increase of 0.5% in September. Additionally, the Commerce
Department's second estimate of third-quarter gross domestic product is expected to remain
unchanged at 2.8%. Durable goods orders for October are likely to have risen by 0.5%, after a
decline of 0.7% in September. However, core capital goods orders are set to have slowed to a
0.3% increase in the previous month, down from a 0.5% increase in September. Furthermore,
initial jobless claims for the week ending Nov. 23 are anticipated to rise to 217,000, up from
213,000 the previous week. On Tuesday's economic agenda, the Conference Board's consumer
confidence index for November is set to show a reading of 111.6, up from 108.7 in October.
Lastly, new home sales are likely to have decreased to 725,000 units, from 738,000 units.

Macy's is expected to post a decline in third-quarter sales on Tuesday, as the department store
chain battles consumers looking elsewhere for steeper discounts and as they remain picky about
spending. Investors will look out for comments on holiday shopping, promotions, consumer health,
cost control measures and any impact from likely tariff imposition by President-elect Donald
Trump. Additionally, thousands are expected to line the streets of New York to watch giant
balloons and floats at Macy's famed Thanksgiving Day Parade on Thursday.

Kohl's is expected to post a decline in third-quarter revenue on Tuesday, as consumers pull back
spending in department stores, hurt by higher prices. Investors will watch out for comments on
holiday demand, promotions and impact of tariffs, if any.

HP is expected to report a rise in fourth-quarter revenue on Tuesday, due to a rise in demand
for artificial-intelligence powered personal computers.

Nordstrom to report rise in third-quarter sales, driven by higher demand at its discount banner,
Rack, and from efforts to offer products such as Birkenstock and On shoes. Investors will look
out for statements on potential sale of the company to Nordstrom family, holiday period
promotions and any raises on guidance for FY24.

Abercrombie & Fitch is expected to post a rise in third-quarter revenue, helped by demand for
its apparel offerings at its namesake brand and at Hollister. Investors will look out for
comments on holiday season sales, forecasts and import tariff impacts.

Jif peanut butter maker J.M. Smucker is expected to post a rise in second-quarter revenue,
helped by resilient demand for its packaged food products such as jams and frozen food.
Investors will look out for comments on forecasts, impacts of rising coffee costs and pricing
strategies.

On the Latin American front, Brazil is set to release its inflation numbers measured by the
IPCA-15 index on Tuesday. On the same day, Argentina will publish its retail sales figures.
Additionally, Chile is expected to report its unemployment rate and manufacturing output on
Friday.

 (Compiled by Archak Sengupta in Bengaluru; Edited by Shilpi Majumdar)
 ((Archak.Sengupta@thomsonreuters.com))