Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
1. Fed Chief Powell Takes Center Stage
While economists are enjoying scenic Jackson Hole, Wyo., investors will have to stick around (for the morning at least) to see the text of Federal Reserve Chairman Jerome Powell’s speech.
Powell’s Jackson Hole symposium remarks, due at 10:00 AM ET (14:00 GMT), are the highlight of the trading day. And it could have some extra impact, given the typically low volume of August Fridays.
Along with the normal parsing for any further hints on the path or rate increases, traders will be looking for anything from the Fed chief about maintaining the central bank’s independence.
President Donald Trump recently expressed that he’s “not thrilled” about the Fed’s recent hikes and reportedly told people at a fundraiser he was expecting Powell to help him out by being a cheap-money chairman.
Kansas City Fed President Esther George said two more rate hikes this year could still be appropriate, in interviews released Thursday, and added the FOMC will be able to maintain its independence.
“Expressions of angst about higher interest rates are not unique to this administration,” George told CNBC.
Powell’s speech may also contain some hints on the Fed’s feeling on the economic impact of trade battles. The Fed expressed concern about trade battles stemming economic growth, according to Fed meeting minutes released Wednesday.
The United States imposed 25% tariffs on an additional $16 billion of Chinese goods just after midnight ET Thursday, prompting China to respond with in-kind measures against US goods.
2. Core Durable Goods Expected to Rise
Before Powell heads to the mic, the Commerce Department will report the latest durable goods numbers at 8:30 AM ET (12:30 GMT).
Orders for goods that last three or more years are expected to have fallen 0.5% in July, compared with a rise of 0.8% the month before, according to a survey of economists.
Core durable goods orders, which exclude transportation, are forecast to have risen 0.5% last month.
Economists expect that orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, rose 0.4%.
3. Foot Locker Continues Retail Earnings Parade
The earnings calendar is predictably light tomorrow, but the quarterly numbers out this week have provoked some strong moves in individual stocks.
Athleticwear retailer Foot Locker (NYSE:FL) releases its latest results before the bell tomorrow.
On average, analyst surveyed expect that the company earned 70 cents a share on sales of about $1.7 billion.
Along with same-stores sales figures, investors will be looking at inventory levels to see how well the company is moving stock without big markdowns.
Shares fell sharply in early 2017, but have since staged a comeback and are up around 50% in the last year.