Retail Profits, Shelton Fed Offer, and Housing Data – What’s New in the Markets


By Geoffrey Smith – The Federal Aviation Administration is preparing to re-authorize the flight of the Boeing 737 MAX (NYSE :). Donald Trump’s candidate for Fed board fails to win Senate support; Lowe’s, Target (NYSE :), TJX (NYSE 🙂 and Nvidia (NASDAQ 🙂 report profits; Data on housing starts and building permits is due, and the US government releases its weekly oil inventory report. Here’s what you need to know about the financial markets on Wednesday, November 18.

1. Shelton’s appointment to the Fed fails

President Donald Trump’s choice for the Federal Reserve Board of Governors Judy Shelton did not gain enough support for a full vote on his nomination, which was seen as a sign that the Republican Party is starting to pull itself apart. distance itself further from outgoing President Donald Trump. .

A procedural vote to plan a final appeal on Shelton’s nomination failed after a number of GOP senators refused to back her.

The development comes against the backdrop of a growing list of failures by Trump’s lawyers to challenge the election results earlier this month. Only one of the 24 motions presented by Trump’s lawyers has been accepted by various state courts, while a number of Trump’s lawyers have resigned their terms rather than pursuing the president’s claims.

The president continued to make his election fraud claims via Twitter and fired Chris Krebs, a Republican, director of the Cybersecurity and Infrastructure Security Agency, who had vouched for the integrity of the election last week.

2. The Boeing 737 MAX should be cleared to fly

U.S. regulators are expected to re-authorize the flight of the Boeing 737 MAX after a hiatus of nearly two years. The plane, which was Boeing’s biggest money until two fatal crashes in 2018 and 2019, is returning to a virtually unrecognizable aviation market compared to 20 months ago.

While airlines around the world lined up to place orders for this model and the comparable Airbus model before the pandemic, they are now doing all they can to cancel or postpone those orders, all while selling and leasing. many of their other planes to cut costs. .

Airlines and leasing companies have already canceled more than 10% of their plane orders. Boeing estimates that the grounding and accidents have cost it some $ 20 billion to date.

The Federal Aviation Administration is likely to issue the orders granting the right to fly sometime Wednesday, according to various reports.

3. Stocks should open higher

U.S. stock markets are expected to open slightly higher, struggling for direction as the market weighs the current surge in Covid-19 cases across the country versus the prospect of widespread vaccine distribution next year.

As of 6.30am ET (10.30am GMT), were up 74 points, or 0.3%, after the underlying index fell more than half a percent on Tuesday in response to signs of a slowdown in spending from consumption.

Weak October retail sales data will accentuate attention and data for the month, which is released at 7:30 a.m. ET. The housing market has been an isolated source of economic strength so far this year, but could start to cool as mortgage rates – which have fallen by around 100 basis points this year – start to show signs of dips.

The contract increased by 0.2% and the contract by 0.3%.

4. Retail profits continue

The wave of retail profits continues, with Target, TJX and Lowe’s (NYSE 🙂 all reporting on Wednesday. Target led the way with a substantial exceedance of expectations, posting adjusted earnings per share of $ 2.79, compared to expected $ 1.60.

Lowe’s reported revenue as expected, despite a good pace on the top line.

Chipmaker Nvidia will report after the closing bell, while will also report later today.

5. Oil stocks due because OPEC + remains timid on production

The U.S. government will release its official oil report last week at 10:30 a.m. ET, as usual. The report will be compared to figures from the American Petroleum Institute on Tuesday, which showed a build-up of more than 4 million barrels in crude stocks last week.

Futures were up 1.2% to $ 42.16 a barrel at 6:30 a.m. ET, while futures were up 1.2% higher at $ 44.30, rocking the figures for l ‘API on the idea that the OPEC + producer group will postpone its current plan to increase production until early next year.

An OPEC + technical expert meeting on Tuesday did not give ministers a clear recommendation on exit policy, as some had hoped, but the language from the meeting reassured many that the group is aware of the risk of causing a new glut.


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