Here are the key events taking place on Thursday that could impact trading.
JEROME POWELL: The Fed chairman will appear at the Cato Institute’s annual monetary conference.
The event will highlight a conversation with Powell on monetary policy after 40 years.
Powell addressed the current inflation challenges at the latest Jackson Hole conference, saying that bringing down inflation could create a heavy burden for American families. His speech sent the stock market reeling.
JOBLESS CLAIMS: The Labor Department will release its tally of new claims for unemployment benefits for last week, expected to provide more evidence of a tight labor market that’s cooling.
Expectations are for a slight increase to 240,000, after falling more than expected to a two-month low of 232,000 the previous week.
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to edge lower to 1.435 million. That would be down from 1.438 million the prior week, the highest in nearly five months.
AMERICAN EAGLE OUTFITTERS: Shares plunged 15% in extended trading after the retailer missed Wall Street estimates for adjusted profit and said it would pause quarterly dividend as it fortifies its finances against a hit from inflation.
The company would also put a hiring freeze, reduce non-critical expenses and lower capital spending, Chief Executive Officer Jay Schottenstein said in an earnings call.
The company’s net revenue was $1.20 billion, compared with $1.19 billion a year earlier, in-line with analysts’ expectation, according to IBES data from Refinitiv.
Excluding items, American Eagle earned 4 cents per share, largely below estimates of 13 cents.
The company had paid shareholders a dividend of 18 cents in the previous quarter.
GAMESTOP: Shares jumped 11% in extended trading after the retailer announced a partnership with crypto exchange FTX US and reported fiscal second quarter results.
The partnership intends to introduce more GameStop customers to FTX’s community and its marketplaces for digital assets. In addition, GameStop will begin carrying FTX gift cards in select stores.
Gamestop’s net sales for the three months ended July 30 were $1.136 billion for the quarter, down slightly from $1.183 billion in the prior year’s second quarter.
The net loss widened to $108.7 million from $61.6 million.
Selling, general and administrative expenses were $387.5 million for the quarter, representing a sequential decline of 14.3% from the first quarter of 2022.
ENERGY INVENTORIES: The DOE’s Energy Information Administration will release its inventory report for last week.
Crude stockpiles are expected to decrease by one-quarter of a million barrels, following a much steeper-than-expected draw of more than 3.3 million barrels the previous week.
Watch for a build of 530,000 barrels in distillate supplies (heating oil, diesel fuel), and a draw of about 1.7 million barrels in gasoline inventories.