Australia Markets closed

China's economy worsens in July: Morning Brief

Wednesday, August 14, 2019

Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

WHAT TO WATCH

Investors will be paying close attention to Macy’s (M) quarterly results ahead of the market open on the back of Tuesday’s tariff announcement. In the previous quarter, Macy’s management warned that its consumers would feel the impact if the U.S. followed through with its threat to slap the final round of tariffs on the remaining $300 billion worth of Chinese goods. Well, now that it appears as though those tariffs will indeed be imposed, investors and analysts are likely going to be hyper focused on any additional commentary on what the company’s plan of action is going forward to mitigate any impact from the continued trade war.

Analysts are forecasting that Macy’s will likely report results that fall short of expectations and are also anticipating a possible cut to its full-year outlook.

Macy’s is expected to report adjusted earnings of 45 cents per share on $55.56 billion in revenue during the second quarter. Same-store sales, a key industry metric, is expected to have grown 0.2%, according to data compiled by Bloomberg. The options market is implying a 10.4% move in either direction following the report.

Other notable earnings reports scheduled for Wednesday include Canada Goose (GOOS), Luckin Coffee (LK) before market open; Canopy Growth (CGC), Cisco (CSCO) after market close.

Read more

TOP NEWS

XUCHANG, CHINA - MAY 22: A worker checks threads running through a machine at a textile mill on May 22, 2019 in Xuchang, Henan Province of China. China's value-added industrial output expanded 5.4 percent year on year in April, data released by the National Bureau of Statistics (NBS) on May 15. (Photo by VCG/VCG via Getty Images)

China's economy worsens in July: China's economy stumbled more sharply than expected in July, with industrial output growth cooling to a more than 17-year low, as the intensifying U.S. trade war took a heavier toll on businesses and consumers. [Reuters]

Trump caves on tariffs: President Donald Trump delayed the new tariffs on a large batch of Chinese imports that were supposed to go into effect Sept. 1, and exempted some other Chinese imports altogether. The move de-escalates Trump’s trade war with China, and amounts to a tacit acknowledgement by Trump that his tariffs might hurt American consumers too much. [Yahoo Finance]

Unexpected inflation jump puts pressure on Bank of England: The Bank of England is set to come under pressure to control price growth after inflation in July came in at 2.1%, significantly above analyst expectations. The figure, released by the Office for National Statistics (ONS) on Wednesday, follows bumper wage growth data earlier this week. [Yahoo Finance UK]

Walmart earnings preview: Walmart (WMT) is set to report earnings on Thursday before the opening bell amid questions over its pricing strategy in the face of tariffs, and its approach to sales of guns and gun-propaganda T-shirts. The world’s biggest retailer is expected to report earnings per share of $1.22, a 5% drop, according to an average of analysts polled by Bloomberg. Revenue likely rose 2% to $130.1 billion. UBS analysts predict U.S. same-store sales of 2.5%; Bank of America’s team puts the number at 2.4%. [Yahoo Finance]

Tilray reports wider-than-expected 2Q losses: Canadian cannabis company Tilray (TLRY) reported reported wider-than-expected losses in its fiscal second quarter, while sales surged as acquisitions earlier this year padded the Canadian cannabis company’s top-line results. [Yahoo Finance]

MORE FROM YAHOO FINANCE

Jeffrey Epstein’s lawyers deeply involved in his business dealings for decades, documents show

Trump could face Republican primary opponent, says Anthony Scaramucci

'A vicious cycle': High rent is keeping Americans from health care

Investors are bracing for financial Armageddon

To ensure delivery of the Morning Brief to your inbox, please add newsletter@yahoofinance.com to your safe sender list.

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube, and reddit.