Nordstrom falls, jobless claims, Fed minutes and more: Wednesday’s 5 things to know

Here are the key events taking place on Wednesday that could impact trading.

NORDSTROM RESULTS: Shares fell more than 9% in extended trading after the retailer trimmed its annual profit forecast on Tuesday, signaling that steep discounts on outdated inventory, coupled with higher operating costs and supply chain pressures, are squeezing the company’s profit margins.

Profit margins of global fashion retailers have been hurt by rising raw material and labor costs coupled with supply chain disruptions, that have been further aggravated by the ongoing conflict in Ukraine.

The company expects fiscal 2022 profit between $2.13 and $2.43 per share, compared to a prior forecast of $2.45 to $2.75.

RETAIL TRADE GROUPS SAY A RAIL STRIKE WOULD BE DEVASTATING TO THE ECONOMY

Nordstrom reported a net loss of $20 million, or 13 cents per share for the quarter ended Oct. 29, compared to a profit of $64 million, or 39 cents per share, a year earlier.

The company’s total revenues fell to $3.55 billion in the third quarter, from $3.64 billion a year earlier, but beat analysts’ expectations of $3.47 billion, according to Refinitiv data.

However, the company reaffirmed its annual revenue and adjusted profit forecast.

HP SAYS IT WILL CUT WORKFORCE BY 4,000-6,000 BY END OF FISCAL 2025

HP JOBS: Shares gained 2% in extended trading after the company announced jobs cuts and better-than-expected quarterly results.

The information technology company expects to reduce gross global headcount by approximately 4,000-6,000 employees. These actions are expected to be completed by the end of fiscal 2025.

Fiscal fourth quarter revenue fell to $14.8 billon; the expectation was $14.73 billion.

Non-GAAP net earnings was 85 cents, topping the estimate of 84 cents.

AUTODESK FORECAST: Shares traded 9% lower in extended trading. The software maker lowered its full year guidance.

The company now sees billing growth up 16%-18%, compared to the previous forecast of $18%-21%.

Revenue is expected to grow 14% compared to 14%-15%.

Non-GAAP earning per share is forecast at $6.56-$6.62, down from $6.52-$6.71.

Fiscal third quarter total revenue rose 14% to $1.280 billion compared to the estimate of $1.281 billion.

Non-GAAP diluted earnings per share for the three months ended October 31 was $1.70, matching the estimate.

Total billings increased 16 percent to $1.360 billion.

ECONOMIC REPORTS: An extremely busy morning ahead for economic data as everyone looks to clear their plate ahead of Thanksgiving.

The Labor Department will release the number of new jobless claims for last week. Expectations are for 225,000, up slightly from the previous week and indicating a labor market that remains tight.  Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to rise for the sixth consecutive week to 1.517 million, the highest since March 26 .

The Census Bureau is expected to say that new orders for manufactured big-ticket items rose 0.4% seasonally adjusted in October, matching September’s rise. If you factor out the transportation component, orders are anticipated to remain flat after a surprise decline of half a percent in September. Orders for core capital goods, a closely watched proxy for business spending, are also expected to be unchanged in October, following an unexpected slide of 0.4% the previous month.

S&P Global releases its manufacturing and services PMIs for November. The manufacturing PMI is expected to slip to 50.0 from 50.4 previously. The services PMI is seen edging up to 47.9, from 47.8 in October. Note that 50 is the dividing line between expansion and contraction.

The Census Bureau is expected to say that sales of new single-family homes tumbled 5.5% in October to a seasonally adjusted annual rate of 570 thousand. That would be the second straight monthly decline to the lowest level since July.

Also watch for the University of Michigan’s final index of consumer sentiment for November. It’s expected to edge higher to 55.0, up from the preliminary reading of 54.7 two weeks ago when sentiment fell unexpectedly on inflation worries and rising interest rates. 

FED MINUTES: The Federal Reserve will also release the minutes from its October meeting in the afternoon, which will hold more clues on the pace and size of future rate hikes. 

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The Fed raised rates by 75 basis points at the beginning of November for the fourth straight meeting as it tries to wrestle inflation closer to its 2% target with the most aggressive tightening since the 1980s.