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The Federal Reserve releases minutes from its July policy-setting session, which will be parsed
for clues on the interest rate debate. The Fed may well hike rates in September, and changes in
the July statement pointed to an improving economy and labor markets. Characterization of the
debate in the minutes could indicate how firm opinions are about the state of the U.S. economy,
and how confident members are that inflation and employment will move towards the Fed's target
levels. (1800/2200) Investors will also look for the Labor Department's Consumer Price Index,
which is expected to have increased 0.2 percent in July, a bit down from a rise of 0.3 percent
in June. (0830/1230)
Target Corp (NYSE:TGT) releases its second-quarter results. The company has been restructuring operations
as it focuses on fewer products. Brain Cornell, who took over as CEO in August last year, has
focused on core categories such as baby, kids and wellness products and exited the money-losing
Canada business. He is also laying off thousands of employees. Investors will watch for
Cornell's comments on the back-to-school season, his attempts to revive grocery sales,
management reshuffles, smaller store rollouts and supply chain investments.
Lowe's Companies, the second-largest U.S. home improvement chain, is likely to report
second-quarter sales below analysts' average estimate. While strong housing market data over the
last few months is expected to have kept overall demand for home improvement goods steady,
record rainfall in May and June in large parts of the United States are likely to have kept a
lid on sales of products in the home exterior improvement categories, such as paint and
gardening supplies. Analysts are looking out for any cut in the company's full-year sales
forecast especially since it reported weaker-than-expected sales for the first quarter.
Data storage equipment maker NetApp Inc (NASDAQ:NTAP) is expected to report first-quarter revenue slightly
above analysts' average estimate. NetApp, which cut about 500 jobs in May, has been trying to
boost growth by focusing on cloud-based products as businesses cut spending on high-end storage
systems. The company appointed George Kurian as its new CEO in June to replace Tom Georgens.
Investors would be looking for second-quarter forecast.
The Federal Reserve Bank of Minneapolis President Narayana Kocherlakota speaks before the
"Macroeconomic Policy and Price Measurement Issues in a Low Inflation Environment" conference,
in Seoul, South Korea. (2020/0020)
Teen apparel retailer American Eagle Outfitters (NYSE:AEO) Inc is expected to report second-quarter profit
and sales above analysts' average estimates. The earnings beat is expected to be driven by
trendy, fashionable merchandise, lower discounts, benefits from lower cotton prices and tight
inventory controls. American Eagle is also benefiting from a new multi-channel distribution
center that allows it to control inventories more efficiently by enabling it to supply to its
brick-and-mortar and online stores. Investors will look for third-quarter forecast, commentary
on promotions and trends, and expectations for the back-to-school shopping season.
LIVECHAT: Retail Earnings with Alpha Now's Jharonne Martis
Its retail earnings season in the U.S. and though government data showed sales rebounding in
July, suggesting the economy was growing solidly early in the third quarter and bolstering the
case for a Federal Reserve interest rate hike, retailers' outlooks for the rest of the year
could show a coming chill. Inventories are rising and a rate hike may well squelch budding
consumer demand. Join Jharonne Martis, retail analyst at Alpha Now at (1000/1400) to discuss how
retailers are positioned heading into the all-important holiday season. To join the Global
Markets Forum, click here: http://bit.ly/1kTxdKD
(All analysts' estimates are according to Thomson Reuters StarMine, unless mentioned otherwise)