Powell’s speech, Gap Gains and more: Friday’s 5 things to know

Here are the main events that take place on Friday this could have an impact on trade.

JEROME POWELL: Chairman of the Federal Reserve Remarks to investors and economists will be the highlight of the Fed’s annual symposium in Jackson Hole.

People will be looking for clues as to where the Fed is heading with interest rates, primarily their size and duration.

With inflation around 9%, Powell will likely point out that the Fed is determined to get it back to its 2% target, come what may.

FED’S POWELL AT JACKSON HOLE IN THE SPOTLIGHT WITH TARIFF SPECULATIONS

Federal Reserve Jerome Powell in suit

Federal Reserve Chairman Jerome Powell. (AP Photo/Manuel Balce Ceneta/AP Newsroom)

The annual symposium is titled “Reassessing Constraints on Economics and Politics” and runs through August 27.

The Fed’s favorite inflation gauge and a look at consumer sentiment also await investors on Friday morning.

INCOME AND EXPENSES: Economists surveyed by Refinitiv anticipate expenses to increase 0.4% month-over-month in July, above June’s growth rate of 0.2%. Meanwhile, personal income is expected to jump 0.6% in July, matching June’s gain.

A woman buying items online

Woman in cafe shopping online with laptop. (Stock)

This brings us to the PCE price index, an inflation indicator that is beginning to rival the consumer price index in popularity. It jumped 1.0% month-over-month in June and 6.8% from June 2021.

GDP DECLINED AT REVISED RATE OF 0.6% IN SECOND QUARTER

The Core PCE price index, which excludes food and energy price volatility, is expected to rise 0.3% in July. The year-over-year change in the Core PCE price index, which is the Fed’s preferred measure of inflation, is expected to fall for the fourth time in 5 months to 4.7%.

CONSUMER FEELING: The University of Michigan’s final index for August is expected to rise slightly to 55.2, from the preliminary reading of 55.1 two weeks ago, which was higher than expected.

It would also mark the second increase from an all-time low.

GAP INC. : Shares rebounded 8% in pemarket trade despite the retailer withdrawing its annual forecast as the chain struggles to sell its outdated Old Navy items, while stocks pile up amid inflation burning season is forcing people to cut back on discretionary spending.

Gap Shopping Bags

Shopping at clothing retailer Gap Inc. (Dimas Ardian/Getty Images/Getty Images)

Gap, who beat quarterly revenue estimates, said sales trends improved in July and August, coinciding with lower gasoline prices.

The shift in consumer choices led to a 13% decline in second-quarter sales for Gap’s Old Navy brand.

The company’s net loss was $49 million, or 13 cents per share, compared with net income of $258 million, or 67 cents per share, a year earlier.

Gap, which recorded an inventory write-down charge of $58 million, said inventory at the end of the second quarter was 37% higher than a year earlier.

Overall revenue of $3.86 billion beat estimates of $3.82 billion, according to IBES data from Refinitiv.

DELL TECHNOLOGY: Shares lost 4% in premarket trading after the company posted its weakest revenue growth in six quarters.

Dell’s revenue rose 9% to $26.43 billion in the quarter and was roughly in line with market expectations, according to Refinitiv data.

A Dell logo on a laptop

Dell Technologies Inc., is close to a deal to sell its Boomi cloud business to private equity firms Francisco Partners and TPG, according to people familiar with the matter, as part of a broader reorganization of the PC giant’s business. and data storage. (Dell Technologies)

Consumer revenue fell 9%, but orders from enterprises preparing for the hybrid working era pushed Dell’s business revenue up 15% to $12.1 billion.

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Excluding items, Dell earned $1.68 per share.

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