US EARLY MORNING: Equity futures pause after recent upside; consumer earnings in focus with WMT, M, BABA all due to report today

US PRE-MARKETS: US equity futures are meandering around unchanged in Thursday’s pre-markets, consolidating after the sharp upside seen in wake of the softer-than-expected US CPI data this week, with newswires citing some profit taking ahead of key consumer earnings (BABA, WMT, M, BBWI - see below), weekly jobless claims data, and another round of Fedspeak featuring influential policymakers (Barr, Williams, Waller, Cook, Mester). Yields are lower across the Treasury curve, with the belly outperforming as the curve modestly bull-flattens. The Dollar Index is trading around unchanged. Crude futures are extending to the downside after weekly inventory data showed builds, which also comes amid some concerns about the demand outlook from China.

CONSUMER COMPANY EARNINGS: Today's corporate earnings slate features consumer heavyweight Walmart (WMT), as well as Macy's (M) and Bath & Body Works (BBWI), which analysts will look to for insight into holiday spending trends amid consumer pressure due to inflation. Expectations surrounding Walmart's earnings have been supported after a solid update from Target (TGT) this week. Analysts look for WMT's sales to be underpinned by demand for cheaper groceries and household staple items, while there will also be attention on how its supply chains are faring. Analysts at Jefferies are upbeat in their expectations, stating that they have the most conviction in WMT, and lifted its estimates for comp store sales (sees comp sales growth of +7.4% in 3Q vs the consensus +3.6%). "We attribute market share gains to increased mid-week shopping and GLP-1 tailwinds," Jefferies said, and in addition, "we also slightly raise our operating margin estimate based on PPI data, and forecast 3Q EPS of USD 1.59/shr, ahead of the consensus forecasts of USD 1.51." Meanwhile, there is some suggestion that the likes of Bath & Body Works (BBWI) may struggle given it sells pricier products, while consumers are cutting back on non-essentials. In the pre-market, UK luxury heavyweight Burberry (BRBY LN) reported slightly better than expected sales, although retail comps missed expectations as it was hit by a slowdown in luxury spending, and it warned it was unlikely to achieve previously issued revenue guidance if weak demand persists. Elsewhere, China consumer giant Alibaba (BABA) is also due to report in the US pre-market.

TODAY’S AGENDA:

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16 Nov 2023 - 09:30- Data- Source: Newsquawk

WMTUSDUnited StatesBBWIUS Pre-MarketFederal ReserveBurberry Group PLCPresidentLoretta MesterExxon Mobil CorpPepsiCo IncCisco Systems IncCG.USAlibabaWMT.USM.USTGT.USBRBY.LNBABA.USCSCO.USPANW.USGOOG.USDDD.USLNVGY.USGRMN.USNTES.USBURBY.USGM.USPEP.USA.USBMY.USAXP.USXOM.USTTEK.USHI.USMMS.USDataMacy's IncPEPNew York & Co IncAgilent Technologies IncBristol-Myers Squibb CoBMYFDAAmerican Express CoAXPMemberAIGBrentXOMTetra Tech IncSiemens AGGeneral Motors CoPalo Alto Networks IncPANWGOOGGoogle IncAI FP3D Systems CorpGRMNNetEase IncGMHillenbrand IncMAXIMUS IncConsumer Price IndexBRBYItalyECBBoEInitial Jobless ClaimsPPIAMATTECHTGTCSCOResearch SheetEU SessionAsian SessionHighlightedEURGBPChinaIndiaUnited Kingdom

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