Walmart sues Tesla over fires at stores fitted with its solar panels: Morning Brief

Wednesday, August 21, 2019

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


Lowe’s (LOW) quarterly report ahead of the market open comes on the heels of rival Home Depot’s (HDweaker-than-expected results Tuesday morning. Analysts aren’t anticipating a rosy quarter for Lowe’s. Among tariff woes, Lowe’s is likely facing inventory growth, lumber deflation and margin pressure. Gross margins in the second quarter are expected to have fallen by over 200 basis points to 32.2%.

Lowe’s is expected to report adjusted earnings of $2.01 per share on $20.95 billion in revenue, according to data compiled by Bloomberg. Same-store sales, a key metric for retailers, is expected to have risen 2.4% during the second quarter.

Target’s (TGT) report comes on the heels of Walmart’s better-than-expected results last week. Target’s e-commerce performance during the quarter will be in focus. The big box retailer is also expected to see a bit of a boost in same-store sales growth thanks to the Toys “R” Us and Babies “R” Us closures. Nevertheless, Target, like its peers, is not immune to the tariffs. Investors will be paying close attention to anything management says about the tariffs.

Analysts polled by Bloomberg are expecting Target to report adjusted earnings of $1.62 per share on $18.25 billion in revenue during the second quarter. Same-store sales are expected to have risen 2.9% compared to 6.5% growth in the same period last year.

Finally, department store Nordstrom (JWN) will report results after the market close Wednesday. Analysts are predicting that Nordstrom’s second quarter earnings fell 17% from last year, and same-store sales are expected to have fallen 2.2%. Nordstrom is expected to report adjusted earnings of 75 cents per share on $3.85 billion in revenue.

Other notable earning reports scheduled for Wednesday include recent IPO Jumia Tech (JMIA) before market open and L Brands (LB) after the market close.

Read more


(AP Photo/Mark Lennihan, File)

Walmart sues Tesla over fires at stores fitted with its solar panels: Walmart Inc. (WMT) sued Tesla Inc. (TSLA), saying solar panels supplied by the electric car maker were responsible for fires at about seven of its stores, according to a lawsuit filed in a New York court on Tuesday. [Reuters]

Why Trump won’t get another tax cut: The economy is doing “tremendously well” and consumers are “loaded up with money,” according to President Trump. Yet he’s pushing for the kind of economic stimulus measures normally associated with recessions. [Yahoo Finance]

Citigroup and BNP dragged into case against Huawei CFO: Banks Citigroup (C) and BNP Paribas (BNP.PA) have been dragged into the criminal case against Huawei, which has become emblematic of the tensions between the US and China. Reuters reported on Wednesday that the two global banks have been named in newly released documents that form part of the case against Huawei CFO Meng Wanzhou, who is the daughter of the telecoms giant’s founder. [Yahoo Finance UK]

Also: Huawei CFO allegedly said the company has an office in Iran [Bloomberg]

Jackson Hole Preview: Fed will try not to ‘trigger carnage’: This year’s central banking meeting in Jackson Hole, Wyoming appears to have tenser undertones than in previous years. Mounting worries over a U.S. recession and continued pressures from the White House are weighing on a Federal Reserve also trying to defend the U.S. economy from spillover effects of a slowdown in Europe and China. With financial conditions and global concerns darkening the otherwise tranquil backdrop of the Grand Tetons, market participants will be gleaning Fed commentary in Wyoming for clues about what policymakers may be thinking for next steps. [Yahoo Finance]

Alibaba postpones Hong Kong listing amid protests: China's biggest e-commerce company Alibaba Group Holding Ltd. (BABA) has delayed its up to $15 billion listing in Hong Kong amid growing political unrest in the Asian financial hub, two people with knowledge of the matter told Reuters. [Reuters]


Marijuana company boards are shockingly more white than Fortune 100 boards: Exclusive

Home Depot CFO: We don't see a recession

Netflix stock is vulnerable in a recession, Nomura says

Epstein's will highlights key role of his longtime attorney

Legendary coach Nick Saban teams with the Aflac duck for new ad campaign

To ensure that the Morning Brief is delivered to your inbox, please add to your safe sender list.

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