Here are the main events taking place on Wednesday this could have an impact on trade.
POWELL’S SPEECH: The chairman of the Federal Reserve is scheduled to speak at the Brookings Institution on Wednesday.
This is the last major speech scheduled for Fed officials ahead of the upcoming monetary policy meetings on December 13-14.
Traders will be very attentive what Powell says as it could give clues as to what the next move in interest rates might look like.
ECONOMIC REPORTS: Several economic data points that could play into the Fed’s decision-making will be released, including: the second estimate of Q3 GDP. The ADP Private Payroll Report, Job Openings and Labor Turnover Survey, Pending Home Sales and the Fed’s Beige Book.
CONGRESS AND RAILWAY VOTE: The U.S. House of Representatives was due to vote on Wednesday to block a railroad strike that could potentially occur as soon as Dec. 9, after President Joe Biden warned of dire economic consequences and massive job losses.
House Speaker Nancy Pelosi said lawmakers would vote on Wednesday to impose a tentative agreement reached in September on a dozen unions representing 115,000 workers.
Pelosi said the House would vote separately on Wednesday on a proposal to give railroad employees seven days of paid sick leave.
There are no paid sick days under the tentative agreement after unions demanded 15 and the railways settled on a personal day.
The measure needs a simple majority to pass the House. The bill would require a supermajority of 60 out of 100 votes to pass the Senate.
The US Congress has passed laws to delay or prohibit railroad and airline strikes several times in recent decades.
HEWLETT-PACKARD COMPANIES: Shares gained 2% in extended trading after the company released quarterly results in line with analysts’ estimates and offered a strong earnings forecast.
The company forecast first-quarter sales of $7.2 billion to $7.6 billion, while analysts polled by FactSet modeled an average of $6.98 billion.
HPE reported a fourth-quarter net loss of $304 million, or 23 cents per share, compared with net income of $409 million, or 31 cents per share, in the year-ago quarter. Adjusted earnings were 57 cents per share, according to the Wall Street Journal.
Analysts polled by FactSet had expected average net income of 57 cents per share on revenue of $7.37 billion.
PROFIT REPORTS: Before the market opens, results are expected from Build-A-Bear Workshop and Petco.
After the bell, Box, Five Below, La-Z-Boy, Okta, Salesforce and Victoria’s Secret will notify investors of their earnings.