Wednesday Morning Rebel Brief — Fed Minutes Incoming

Fed Minutes To Be Released Later Today

Fed minutes released later today will provide details regarding what was discussed during the last Fed meeting. It will show who voted with the majority, who dissented, and may provide the market insight into the Fed’s next move. Stock futures are under pressure as investors sit on their hands, waiting for any new policy information.

Wendy’s ($WEN) Stock Jumps

After a painful top and bottom line earnings miss last month, Wendy’s stock is getting some relief this morning. The fast food stock is up more than 9% in premarket trading off the news that activist investor Nelson Peltz and Trian Partners plan to “explore and evaluate the possibility a potential transaction with respect to the company to enhance shareholder value.” In other words — a takeover. 

Nordstrom ($JWN) Shocks the Market With Revenue Surprise and Raised Guidance

Nordstrom missed EPS expectations (-$0.06 vs -$0.05 expected) but beat revenue expectations ($3.57B vs $3.28B expected). The company raised 2022 revenue guidance, earnings per share, and credit card sales expectations.

This raised guidance likely surprised the street, considering the opposing results in Target, Kohl’s, Ross, and Abercrombie & Fitch — all of which took serious damage due to inflationary pressures. The stock soared as high as 9% on the news, and is currently up 5% in the premarket. 

Dick’s Sporting Goods ($DKS) Plunges Despite Earnings Beat

Dick’s beat EPS expectations by 17.3% ($2.85 vs $2.43 expected) and beat revenue expectations by 3.1% ($2.7B vs $2.62B expected). However, revenue fell by 7.5% year-over-year. 

Most notably, the company issued a hefty guidance reduction. Dick’s Sporting Goods now expects 2023 earnings of $9.15 to $11.70 per share compared to a previous range of $11.70 to $13.10 per share. Despite posting a top and bottom line earnings beat, $DKS has dropped more than 12% in premarket.

On the 100th Trading Day of 2022, a Grim Record

The S&P 500 and the Dow Jones Industrial Average are on pace for their worst start to the year in more than half a century — 1970 was the last time the year began this poorly. But for the Nasdaq? It’s the worst first 100 days in history. There has never been a more bearish beginning than the one the market is experiencing right now. This is truly a historic moment in market history.