5 things you need to know before the stock market opens on Tuesday

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Lael Brainard, Vice Chairman of the US Federal Reserve, listens to a question during an interview in Washington, DC, US, on Monday, November 14, 2022.

Andrew Harrer | Bloomberg | Getty Images

Here are the most important news items investors need to start their trading day:

1. Fed speaks in the spotlight

Shares fell Monday, breaking a strong two-day profit streak after better-than-expected inflation numbers. However, will it be enough to halt momentum in what has been an otherwise good month? What Federal Reserve officials say as they chew another round of economic data will likely have a lot to do with it. Monday we had a taste of this pushing and pulling. Fed Vice Chairman Lael Brainard softened about possible tapering of interest rate hikes, which the central bank uses to fight inflation, while Fed Governor Christopher Waller said the market was ahead of the curve. Also get ready for more Fed language. Philadelphia Fed President Patrick Harker, Fed Governor Lisa Cook and Fed Vice Chair for Oversight Michael Barr are set to talk Tuesday. Read live market updates here.

2. The supermarket advantage of Walmart

The assortment in Walmart’s beef department reflects changing consumer preferences as more of them opt for higher quality cuts of meat.

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Melissa Repko | TBEN

Like other retailers, walmart has struggled with rising inflation, changing customer behavior and excess inventory. But the country’s largest retailer also has a major asset up its sleeve: it is also the country’s largest grocer. That strength helped the company beat expectations in its quarterly earnings Tuesday. Walmart also improved its outlook for the year as the holiday shopping season progresses, making more progress in plowing through its excess inventory. While groceries offer smaller profit margins, Walmart’s reputation for bigger discounts during this period of high inflation has attracted consumers, including new and higher-income customers. And, Walmart said Tuesday, the supermarket’s market share grew in the prior quarter.

3. G-20 defeats invasion of Ukraine

Russian Foreign Minister Sergei Lavrov arrives for the meeting of G-20 foreign ministers in Indonesia.

Photo Alliance | Photo Alliance | Getty Images

The leaders of the G-20, made up of the world’s major economies, intend to condemn Russia’s invasion of Ukraine, even as Russian Foreign Minister Sergei Lavrov attends the meeting in Indonesia. “Most members strongly condemned the war in Ukraine, emphasizing that it causes immense human suffering and exacerbates existing vulnerabilities in the global economy – limiting growth, increasing inflation, disrupting supply chains, increasing energy and food insecurity and exacerbating financial stability risks,” a statement said. draft copy of the joint statement said. Meanwhile, Moscow is annoyed that the war in Ukraine is the focus of the summit. Read live war updates here.

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4. Home Depot and Inflation

A Home Depot store in Hyattsville, Maryland, on Feb. 22, 2022.

Stephanie Reynolds | TBEN | Getty Images

DIY storeThe company’s quarterly results beat the top and bottom lines on Tuesday as the watchful home improvement chain reported sales growth compared to the same period last year. The company also stuck to its outlook. “We delivered another solid performance in the third quarter, driven by strong project-related categories across the company,” said CEO Ted Decker. On a more detailed level, however, we can see the impact of four decades of high inflation. The average ticket grew nearly 9% to $89.67, and sales per square foot increased more than 5% to $618.50. But total customer transactions for the quarter fell more than 4% to 409.8 million. We should learn more at 9 a.m. ET, when Home Depot holds its earnings conference call.

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5. A million creditors?

Sam Bankman-Fried, co-founder and CEO of FTX, in Hong Kong, China, on Tuesday, May 11, 2021.

Lamb Yik | Bloomberg | Getty Images

Fallen cryptocurrency exchange FTX could have more than a million creditors, lawyers said in a new filing in the company’s Chapter 11 bankruptcy case. By comparison, on Friday, when FTX first filed, it said it had more than 100,000 creditors. The updated filing was also unflattering to Sam Bankman-Fried, the founder of FTX who resigned as CEO last week as crypto hit the fan. “Questions arose about Mr. Bankman-Fried’s leadership and handling of FTX’s complex array of assets and businesses under his leadership,” lawyers wrote. Another Bankman-Fried company, Alameda Research, had borrowed billions in customer funds from FTX to ensure it could process withdrawals, TBEN previously reported.

– TBEN’s Carmen Reinicke, Melissa Repko, Silvia Amaro, Lillian Rizzo and Ryan Browne contributed to this report.

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