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Investors Focus on Unemployment, Inflation for Q3

The second quarter earnings season had its second busiest week, with 155 S&P 500 companies reporting. One of the more intriguing anomalies from this earnings season was companies reporting earnings that were higher than consensus estimates rather than lower. 

Traders and analysts are now watching the effects of inflation and unemployment as we approach the last month of the third quarter. 

Here are our pick two earnings of the day.

Estee Lauder Companies, Inc.

When Estee Lauder Companies Inc. EL reports fourth-quarter fiscal 2022 earnings on August 18, it is expected to show a drop in both the top and bottom lines. The consensus estimate for quarterly revenues is $3,444 million, implying a 12.5% decrease from the prior-year quarter figure. 

The consensus revenue estimate for fiscal 2022 is $17,622 million, representing an 8.7% increase over the previous year’s reported figure. 

Macy’s Inc

Macy’s Inc is expected to report earnings before the market opens on August 23, 2022. The report will cover the fiscal quarter that ends in July 2022.

The consensus EPS forecast for the quarter is $0.86, according to analyst estimates. Last year, the reported EPS for the same quarter was $1.29. 

Australia Employment Change

The Jobs and Skills Summit (the Summit) to be held on September 1 and 2 in Canberra will bring together Australians from all walks of life, including unions, employers, civil society, and government, to discuss common economic challenges and propose both short-term and long-term solutions. 

The Summit’s goal is to find common ground on how Australia can build a larger, better-trained, and more productive workforce, raise real wages and living standards and expand opportunities for more Australians. 

Australia Unemployment Rate

Unemployment rate decreased to 3.4% which is the lowest in nearly 50 years.. However, this encouraging sign of the country’s strong economy also reflects a growing labour shortage, which has forced some businesses to take on less work or even close due to a lack of staff. 

The Business Council of Australia has urged the federal government to make it easier and faster for skilled migrants to be hired and gain permanent residency. 

US Unemployment Claims

The number of Americans who applied for unemployment benefits increased last week to the highest level since November, despite the fact that the U.S. job market remains strong. 

The Labor Department reported Thursday that applications for unemployment benefits increased by 14,000 to 262,000, bringing the total to 262,000 in five of the last six weeks. 

The number of Americans receiving traditional unemployment benefits increased by 8,000 in the week ending July 30, reaching 1.43 million, the highest level since early April.

US Existing Home Sales

In the last two years, new homes have experienced the same record price appreciation as the overall market. The annual appreciation for new home prices in June was 17%, which was only slightly lower than the 20% for existing homes.

Nationally, new home sales have fallen by more than 13% in each month of 2022. The current decline is most likely due to decreased demand for homes as interest rates rise.

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.