Here are the key events taking place on Friday that could impact trading.
PRODUCER PRICES: The Bureau of Labor Statistics is expected to say that PPI rose 0.2% month-over-month in November according to Refinitiv forecasts.
That’s unchanged from October’s cooler-than-expected print.
Year-over-year, prices paid by wholesalers are anticipated to jump 7.2%, down sharply from an 8.0% pop in October and the fifth straight month of slowing growth.
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It would also be the lowest reading since May 2021, supporting the peak inflation theme and cementing expectations for smaller Fed rate hikes.
If you exclude food and energy costs, core producer prices are also anticipated to rise 0.2% monthly in November after remaining flat the prior month. Year-over-year look for growth in core PPI to cool to 5.9% in November, the lowest since June 2021 and the eighth straight month of slowing growth from a record 9.7% surge in March.
CONSUMER SENTIMENT: The University of Michigan releases its preliminary index of consumer sentiment for December. It’s expected to inch higher to 56.9 after falling more than expected in November on inflation worries and rising interest rates.
Consumer sentiment tumbled to an all-time low of 50.0 in June when record-high gasoline prices had consumers panicked about inflation.
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BROADCOM: Shares traded 3% higher in extended trading after the company forecast current-quarter revenue above Wall Street estimates, signaling strong demand for chips used in data centers and networking equipment, according to Reuters.
The company forecast first-quarter revenue of about $8.9 billion, compared with analysts’ estimates of $8.78 billion, according to Refinitiv data.
Revenue rose 21% to $8.93 billion in the fourth quarter ended Oct. 30. Analysts on average had expected revenue of $8.90 billion.
DOCUSIGN: Shares jumped 10% in extended trading after profit and revenue topped expectations.
The company reported a loss of $29.9 million in its fiscal third quarter.
The San Francisco-based company said it had a loss of 15 cents per share. Earnings, adjusted for one-time gains and costs, were 57 cents per share.
The results beat Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 41 cents per share, according to the Associated Press.
The provider of electronic signature technology posted revenue of $645.5 million in the period, also topping Street forecasts. Seven analysts surveyed by Zacks expected $626.1 million.
LULULEMON ATHLETICA: Shares fell more than 7% in extended trading after the company forecast holiday-quarter revenue and profit largely below analysts’ estimates, as shoppers turn cautious about spending.
Lululemon lifted its full-year revenue and profit forecasts and beat estimates for third-quarter results, according to Reuters.
Comparable-store sales missed estimates.
The company forecast fourth-quarter revenue between $2.61 billion and $2.66 billion, compared to analysts’ estimates of $2.65 billion, according to IBES data from Refinitiv.
Lululemon sees current-quarter profit between $4.20 and $4.30 per share, while analysts estimate $4.30.
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