Here are the key events taking place on Wednesday that could impact trading.
A key report could show headline inflation backing off a near 41-year high.
INFLATION WATCH: The Bureau of Labor Statistics is expected to say the consumer price index rose a slight 0.2% month-over-month in July. That’s down sharply from June’s 1.3% spike.
On a year-over-year basis watch for prices to soar 8.7% in July, easing back from June’s much hotter-than-expected 9.1% surge, the highest inflation rate in almost 41 years.
If you factor out volatile food and energy costs, the core consumer price index is anticipated to rise 0.5%, easing from a one-year high of 0.7% in June. Annually, core CPI is forecast to spike 6.1% in July.
SWEETGREEN: Shares tumbled 22% in after-hours trading after the fast casual restaurant chain reported second quarter revenue that missed analysts’ estimates. Revenue rose 45% to $124.9 million. The Wall Street estimate was $130.4 million. Same-store sales rose 16%. The net loss was $40 million, or 36 cents per share. The company cut its workforce by 5% at its support center and moved to a smaller office.
ROBLOX: Shares fell 11% in extended trading after the gaming platform missed estimates for quarterly bookings on Tuesday, as the company faced a slowdown in the pandemic-fueled surge in spending for its games including "Jailbreak" and "Adopt Me!."
The company posted net bookings of $639.9 million in the second quarter, compared with $665.5 million a year earlier. Analysts were expecting net bookings of $644.4 million, according to Refinitiv data. Net loss attributable to common stockholders widened to $176.44 million, or 30 cents per share for the quarter ended June 30, wider than the 25 cents per share estimate.
EARNINGS REPORTS: Earnings season continues with Fox Corporation, the parent of Fox News and Fox Business, reporting ahead of the opening bell. Others reporting include Wendy's and Jack in the Box. In the afternoon the focus will turn to another media giant, Dow member Walt Disney.
INVENTORY REPORT: The Energy Information Administration will release its inventory report for last week. Crude stockpiles are expected to inch up by 73,000 barrels, following a massive surprise build of 4.467 million barrels the previous week. Watch for draws of almost 700,000 barrels in distillate supplies (heating oil, diesel fuel), and nearly 650,000 barrels in gasoline inventories.