Producer prices, Fed minutes and more: Wednesday's 5 things to know
Traders will be watching for reaction to Intel's potential jobs cuts and also El Polo Loco's special dividend and share buyback
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Here are the key events taking place on Wednesday that could impact trading.
PRODUCER PRICES: The Bureau of Labor Statistics will report wholesale inflation for September. The producer price index is expected to rise 0.2% month-over-month according to Refinitiv forecasts.
PPI sliped 0.1% in August. Year-over-year, prices paid by wholesalers are anticipated to jump 8.4%, down from 8.7% in August and the third straight month of slowing growth.
It would also be the lowest reading since July 2021, possibly easing rekindled inflation fears. If you exclude food and energy costs, core producer prices are anticipated to rise 0.3% monthly in September, trailing August’s 0.4% gain.
AS INFLATION RAGES, MORE AMERICANS ARE STRUGGLING TO PAY THEIR BILLS
A worker at a factory is holding in his hands a pipe tool. (iStock / iStock)
Year-over-year look for growth in core PPI to hold steady at 7.3% in September, the sixth straight month of flat to slowing growth after a record 9.7% surge in March.
FED MINUTES: The minutes of the last Federal Reserve meeting will be released in the afternoon. The central bank raised its benchmark interest rate by 75 basis points for the third straight month in September, as it struggles to bring scorching-hot inflation under control.
INTEL JOBS: The semiconductor manufacturer is reportedly planning a major reduction in its workforce, as the company looks to cut costs and deal with a slowdown in the personal computer market, according to Bloomberg.
Intel logo and semiconductors (istock / iStock)
The layoffs will be announced as early as this month, possibly in connection with its third-quarter earnings report on Oct. 27.
As of July, the chipmaker had 113,700 employees.
Some divisions, including Intel’s sales and marketing group, could see cuts affecting about 20% of staff, according to people familiar with the situation.
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Intel declined to comment in an email to FOX News Digital.
Intel is facing a steep decline in demand for PC processors.
EL POLO LOCO: Shares traded 14% higher in after hours trading. The nation’s leading fire-grilled chicken restaurant chain declared a special dividend of $1.50 per share and a program to buy back up to $20 million shares.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
The repurchase program which will terminate on March 28, 2024, may be suspended or discontinued at any time and does not obligate the Company to acquire any particular number of shares.
El Pollo Loco is down 37% year to date.
Pepsi products are displayed for sale in a Target store in Los Angeles, California. (Photo by Mario Tama/Getty Images / Getty Images)
EARNINGS REPORTS: The beverage and snack giant PepsiCo and the aluminum producer Alcoa kick off earnings season.
Property and casualty insurer Progressive and investment manager BlackRock report on Thursday.
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On Friday morning, diversified banking giants JPMorgan Chase, Wells Fargo and Citigroup, and investment bank Morgan Stanley will be the highlights.