News & Observer | newsobserver.com | Today in business

Published: May 13, 2008 12:30 AM
Modified: May 13, 2008 04:02 AM

Today in business

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Investors will look to consumers for clues about the economy when the world's largest retailer posts results, and the Commerce Department releases April retail sales data. Federal Reserve Chairman Ben Bernanke may also offer insight on the economy's health and the direction that interest rates are headed.

WAL-MART EARNINGS

Last week, the world's largest retailer said sales of groceries and flat-screen TVs lifted April same-store sales above Wall Street expectations.

Buckingham Research Group analyst John Zolidis says new stores appeared productive during the quarter, and he expects the weak dollar to help first-quarter results. In the fourth quarter, stores in 13 countries outside the United States accounted for 25 percent of sales, versus 23 percent a year earlier.

Wal-Mart's outlook is for profit of 74 cents to 76 cents per share.

RETAIL SALES

When the Commerce Department reports April retail sales, economists predict a decline compared with the prior month.

But Thomson Reuters/ IFR economist Jeoff Hall said their estimate may be too pessimistic, because the economy only lost 20,000 jobs last month, which was smaller than in recent periods. Fewer job cuts mean consumers have more money to spend.

FED CHIEF SPEAKS, AND PEOPLE LISTEN

When Fed Chairman Ben Bernanke speaks today, he may offer hints on what's in store for the economy. There has been speculation that the Fed's rate reduction of a quarter point on April 30 might be the last in a series of cuts that began in September.

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