Investing.com — Wall Street appears poised for minor gains at the start of the day as investors eagerly anticipate the release of the minutes from the most recent Federal Reserve meeting and nonfarm payroll revisions. Gold prices continue to reach record highs, while retail giant Walmart is looking to divest its stake in Chinese e-commerce company JD.com.
### Fed minutes, payrolls revision to provide rate cuts insight
Investors are eagerly awaiting the release of the minutes from the last Federal Reserve meeting to gain further insight into the potential for an upcoming rate cut and its magnitude. While the Fed kept rates steady in late July, comments from officials have hinted at an imminent rate reduction. Federal Reserve Governor Bowman cautioned against unnecessary interest rate cuts but suggested that lowering the federal funds rate gradually may be necessary if inflation continues to see progress.
Additionally, preliminary revisions to U.S. payrolls data are expected to be released, with analysts predicting a significant downward revision. This revision could further support the case for cutting interest rates, indicating that the labor market may not be as robust as previously thought.
### Futures edged higher ahead of Fed minutes
U.S. stock futures inched higher prior to the release of the Fed meeting minutes and payrolls data revisions, as investors look for clues on the timing of potential interest rate cuts. The slight gains in futures come after Wall Street indices closed with minor losses on Tuesday.
In the corporate sector, companies like Toll Brothers and Keysight Technologies saw premarket gains following positive earnings reports, adding to the overall market sentiment.
### Walmart to sell stake in JD.com
Walmart has opted to sell its stake in JD.com, a move aimed at focusing on its own operations in China. By divesting its stake in the e-commerce firm, Walmart seeks to redirect capital towards other priorities while strengthening its presence in the Chinese market.
Despite the decision to sell its JD.com stake, Walmart reported a significant increase in revenue from its China business, showcasing strong growth in different segments. This move aligns with Walmart’s strategic shift and ongoing efforts to thrive in the competitive Chinese market.
### More retail earnings in focus
As the U.S. earnings season nears its end, retail sector earnings remain a focal point for investors. Retail giants like Target and TJX Companies are set to release quarterly results, with market watchers paying close attention to back-to-school sales figures.
The retail landscape continues to face challenges, as evidenced by Lowe’s recent cut in full-year forecasts. With the majority of S&P 500 companies having reported earnings, the results have been mixed, with companies surpassing profit estimates but falling short on revenue targets.
### Gold close to record highs
Gold prices have maintained near record highs, benefitting from the prospect of lower U.S. interest rates and global geopolitical tensions. The recent surge in gold prices can be attributed to multiple factors, including reduced opportunity costs of investing in non-yielding assets, geopolitical uncertainty, and concerns over significant budget deficits in major economies.
Furthermore, the current political climate in the U.S. with proposed policy changes has also contributed to gold’s rise, as investors seek safe-haven assets amid economic uncertainties. Gold remains an attractive option for investors looking to hedge against market volatility and political risks.
