Japan slumps; Starbucks doubles down in China; Macy's earnings

1. Japan's growth streak ends: The world's third biggest economy contracted at an annualized rate of...

Posted: May 16, 2018 12:24 PM
Updated: May 16, 2018 12:24 PM

1. Japan's growth streak ends: The world's third biggest economy contracted at an annualized rate of 0.6% in the first quarter of 2018, according to government data published Wednesday.

The slump follows eight consecutive quarters of growth, the longest expansion Japan has achieved since the late 1980s.

The GDP reading was worse than expected, but some economists said Japan may be able to dodge a recession -- usually defined as two consecutive quarters of negative growth.

Marcel Thieliant, senior Japan economist at Capital Economics, said rising wages are supporting consumer spending, while manufacturing and industrial production remain strong.

"Even though firms' forecasts for industrial output for April and May are mediocre, industrial output should continue to recover. The upshot is that GDP should have returned to growth" in the second quarter, he wrote in a note.

2. Macy's earnings: Macy's will report first quarter earnings before the opening bell on Wednesday.

Macy's has had a hard time competing with online retailers and has recently embarked on a transformation. It has been selling real estate, shutting stores and investing in digital.

The effort has paid off: sales climbed last quarter, and the stock has risen almost 19% this year.

The sector could be improving too: The US government said Tuesday retail sales grew at a healthy pace in April. At the same time, relatively weak sales data for February and March were revised higher.

3. Starbucks in China: Starbucks is planning to build nearly 3,000 new stores in mainland China over the next few years, the company said on Wednesday.

It's aiming to almost double its number of coffee shops in the world's second largest economy, from 3,300 at the moment to 6,000 before the end of 2022.

Starbucks is hoping to triple its revenue and double its operating profit in China between 2017 and 2022.

4. Global market overview: US stock futures were pointing up early on Wednesday.

European markets opened higher, while stocks in Asia ended the session mixed.

Oil prices were slightly lower early on Wednesday, with US crude futures trading at just above $71 per barrel.

The Dow Jones industrial average and the Nasdaq both slumped 0.8% on Tuesday, while the S&P 500 closed 0.7% lower. The fall in the Dow marked the end of an eight-day winning streak and flipped the index back to the red for the year.

The 10-year Treasury yield spiked to its highest level since 2011 as concerns about inflation drove a sell-off in bonds. The 10-year yield helps determine how much it costs to borrow money, including mortgages, car loans and credit card rates.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

5. Earnings and economics: Cisco Systems and Jack In The Box are set to release earnings after the closing bell on Wednesday.

The Census Bureau plans to release its April Housing Starts report at 8:30 a.m. ET.

Eurozone inflation data will be published at 5 a.m. ET. Mario Draghi, the president of the European Central Bank, will deliver a speech at 8 a.m. ET in Frankfurt.

Markets Now newsletter: Get a global markets snapshot in your inbox every afternoon. Sign up now!

6. Coming this week:
Wednesday - Macy's earnings
Thursday - JCPenney, Nordstrom earnings
Friday - Campbell Soup earnings

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 49575

Reported Deaths: 2739
CountyConfirmedDeaths
Marion11812690
Lake5337247
Elkhart343257
Allen2867133
St. Joseph202569
Cass16439
Hamilton1629101
Hendricks1439100
Johnson1306118
Porter78038
Tippecanoe7439
Clark67144
Madison66864
Vanderburgh6296
LaPorte59727
Bartholomew59245
Howard58258
Kosciusko5654
Marshall5217
Noble49128
LaGrange4829
Jackson4773
Delaware46052
Boone45944
Hancock45736
Shelby43425
Floyd39144
Morgan32831
Monroe31528
Grant30226
Montgomery29720
Henry29316
Dubois2906
Clinton2882
White26810
Decatur25532
Lawrence25125
Dearborn24723
Vigo2408
Warrick23229
Harrison21722
Greene19132
Miami1892
Jennings17912
Putnam1708
DeKalb1634
Scott1628
Daviess15017
Wayne1496
Perry1409
Orange13623
Steuben1332
Franklin1278
Jasper1252
Ripley1247
Wabash1152
Carroll1122
Fayette1037
Gibson1032
Newton9910
Whitley995
Starke963
Huntington822
Randolph804
Wells791
Jefferson782
Fulton731
Jay680
Washington671
Pulaski661
Knox650
Clay644
Rush603
Owen511
Adams491
Posey490
Benton480
Spencer461
Sullivan451
Brown421
Blackford392
Fountain332
Crawford320
Tipton311
Switzerland280
Parke240
Martin220
Ohio210
Vermillion170
Warren151
Union130
Pike110
Unassigned0193

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 61331

Reported Deaths: 3006
CountyConfirmedDeaths
Franklin11122439
Cuyahoga8518383
Hamilton6396206
Lucas2859304
Marion273739
Montgomery228335
Summit2269209
Pickaway220641
Mahoning1885239
Butler172147
Columbiana132460
Stark1171114
Lorain107368
Trumbull101474
Warren91825
Clark78410
Delaware64515
Fairfield61417
Tuscarawas59010
Belmont55822
Lake55122
Medina54832
Licking53612
Miami48631
Portage47759
Wood46151
Ashtabula43844
Clermont4367
Geauga41543
Wayne36752
Richland3595
Allen33841
Greene3009
Mercer29410
Erie26022
Darke25326
Holmes2524
Huron2342
Madison2069
Ottawa16124
Sandusky14215
Washington14220
Crawford1375
Ross1363
Putnam13315
Coshocton1323
Hardin12312
Morrow1201
Auglaize1094
Jefferson952
Muskingum921
Union921
Athens911
Monroe8917
Hancock841
Preble811
Hocking798
Lawrence790
Guernsey763
Shelby724
Williams722
Clinton700
Logan661
Fulton650
Ashland621
Wyandot615
Carroll603
Brown591
Scioto560
Defiance543
Knox531
Fayette510
Highland471
Champaign461
Van Wert430
Perry401
Seneca362
Henry320
Jackson270
Paulding270
Pike270
Adams241
Vinton222
Gallia201
Noble130
Harrison121
Meigs120
Morgan110
Unassigned00
Fort Wayne
Broken Clouds
79° wxIcon
Hi: 83° Lo: 65°
Feels Like: 81°
Angola
Overcast
75° wxIcon
Hi: 78° Lo: 64°
Feels Like: 75°
Huntington
Overcast
78° wxIcon
Hi: 78° Lo: 64°
Feels Like: 80°
Decatur
Broken Clouds
77° wxIcon
Hi: 81° Lo: 65°
Feels Like: 79°
Van Wert
Broken Clouds
77° wxIcon
Hi: 84° Lo: 65°
Feels Like: 79°
Breezy, Sunny Saturday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events