Coffee With Greta: The Destruction Continues, Yields Spike
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DJIA Futures: -364 (-1.1%)
SPX Futures: -59 (-1.4%)
NASDAQ Futures: -232 (-1.8%)
Good morning friends!
Futures are tumbling, extending last week’s rout as Treasury yields rise.
Let’s get right to it!
Yields Rally
U.S. Treasury yields are on the rise amid new concerns about inflation and slowing economic growth.
The 10-year Treasury yield hit the highest level since November 2018, jumping to 3.185% this morning.
The yield on the 30-year bond jumped to 3.293%.
Yields have spiked since the Fed decision last week as the market worries the bank’s actions against inflation will cause a recession.
Bitcoin Is Still Tumbling
Bitcoin prices kept sliding over the weekend after the crypto market fell alongside the stock market last week.
Bitcoin is down 4.9% in the past 24 hours at $32,995.
That’s the lowest level since July 2021 and down more than 50% from its peak at $68,990.90 in November.
Ethereum is down 6.3% at $2,400.
XRP is down 6.2% at $0.53 and Dogecoin has fallen 6.8% to $0.11.
The global crypto market cap has lost 5.6% in the past 24 hours, falling to $1.59 trillion.
Tyson’s Price Hikes Boost Earnings
Tyson Foods (TSN) shares are up 2.7% ahead of the open after beating fiscal Q2 expectations.
The meat company reported adjust earnings of $2.29 per share on $13.1 billion in revenue.
That topped analysts’ expectations for adjusted EPS of $1.89 on $12.8 billion in revenue.
Tyson said the average sales price of its products rose last quarter “due to the effects of pricing initiatives in an inflationary cost environment.”
Beef revenue jumped 23.8% year-over-year, pork sales jumped 10.8%, chicken revenue was up 14.4%, and sales of prepared foods rose 15.9%.
Tyson hiked its full-year revenue forecast to between $52 billion and $54 billion from $49 billion to $51 billion previously.
Palantir Misses Q1 Expectations
Palantir Technologies (PLTR) shares are tumbling 14.9% in premarket trade after missing Q1 expectations.
The company reported adjusted earnings of $0.02 per share on $446.4 million in revenue.
That was weaker than the company’s own forecast for revenue of $447 million and weaker than analysts’ expectations for adjusted EPS of $0.04.
Commercial revenue rose 54% year-over-year to $205 million, topping analysts’ estimates for $193 million.
Palantir expects Q2 revenue of at least $470 million vs consensus estimates for $484 million.
The company reiterated its long-term forecast for annual revenue growth of 30% or better through 2025.
BioNTech Earnings Boosted by Covid Vaccine Sales
BioNTech (BNTX) shares are up 1.1% ahead of the open as strong Covid vaccine sales boosted its Q1 earnings.
The German pharmaceutical company reported earnings of €14.24 per share on €6.37 billion in revenue.
That topped analysts’ expectations for EPS of €9.16 on €4.34 billion in revenue.
The company said the revenue jump “was mainly due to increased commercial revenues from the supply and sales of the company’s Covid-19 vaccine worldwide.”
BioNTech reiterated its full-year outlook for Covid vaccine revenue between €13 billion to €17 billion.
Oil Prices Tumble
Oil prices are falling as a strong U.S. dollar weighs on the market and Covid lockdowns in China prompt demand worries.
West Texas Intermediate crude futures are down 2.3% to $107 bbl while Brent crude futures are down 2.1% to $110 bbl.
The dollar hit a 20-year high, making oil more expensive for foreign currency holders.
The EU is still working to secure a unanimous vote on its proposed Russian oil ban.
The G7 nations pledged to join the bloc in that action over the weekend and Japan’s prime minister said his country would ban Russian crude imports “in principle”.
Inflation Week
The market got rocked by a Fed rate hike and big economic data last week and more is on the way this week.
The Bureau of Labor Statistics releases the April consumer price index Wednesday morning followed by the producer price index Thursday morning.
Traders will be focused on that data to see if inflation has peaked.
Although headline inflation pressures soared in March, the core CPI and PPI both came in weaker than expected.
That prompted optimism that inflation may start trending downward soon.
The Fed also believes inflation may have peaked and will start to cool in the months ahead.
The New York Fed’s 1-year and 3-year consumer inflation expectations will be released today at 11:00 a.m. ET.
In Case You Missed It
- Peloton (PTON) shares hit a record-low at $14.70 on Friday amid investor uncertainty about the company’s turnaround plans. The exercise bike maker is scheduled to report earnings ahead of the open Tuesday morning. PTON shares are down 2.4% in premarket trade.
