Coffee With Greta: Can Stocks Find a Parachute?

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DJIA Futures: +295 (+0.9%)

SPX Futures: +225 (+1.9%)

NASDAQ Futures: +46 (+1.2%)

Good morning friends!

Futures are higher after the S&P 500 tumbled to its lowest level in more than a year on Monday.

Let’s get right to it!

Stocks Rise, Yields Dip

Stock futures are rising for the first time in 3 days as Treasury yields pull back.

The yield on the 10-year Treasury note fell 10 basis points to 2.98% while the 30-year yield is down 11 basis points to 3.10%.

The rebound comes after the major indexes plummeted on Monday.

The S&P 500 closed below 4,000 for the first time since April 2021, while the Dow shed more than 600 points, and the Nasdaq plunged more than 4%.

Bitcoin Follows Stocks 

Bitcoin is still down 3.6% in the past 24 hours, sitting at $31,800 after plunging more than 10% on Monday and dropping below $31,000.

That was Bitcoin’s lowest level since July 2021. 

Ethereum is up 0.3% at $2,416, after falling more than 11% to under $2,300.

The crypto market has recently been tracking the stock market instead of moving independently of Wall Street.

Peloton Plummets on Huge Loss, Weak Outlook

Peloton (PTON) shares are are plunging 21.4% in premarket trade after reporting a massive fiscal Q3 loss. 

The exercise bike maker reported a loss of $2.27 per share on $964.3 million in revenue. 

That was worse than analysts’ expectations for a loss of $0.83 per share on $972.9 million in revenue. 

The stock is set to open at a fresh all-time low. 

Peloton said it’s seen a steep drop in customer demand as pandemic lockdowns were lifted. 

But it did see higher treadmill sales in the quarter.

Peloton added 195,000 connected fitness subscribers in the quarter, bringing the total to 2.96 million. 

The company forecast fiscal Q4 revenue between $675 million and $700 million vs analysts’ estimates for $821.7 million. 

AMC Rallies on Earnings Beat

AMC Entertainment (AMC) shares are up 3.8% ahead of the open after reporting a narrower Q1 loss than expected. 

The theater chain reported an adjusted loss of $0.52 per share on $785.7 million in revenue. 

That was better than analysts’ expectations for an adjusted loss of $0.63 per share on $743 million in revenue. 

CEO Adam Aron said, “Our results for the first quarter of 2022 represent AMC’s strongest first quarter in two full years.”

AMC had $1.3 billion in available liquidity at the end of Q1.

Novavax Falls on Earnings Miss

Novavax (NVAX) shares are down 26.6% in premarket trade despite reporting its first-ever profitable quarter.

The biotech company reported earnings of $2.56 per share on $704 million in revenue. 

But that was still shy of analysts’ expectations for EPS of $2.69 on $845 million in revenue. 

Novavax touted the “successful” launch of its Covid vaccine globally and said it’s on track to expand its label use. 

The company reiterated its full-year guidance for revenue between $4 billion and $5 billion. 

Upstart Plunges After Cutting Guidance

Upstart Holdings (UPST) shares are plummeting 58.9% ahead of the open after beating Q1 expectations but cutting its full-year outlook. 

The company reported adjusted earnings of $0.61 per share on $310 million in revenue. 

That topped analysts’ expectations for adjusted EPS of $0.53 on $300 million in revenue. 

But Upstart forecast Q2 revenue between $295 million and $305 million vs analysts’ estimates for $335 million.

The company also slashes its full-year outlook, expecting $1.25 billion in revenue vs its previous forecast for $1.4 billion.

Oil Prices Extend Losses

Oil prices are down again today on continued concerns about global economic growth and the strong dollar. 

West Texas Intermediate crude futures are down 0.4% to $102.60 bbl while Brent crude futures are down 0.6% to $105.20 bbl.

Both posted their largest daily decline since March on Monday. 

The energy market is concerned about rising recession risks in the U.S. as the Fed tightens its policy.

Upcoming Economic Data

The National Federation of Independent Business releases its April small business optimism index at 9:00 a.m. ET. 

Economists expect that survey to show optimism among business owners fell by 0.3 points to 92.9 last month. 

Small businesses have been squeezed by rising costs due to inflation as it’s more difficult for them to hike prices compared to large corporations. 

Business owners have also sounded the alarm on the current labor shortage in the U.S. economy.

The New York Fed releases its Q1 report on real household debt at 11:00 a.m. ET.

In Case You Missed It

• Rivian (RIVN) shares plummeted 20.9% Monday after Ford (F) announced plans to sell part of its stake in the electric automaker. The stock hit a record low at $22.45 per share before closing at $22.78. Ford’s sale comes after Rivian’s IPO lockup period expired Sunday. Rivian’s early 2022 stock plunge dented both Ford and Amazon’s (AMZN) Q1 earnings. Rivian reports earnings Wednesday morning.
• The New York Fed’s consumer expectations survey showed a cooldown in inflation forecasts in April. Respondents to the survey said they see inflation at 6.3% 1-year from now. That was down 0.3% from March. But consumers still expect household spending to surge 8% over the next 12 months. 3-year inflation expectations increased by 0.2% in April to 3.9%.