Coffee With Greta: Stocks Slip While Yields Pop


DJIA Futures: -31 (-0.1%)

SPX Futures: -10 (-0.2%)

NASDAQ Futures: -59 (-0.5%)

Good morning friends!

Futures are slipping as traders gear up for a busy week of earnings and economic data. 

Let’s get right to it!

Yields Pop Higher

Treasury yields are rising again today after the bond market was closed on Friday. 

The 2-year yield is up 9 basis points to 4.41% while the 10-year yield is up 4 basis points to 3.88%. 

Traders are looking ahead to the release of the New York Fed’s Survey of Consumer Expectations at 11:00 a.m. ET today. 

That survey includes consumers’ 1-year and 5-year expectations for inflation. 

Busy Week of Data

Traders will get more insight into the inflation picture this week as well as some other key data on the housing market. 

The Bureau of Labor Statistics releases its October producer price index Tuesday morning while the New York Fed releases its November manufacturing index at the same time. 

Then the Commerce Department reports October retail sales Wednesday morning.

The National Association of Homebuilders November sentiment index comes out later on Wednesday. 

The Census Bureau then reports October housing starts and building permits Thursday morning.

And finally the National Association of Realtors reports October existing home sales on Friday. 

Key Retail Earnings Ahead

The biggest retailers in the U.S. report Q3 earnings this week.

Walmart (WMT) and Home Depot (HD) report ahead of the open on Tuesday. 

Then Target (TGT) and Lowe’s (LOW) report Wednesday morning. 

Macy’s (M) and Kohl’s (KSS) report Thursday morning with Gap (GPS) after the close. 

And then Foot Locker (FL) on Friday morning. 

Retail earnings have been key to gauge the impact of inflation on consumer activity.

The market will be focused on future guidance from these retailers.

Oil Prices Drop Amid China’s Covid Surge

Oil prices are falling today on demand concerns as Covid cases surge in China.

West Texas Intermediate crude futures are down 1.2% to under $88 bbl while Brent crude futures are down 1% to just under $95 bbl. 

Beijing and other big cities across China reported record new Covid infections today after easing restrictions last week. 

Tyson Tops Q4 Sales Expectations

Tyson Foods (TSN) shares are up 1.7% ahead of the open after reporting stronger than expected Q4 sales. 

Here’s how the meat processor’s results compared to analysts’ expectations:

  • Adjusted EPS: $1.63 vs $1.70 expected
  • Revenue: $13.7 billion vs $13.5 billion expected

The CEO said, “We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein.”

Average prices rose 5.1% overall with chicken prices jumping 18.2% while beef prices fell 8.2%. 

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