Coffee With Greta: Traders Hope For Dovish Fed Minutes


DJIA Futures: -72 (-0.2%)

SPX Futures: -8 (-0.2%)

NASDAQ Futures: -11 (-0.1%)

Good morning friends!

Futures are slipping as traders look ahead to the Fed minutes and wait to find out whether the bank’s last meeting turned dovish. 

Let’s get right to it!

Nordstrom Reports Surprise Q3 Loss

Nordstrom (JWN) shares are falling 8% ahead of the open after reporting a surprise Q3 loss and lower revenue. 

The company blamed the $20 million loss on “supply-chain impairments”.

Here’s how the retailer’s results compared to analysts’ expectations:

  • Loss per share: $0.13 vs $0.11 EPS expected
  • Revenue: $3.43 billion vs $3.49 billion expected

Nordstrom reaffirmed its 2022 guidance for revenue growth of 5% to 7% and adjusted EPS between $2.30 and $2.60.

HP Announces Global Layoffs

HP Inc (HPQ) shares are up 2.9% in premarket trade after announcing layoff plans following lower fiscal Q4 sales.

Here’s how the computer maker’s results compared to analysts’ expectations:

  • Adjusted EPS: $0.85 vs $0.84 expected
  • Revenue: $14.8 billion vs $14.69 billion expected 

Revenue dropped 11% year over year and unadjusted net income swung to a $2 million loss from profit of $3.10 billion a year earlier. 

HP forecast fiscal Q1 adjusted EPS of $0.70 to $0.80 vs analysts’ estimates of $0.86. 

The company expects full-year adjusted EPS of $3.20 to $3.60 and free cash flow of $3 billion to $3.5 billion. 

Analysts were expecting EPS of $3.54 and free cash flow around $3.88 billion. 

HP announced it plans to cut up to 10% of its workforce following those results. 

The layoffs will impact 4,000 to 6,000 employees globally over the next three years.

The company said its “Future Ready Transformation plan” should save it $1.4 billion or more over that three year time period.

Weekly Jobless Claims Jump to 3-Month High

Weekly jobless claims rose to the highest level since August last week. 

The Labor Department reported 240,000 Americans filed initial claims for unemployment benefits. 

That was up 17,000 from the previous week and higher than expectations for 225,000. 

Continuing claims also rose by 50,000 to 1.55 million in the week ending November 12. 

Mortgage Demand Jumps As Rates Dip

Mortgage demand rose last week as rates declined slightly. 

The Mortgage Bankers Association reported overall applications rose 2.2% on a weekly basis.

Purchase applications rose 3% weekly but were still down 41% year over year. 

Refinance application rose 2% weekly and were still 86% lower than a year ago. 

The gains came as rates eased last week. 

The average 30-year contract rate decreased to 6.67% from 6.90%.

Busy Day of Data

Traders will get a rush of economic data today ahead of the stock market closure for Thanksgiving on Thursday. 

S&P Global releases its November manufacturing and services PMIs at 9:45 a.m. ET. 

The University of Michigan’s final November consumer sentiment index and consumer inflation expectations survey will be released at 10:00 a.m. ET. 

The Census Bureau reports October new home sales at 10:00 a.m. as well. 

And then the Fed releases the minutes of its November meeting at 2:00 p.m. ET. 

Traders are looking for signs of the Central Bank turning dovish as recent data has shown inflation cooling in the wake of the bank’s rate hikes. 

Leave a Comment: