Coffee With Greta: Inflation Week
DJIA Futures: +117 (+0.4%)
SPX Futures: +20 (+0.5%)
NASDAQ Futures: +74 (+0.7%)
Good morning friends!
Futures are rising as a new week of trade begins and traders look ahead to key inflation data.
Let’s get right to it!
Inflation In Focus
Inflation is on the brain as traders will get the final CPI reading for 2022 later this week.
The key data coming out today is also focused on inflation.
The New York Fed releases its December survey of consumer expectations at 11:00 a.m. ET.
The market will be focused on the 1-year and 5-year inflation expectations in that report.
On Tuesday, Fed Chair Jerome Powell is set to speak in Sweden at 9:00 a.m. ET.
The Bureau of Economic Analysis releases the December CPI and core CPI at 8:30 a.m. ET on Thursday.
And the week will round out on Friday with the University of Michigan’s January consumer sentiment index and inflation expectations.
The December jobs report showed wage-side inflation pressures easing up.
That caused a big rally on Wall Street with traders anticipating the Fed may pause rate hikes earlier than previously planned.
Duck Creek Technologies Skyrockets
Duck Creek Technologies (DCT) shares are surging 45.3% ahead of the open after reaching a takeover deal with private firm Vista Equity Partners.
Vista will pay $19 per share in cash for Duck Creek, valuing the insurance tech firm at about $2.6 billion.
Trading has been halted on the stock at $18.87 per share.
The deal is a 68% premium to Friday’s closing price of $11.28 per share.
Lululemon Slides After Revising Q4 Guidance
Lululemon (LULU) shares are sliding 10.2% in premarket trade after the company revised its Q4 guidance.
The athleisure apparel retailer now expects gross margins in Q4 to decline by 90 to 110 basis points.
That’s down from previous expectations for margins to improve by 10 to 20 basis points.
But the company raised its Q4 net revenue guidance to a range of $2.66 billion to $2.70 billion vs $2.61 billion to $2.66 billion previously.
Energy Stocks Gain As Oil Prices Rise
Oil prices are higher this morning on demand optimism in China.
West Texas Intermediate crude futures are up 3.3% to over $76 bbl while Brent crude futures are up 3% to just under $81 bbl.
China reopened its borders over the weekend as part of its continued efforts to ease Covid restrictions.
About 2 billion domestic trips for the Lunar New Year season are expected this year, nearly double last year.
The Energy Select Sector SPDR ETF (XLE) is up 1.7% ahead of the open.
Bed Bath & Beyond Rebounds
Bed Bath & Beyond (BBBY) shares are jumping 16.8% in premarket trade as the company looks to bounce back from last week’s major drop.
The threat of bankruptcy is looming overhead as the struggling home goods retailer prepares to report earnings Tuesday morning.
Bed Bath & Beyond warned last week it expects to report lower sales than analysts are anticipating.
The company also said it has “substantial doubt” about its “ability to continue as a going concern.”