DJIA Futures: +101 (+0.3%)
SPX Futures: +13 (+0.3%)
NASDAQ Futures: +10 (+0.1%)
Good morning friends!
Futures are rising as traders look ahead to a speech by the Fed Chair today.
Let’s get right to it!
Traders are awaiting a speech by Fed Chair Jerome Powell at 11:00 a.m. ET today.
Powell will participate in a panel discussion alongside former Fed Chair Ben Bernanke at the Thomas Laubach Research Conference.
The market is focused on this speech after two Fed officials seemed to put their support behind a June rate hike on Thursday.
Dallas Fed President Lorie Logan said in a speech, “We haven’t yet made the progress we need to make. And it’s a long way from here to 2 percent inflation.”
St. Louis Fed President James Bullard later today the Financial Times, “I do expect disinflation, but it’s been slower than I would have liked, and it may warrant taking out some insurance by raising rates somewhat more to make sure that we really do get inflation under control.”
Bullard added, “Our main risk is that inflation doesn’t go down or even turns around and goes higher, as it did in the 1970s.”
CME Group’s FedWatch Tool still shows 64.4% of traders betting on no rate hike at the June 14 meeting.
Foot Locker (FL) shares are plunging 26.2% ahead of the open after missing Q1 expectations and cutting its full-year outlook.
Here’s how the shoe retailer’s results compared to analysts’ estimates:
Same-store sales dropped 9.1% year over year vs the 7.7% decline expected.
Foot Locker now expects full-year EPS of $2 to $2.25, down from $3.35 to $3.65 previously.
The company also expects full-year sales to fall 6.5% to 8% vs 3.5% to 5.5% previously.
The CEO said, “Our sales have since softened meaningfully given the tough macroeconomic backdrop, causing us to reduce our guidance for the year as we take more aggressive markdowns to both drive demand and manage inventory.”
Deere & Co (DE) shares are rising 3.4% in premarket trade after beating fiscal Q2 expectations on the top and bottom line.
Here’s how the company’s results compared to analysts’ estimates:
Deere hiked its full-year guidance following the beat.
The company now expects net income between $9.25 billion and $9.5 billion this year vs $8.75 billion and $9.25 billion previously.
The CEO said, “As shown by the company’s outstanding second-quarter results, Deere continues to benefit from favorable market conditions and an improving operating environment. Though supply-chain constraints continue to present a challenge, we are seeing further improvement.”