Coffee With Greta: Debt Ceiling Drag
DJIA Futures: -115 (-0.4%)
SPX Futures: -18 (-0.4%)
NASDAQ Futures: -76 (-0.6%)
Good morning friends!
Futures are falling as traders continue to monitor ongoing debt ceiling talks in Washington.
Let’s get right to it!
Debt Ceiling Drag
Negotiators are expected to meet again today for talks on a debt ceiling deal.
The meeting comes after little progress was made during talks on Tuesday after House Speaker Kevin McCarthy’s “productive” meeting with the President on Monday.
Lawmakers are facing a June 1 deadline to raise the debt limit or risk a default.
Intuit Drops As Tax Filings Slow
Intuit (INTU) shares are falling 5.5% ahead of the open after missing fiscal Q3 revenue expectations as its tax filing business slowed.
Here’s how the company’s results compared to analysts’ estimates:
- Adjusted EPS: $8.91 vs $8.48 expected
- Revenue: $6.02 billion vs $6.09 billion expected
Intuit blamed the slowdown in its Turbo Tax business on people who chose not to file this year after filing in previous years to receive pandemic-era stimulus and credits.
But the company hiked its full-year guidance.
Intuit expects revenue growth of 12% to 13% in fiscal 2023 up from 10% to 12% previously.
The company also expects full-year adjusted EPS between $14.20 and $14.25, which would represent growth of 20% vs 15% to 17% previously forecast.
Abercrombie & Fitch Surges On Surprise Profit
Abercrombie & Fitch (ANF) shares are surging 17.0% in premarket trade after reporting a surprise Q1 profit and hiking its outlook.
Here’s how the retailer’s results compared to analysts’ estimates:
- Adjusted EPS: $0.39 vs $0.05 loss expected
- Revenue: $836 million vs $815 million expected
Same-store sales rose 3% year over year vs the 1% decline analysts were anticipating.
Abercrombie hiked its full-year guidance after the beat.
The company now expects fiscal 2023 sales growth of 2% to 4% vs 1% to 3% previously.
Abercrombie forecast net sales growth of 4% to 6% in Q2.
Kohl’s Jumps On Surprise Profit
Kohl’s (KSS) shares are rallying 13.1% ahead of the open after reporting a surprise Q1 profit and reiterating its full-year outlook.
Here’s how the retailer’s results compared to analysts’ estimates:
- EPS: $0.13 vs $0.42 loss expected
- Revenue: $3.36 billion vs $3.34 billion expected
Comparable sales fell 4.3% year over year, in line with expectations.
Kohl’s expects full-year net sales to decline between 2% and 4% with EPS between $2.10 to $2.70.
Meta Begins Latest Round of Layoffs
Meta Platforms (META) shares are slipping 0.8% in premarket trade as the company reportedly begins its latest round of layoffs.
About 10,000 total workers will lose their jobs between this month’s cuts and the ones enacted in April.
Reuters first reported the latest round of cuts had started this morning.
Meta employees in user experience, marketing, recruiting, and engineering later announced they had been let go on LinkedIn.
The company has not confirmed the reports but the cuts were announced earlier this year as part of CEO Mark Zuckerberg’s “year of efficiency”.
In Case You Missed It
- New home sales jumped unexpectedly in April as buyers struggle with low existing inventory. The Census Bureau reported new home sales rose 4.1% last month to a seasonally adjusted annual rate of 683,000 units vs 669,000 expected. March sales were revised lower to a rate of 656,000 units. But prices pulled back as rates remain high, the median price of a new home sold in April fell to $420,800.
