Coffee With Greta: Losing Week
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DJIA Futures: -194 (-0.6%)
SPX Futures: -34 (-0.8%)
NASDAQ Futures: -160 (-1.1%)
Good morning friends!
Futures are lower as stocks are headed for a losing week.
Let’s get right to it!
Yields Slip After Fed Speakers
Treasury yields are down this morning as investors digest recent comments from several Fed speakers.
The 2-year yield is down 9 basis points to 4.71% while the 10-year yield is down 9 basis points to 3.71%.
In Congressional testimony this week, Fed Chair Jerome Powell reiterated the bank’s plans for additional rate hikes this year.
Fed Governor Michelle Bowman echoed those comments on Thursday saying she believes rates need to move higher to become “sufficiently restrictive”.
More Fed officials are set to speak today including St Louis Fed President James Bullard and Cleveland Fed President Loretta Mester.
CarMax Jumps On Earnings Beat
CarMax (KMX) shares are up 6.9% ahead of the open after beating Q1 expectations on the top and bottom line.
Here’s how the used car retailer’s results compared to analysts’ estimates:
- Adjusted EPS: $1.16 vs $0.79 expected
- Revenue: $7.69 billion vs $7.49 billion expected
Comparable-store sales declined 11.4% year over year, improving from 22.4% in Q3 and 14.1% in Q4.
Starbucks Dips As Workers Plan To Strike
Starbucks (SBUX) shares are down 1.8% in premarket trade as the Starbucks Workers United says some employees are planning to strike starting today.
The union says more than 150 stores representing nearly 3,500 workers have pledged to join the strikes.
The demonstrations come after the union alleged dozens of stores in the U.S. were not allowing workers to decorate for Pride month.
But the company said in a statement, “There has been no change to any policy on this matter and we continue to encourage our store leaders to celebrate with their communities including for U.S. Pride month in June.”
Starbucks added, “Workers United continues to spread false information about our benefits, policies and negotiation efforts—a tactic used to seemingly divide our partners and deflect from their failure to respond to bargaining sessions for more than 200 stores.”
Virgin Galactic Tumbles After Stock Offering
Virgin Galactic (SPCE) shares are tumbling 13.2% ahead of the open after announcing it raised $300 million via an “at the market” common stock offering.
That was revealed in a securities filing on Thursday.
The company also said it is aiming to raise an additional $400 million through a subsequent offering.
The money will be used to fund the development and expansion of Virgin Galactic’s spacecraft fleet.
In Case You Missed It
- Existing home sales rose unexpectedly in May. The National Association of Realtors reported Thursday that existing sales rose 0.2% to a seasonally adjusted annual rate of 4.3 million units. That was better than expectations for 4.25 million. The median price of an existing home sold last month dropped 3.1% to $396,100, the largest decline since December 2021. Sales were down 20.4% year over year.
