Coffee With Greta: Market Shakes Off Hot CPI


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DJIA Futures: +100 (+0.3%)

SPX Futures: +10 (+0.2%)

NASDAQ Futures: +21 (+0.1%)

Good morning friends!

Futures are higher after the release of the September CPI.

Let’s get right to it!

Rising Shelter Costs Drive Hot CPI

Headline inflation pressures rose slightly more than expected in September. 

The Bureau of Labor Statistics’ consumer price index rose 0.4% monthly and 3.7% year over year vs 0.3% monthly and 3.6% annually expected. 

That was driven mostly by higher shelter costs which jumped 0.6% monthly and 7.2% annually. 

Gas prices continued to rise as well, up 2.1% monthly and 3% from a year ago. 

The core CPI, which excludes food and energy prices, rose 0.3% monthly and 4.1% annually, in line with expectations. 

That was the lowest core reading since September 2021.

Jobless Claims Flat

Weekly jobless claims were unchanged last week. 

The Labor Department reported 209,000 Americans filed initial claims for unemployment benefits, lower than expectations for claims to rise by 3,000 to 210,000. 

The previous week was revised higher by 2,000 to 209,000. 

This is the fourth straight week claims have been under 210,000.

Continuing claims rose by 30,000 to 1.702 million vs 1.676 million expected in the week ending September 30.

Delta Jumps On Strong Summer Quarter

Delta Airlines (DAL) shares are up 2.7% ahead of the open after beating Q3 profit expectations.

Here’s how the airline’s results compared to analysts’ estimates: 

  • Adjusted EPS: $2.03 vs $1.95 expected
  • Revenue: $14.55 billion vs $14.56 billion expected

Revenue was up 13% year over year while profit surged 59%. 

Delta’s flights were 88% full during the quarter, up 1% from a year ago. 

But unit revenue fell 1.5% due to lower airfares. 

Delta saw a surge in international travel demand during the quarter, with trans-Atlantic trip revenue up 34% year over year. 

For the fourth quarter, the airline estimated revenue will rise 9% to 12% with EPS between $1.05 and $1.30. 

Delta trimmed its full-year forecast, now expecting adjusted EPS of $6 to $6.25 vs $6 to $7 previously and free cash flow of $2 billion vs the prior $3 billion forecast.

Walgreens Rises Despite Earnings Miss

Walgreens Boots Alliance (WBA) shares are rising 1.7% in premarket trade despite missing fiscal Q4 profit expectations and issuing soft guidance. 

Here’s how the retail pharmacy giant’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.67 vs $0.69 expected
  • Revenue: $35.42 billion vs $34.78 billion expected

Revenue rose roughly 9% year over year. 

Sales in the U.S. retail pharmacy segment rose 3.7%, pharmacy sales rose 6.4%, and international sales jumped 12%.

But total prescriptions filled fell by 0.5% and retail sales declined 4.3%.

Walgreens forecast adjusted EPS of $3.20 to $3.50 in the next fiscal year, below analysts’ estimates of $3.72.

The company expects $141 billion to $145 billion in revenue vs $144 billion expected.

Ford Slips As UAW Expands Strike

Ford (F) shares are down 2.2% ahead of the open after the United Auto Workers Union expanded its strike against the automaker. 

UAW began its strike at the Kentucky Truck Plant at 6:30 p.m. ET on Wednesday. 

That plant is where Ford produces its Super Duty pickup trucks as well as Ford Expedition and Lincoln Navigator SUVs.

The plant employs 8,700 UAW members and is Ford’s largest in terms of employment and revenue. 

In a press release, the union said, “The strike was called after Ford refused to make further movement in bargaining. The surprise move marks a new phase in the UAW’s Stand Up Strike.”

Ford said the “decision by the UAW to call a strike at Ford’s Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through ‘reputational damage’ and ‘industrial chaos.’” 

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