Coffee With Greta: Moody’s Cuts U.S. Outlook


Register now for this week's free trading Q&A on LinkedIn with Chartered Market Technician Christian Tharp!

DJIA Futures: -83 (-0.2%)

SPX Futures: -14 (-0.3%)

NASDAQ Futures: -63 (-0.4%)

Good morning friends!

Futures are falling after Moody’s cut its outlook for the U.S. late on Friday.

Let’s get right to it!

Moody’s Cuts U.S. Outlook

Moody’s Investors Service lowered its ratings outlook for the U.S. from to negative from stable after the market closed on Friday. 

The agency said, “In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues. Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”

The group also said, “Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability.”

Congress is facing another government shutdown deadline on November 17.

The new House Speaker unveiled his proposed budget plan on Saturday, which the White House called ‘unserious’.

But Moody’s still kept the U.S.’s long-term issuer and senior unsecured loan ratings at AAA. 

The agency said it expects the country to  “retain its exceptional economic strength” and “Further positive growth surprises over the medium term could at least slow the deterioration in debt affordability.”

Tyson Slips On Revenue Miss, Weak Outlook

Tyson Foods (TSN) shares are down 2.5% ahead of the open after missing fiscal Q4 sales expectations. 

Here’s how the meat processor’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.37 vs $0.29 expected
  • Revenue: $13.3 billion vs $13.7 billion expected

Sales volume fell 0.6% year over year with the average price down 1.4%. 

Beef volume dropped 6.7% and the average price rose 10.2%, chicken volume jumped 1.7% and the average price tumbled 9.2%.

Tyson said it expects fiscal 2024 sales to be flat with the $52.88 billion in 2023 sales vs analysts’ estimates for $54.37 billion. Surges On Earnings Beat (MNDY) shares are surging 12.1% in premarket trade after crushing Q3 expectations and hiking its full-year guidance. 

Here’s how the project management company’s results compared to analysts’ estimates: 

  • EPS: $0.64 vs $0.21 expected
  • Revenue: $189.2 million vs $182.5 million expected said it now expects full-year revenue between $723 million and $725 million and adjusted operating income between $47 million and $49 million.

That was up from the previous revenue forecast of $713 million to $717 million and adjusted operating income of $24 million to $28 million.

Boeing Jumps On Emirates Purchase

Boeing (BA) shares are up 3.5% ahead of the open after Emirates Airlines announced a $52 billion order from the planemaker. 

Emirates will purchase 95 more Boeing aircraft, including 55 Boeing 777-9s and 35 777-8s.

The airline also increased its 787 Dreamliner order to 35 from 30.

It was the first major deal made at the 2023 Dubai Airshow. 

Emirates Airlines operates the largest number of Boeing 777 aircraft of any airline in the world.

Leave a Comment: