Coffee With Greta: Rally Rebound


Register now for next week's free pro trading Q&A on LinkedIn with T3 Trading Group's Josh Lefler!

DJIA Futures: +253 (+0.7%)

SPX Futures: +39 (+0.8%)

NASDAQ Futures: +181 (+1.1%)

Good morning friends!

Futures are rising as stocks rebound from Wednesday’s slump.

Let’s get right to it!

Weekly Jobless Claims Inch Higher

Weekly jobless claims rose less than expected last week as layoffs remain low. 

The Labor Department reported 205,000 Americans filed initial claims for unemployment benefits. 

That was up by 2,000 from the previous week and lower than 215,000 expected. 

Continuing claims decreased by 1,000 to 1.865 million in the week ending December 9 vs 1.88 million expected. 

Q3 GDP Revised Lower

Economic growth in the third quarter has been revised lower. 

The Commerce Department’s final revision shows the U.S. economy expanded at a 4.9% annual pace in Q3 down from the previous estimate of 5.2%. 

It was still the largest increase in a decade, excluding the pandemic years.

GDP growth has slowed in the final three months of this year, with forecasts for 1% to 2% growth in Q4. 

CarMax Pops On Earnings Beat

CarMax (KMX) shares are up 9.5% ahead of the open after reporting mixed fiscal Q3 results. 

Here’s how the used-car retailer’s results compared to analysts’ estimates:

  • EPS: $0.52 vs $0.38 expected
  • Revenue: $6.15 billion vs $6.29 billion expected

Total used-unit sales fell 2.9% from a year ago while comparable-store used-unit sales dropped 4.1%.

CarMax also said it is resuming its buyback program after pausing it a year ago. 

The company has $2.41 billion remaining in its outstanding authorization to buy back shares and said it purchased 648,500 shares for $41.9 million during Q3. 

The President and CEO said, “Our third-quarter performance reflects the continued efforts of the team that have resulted in several quarters of sequential improvements across key components of our business, despite the persistent widespread pressures in the used-car industry.”

Micron Jumps After Earnings

Micron Technology (MU) shares are rising 7.5% in premarket trade after beating fiscal Q1 expectations on the top and bottom line. 

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

  • Adjusted loss per share: $0.95 vs $1.01 expected
  • Revenue: $4.73 billion vs $4.58 billion expected

The company’s CEO said, “Micron’s strong execution and pricing drove better-than-anticipated first quarter financial results. We expect our business fundamentals to improve throughout 2024.”

Micron forecast $5.3 billion in revenue for the fiscal second quarter topping expectations for $4.97 billion.

In Case You Missed It

  • Consumer confidence jumped to a five-month high in December. The Conference Board’s consumer confidence index rose 9.7 points to 110.7, topping expectations for 104. Confidence in current economic conditions rose 12 points to 148.5 while the expectations index rose 8.2 points to 85.6. The expectations index is back above the 80 threshold that is seen as a sign of an impending recession. 
  • Existing home sales rose unexpectedly in November. The National Association of Realtors reported existing sales rose 0.8% last month to a seasonally adjusted annual rate of 3.82 million units vs 3.76 million expected. The median sales price of an existing home sold in November rose 4% year over year to $387,600, the fifth straight monthly increase. There were 1.13 million homes for sale at the end of November, down 1.7% from October and marking a 3.5-month supply. 

Leave a Comment: