Coffee With Greta: Waiting Game

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DJIA Futures: -12 (-0.03%)

SPX Futures: -3 (-0.1%)

NASDAQ Futures: -13 (-0.1%)

Good morning friends!

Futures are flat as traders await key inflation data on Thursday.

Let’s get right to it!

Waiting For Data

Stocks seem to be in a bit of a holding pattern as traders await key economic data on Thursday. 

The December CPI is set to be released at 8:30 a.m. ET tomorrow. 

Economists expect headline CPI to have risen 0.2% monthly and 3.2% annually with the core CPI up 0.3% monthly and 3.8% annually. 

Traders will be looking at this data for more clues on when the Fed may start cutting rates. 

The central bank’s first meeting of the year is January 30-31. 

CME Group’s FedWatch Tool shows over 95% of traders expecting no rate change at that meeting with over 66% anticipating the first cut at the next meeting on March 20.

Crypto Stocks Drop

Crypto-related stocks are pulling back this morning after a false post from the SEC’s X account that it had approved bitcoin ETFs for trading. 

Bitcoin prices quickly spiked after that post but then slid below $46,000 and is currently trading around $45,100. 

Coinbase (COIN) shares are down 3.3% ahead of the open, Marathon Digital Holdings (MARA) shares are down 3.8%, and Riot Platforms (RIOT) are 3.4% lower. 

The SEC later deleted the post and said its X account had been compromised. 

A spokesperson said, “The SEC will work with law enforcement and our partners across government to investigate the matter and determine appropriate next steps relating to both the unauthorized access and any related misconduct.”

The Commission is expected to make a decision on bitcoin ETFs this week.

Lennar Hikes Dividend

Lennar (LEN) shares are up 2.2% in premarket trade after raising its annual dividend by 33%. 

The homebuilder increased its dividend by $0.50 to $2.00 a share. 

The company’s board also authorized a $5 billion increase to its buyback program. 

The Co-CEO said, “Given the strength of our balance sheet, our strong cash position and our operating strategy driving cash flow, we are focusing more of our capital allocation on maximizing total shareholder returns.”

Mortgage Demand Jumps

Mortgage demand jumped at the start of the New Year even as rates rose slightly. 

The Mortgage Bankers Association reported total application volume rose 9.9% from the previous week. 

Purchase applications rose 6% weekly and were down 16% year over year. 

Refinance applications surged 19% weekly and were 30% from a year ago. 

The average 30-year fixed contract rate increased to 6.81% from 6.76%. 

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