Coffee With Greta: Taking A Breath

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DJIA Futures: -102 (-0.3%)

SPX Futures: -14 (-0.3%)

NASDAQ Futures: -27 (-0.2%)

Good morning friends!

Futures are lower as the Fed continues to strike down hopes of a rate cut soon.

Let’s get right to it!

Powell Doubles Down 

Fed Chair Jerome Powell doubled down on the bank’s plans for patience when it comes to rate cuts during an appearance on 60 Minutes Sunday night. 

The Chairman said, “With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully… “We want to see more evidence that inflation is moving sustainably down to 2%. Our confidence is rising. We just want some more confidence before we take that very important step of beginning to cut interest rates.”

The comments largely echoed those made during his press conference last Wednesday after the FOMC voted to keep interest rates unchanged. 

CME Group’s FedWatch Tool shows over 82% of traders expecting no rate hike or cut at the March 20 meeting. 

Currently, over 56% are betting on the first cut to happen in May. 

Quieter Week

This will be a calmer week for traders after last week’s busy schedule. 

Several Fed speakers are scheduled throughout the week, which will give more insight on the bank’s future plans for interest rate policy. 

There is no major economic data set to be released besides the weekly jobless claims report on Thursday morning. 

The earnings calendar is also lighter after last week’s mega cap tech reports. 

Here are the highlights: 

  • Tuesday AM: Eli Lilly (LLY), Spotify (SPOT)
  • Tuesday PM: Chipotle (CMG), Ford Motor (F), Snap (SNAP)
  • Wednesday AM: Uber (UBER), CVS (CVS), Roblox (RBLX)
  • Wednesday PM: Walt Disney (DIS), Arm Holdings (ARM), PayPal (PYPL)
  • Thursday PM: Pinterest (PINS), Affirm (AFRM)
  • Friday AM: Pepsico (PEP)

McDonald’s Drops On Revenue Miss

McDonald’s (MCD) shares are down 2.0% ahead of the open after missing Q4 revenue expectations. 

Here’s how the fast food giant’s results compared to analysts’ estimates: 

  • Adjusted EPS: $2.95 vs $2.82 expected
  • Revenue: $6.41 billion vs $6.45 billion expected

Revenue rose 8% year over year. 

McDonald’s reported global same-store sales growth of 3.4% vs 4.7% expected, weighed down by struggling sales in the Middle East.

Domestic same-store sales rose 4.3%, in line with expectations and boosted by higher menu prices. 

McDonald’s reiterated its 2024 forecast for systemwide sales growth of nearly 2%. 

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