Coffee With Greta: Inflation Data As Expected

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DJIA Futures: +50 (0.1%)

SPX Futures: +15 (+0.3%)

NASDAQ Futures: +96 (+0.5%)

Good morning friends!

Futures are higher after the release of new inflation data that was in line with expectations.

Let’s get right to it!

PCE As Expected

The Fed’s preferred inflation gauge rose as expected in January. 

The Bureau of Economic Analysis’ personal consumption expenditures (PCE) price index rose 0.3% monthly and 2.4% year over year. 

The core PCE price index, which excludes food and energy, rose 0.4% monthly and 2.8% annually. 

Both numbers were in line with economists’ expectations. 

Services prices rose 0.6% monthly and 3.9% annually while goods prices fell 0.2% monthly and were down 0.5% from a year ago. 

Food prices rose 0.5% monthly and 1.4% annually while energy prices slid 1.4% monthly and dropped 4.9% annually. 

Personal incomes rose far more than anticipated, up 1% vs 0.3% expected.

Personal spending decreased 0.1% vs expectations for a 0.2% gain. 

Weekly Jobless Claims Rise

Weekly jobless claims rose more than expected last week. 

The Labor Department reported 215,000 Americans filed initial claims for unemployment benefits. 

That was up by 13,000 from the week before and higher than 210,000 expected. 

Continuing jobless claims rose by 45,000 to 1.91 million in the week ending February 17. 

Salesforce Rises After Earnings Beat

Salesforce (CRM) shares are up 1.1% ahead of the open after beating Q4 expectations on the top and bottom line. 

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

  • Adjusted EPS: $2.29 vs $2.26 expected
  • Revenue: $9.29 billion vs $9.22 billion expected

Total revenue was up 10.8% year over year while professional services revenue dropped 9%.

Salesforce forecast Q1 adjusted EPS of $2.37 to $2.39 on $9.12 billion to $9.17 billion in revenue. 

That topped analysts’ expectations for $2.20 in adjusted EPS on $9.15 billion in revenue.

For the full fiscal year, the company sees adjusted EPS between $9.68 and $9.76 on $37.7 billion to $38 billion in revenue. 

That implies 8.6% growth in the middle of the range. 

Analysts were forecasting full-year EPS of $9.57 on $38.62 billion in revenue.

Snowflake Tumbles

Snowflake (SNOW) shares are plunging 22.3% in premarket trade after beating Q4 expectations but announcing a surprise executive change. 

Here’s how the cloud software company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.35 vs $0.18 expected
  • Revenue: $774 million vs $760 million expected

Total revenue increased 32% year over year with product revenue up 33%. 

Salesforce announced CEO Frank Slootman is retiring and will be replaced by former Google executive Sridhar Ramaswamy. 

In a statement, Slootman said, “There is no better person than Sridhar to lead Snowflake into this next phase of growth and deliver on the opportunity ahead in AI and machine learning. He is a visionary technologist with a proven track record of running and scaling successful businesses.”

Snowflake forecast Q1 product revenue between $745 million and $750 million vs $759 million expected. 

The company said its Q1 adjusted operating margin would be 3% vs 7.2% expected.

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