All posts by Greta Wall
Coffee With Greta: Third Week Of Gains
Register now for the next free trading Q&A on LinkedIn with crypto expert and trader John Divine! DJIA Futures: +125 (+0.4%) SPX Futures: +11 (+0.2%) NASDAQ Futures: -8 (-0.1%) Good morning friends! Futures are mixed with the market on track for its third straight weekly gain. Let’s get right to it! Yields Flat Ahead Of Fed Speakers Treasury yields have turned flat this morning as investors bet the Federal Reserve is done with its rate-hike cycle. The 10-year yield is flat at 4.45%. This week’s cooler-than-expected CPI and PPI data gave more credence to the market’s expectations that the Fed is done hiking. CME Group’s FedWatch Tool shows 99.7% of traders anticipating no rate hike at the December 13 meeting. But central bank officials are remaining cautious on the victory lap. Cleveland Fed President Loretta Mester told CNBC on Thursday, “We’re going to have to see much more evidence that inflation is on that timely path back to 2%. But we do have really good evidence that it has made progress and now it’s just, is it continuing?” She would not commit to the Fed being done with hikes, saying, “I haven’t assessed that yet. Where I think we are right now is we’re basically in a very good spot for policy.” Several more Fed officials are scheduled to speak today including the Boston Fed President, Fed Vice Chair for Supervision, Chicago Fed President, and San Francisco Fed President. Housing Starts Rise More Than Expected New home construction increased more than expected in October. The Census Bureau reported housing starts rose 1.9% to a seasonally adjusted annual rate of 1.37 million units vs 1.35 million expected. It was the second straight monthly increase but starts were still down 4.2% from October 2022. Single-family starts rose 0.2% monthly and 13.1% year over year while multi-family starts rose 4.9% monthly and dropped 31.8% annually. The increased building activity is expected to continue as new permits issued also topped estimates. Building permits rose 1.1% to a seasonally adjusted annual rate of 1.49 million vs 1.45 million expected. Single-family permits were up 0.5% while multi-family permits jumped 2%. Gap Shares Soar On Q3 Beat Gap (GPS) shares are surging 18.3% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.59 vs $0.19 expected Revenue: $3.77 billion vs $3.60 billion expected Revenue fell 7% year over year but same-store sales declined just 2% vs the 8.7% drop analysts were anticipating. Gap’s gross margin also improved to 41.3% vs 38.9% expected as the retailer had lower commodity costs, fewer promotions, and continued several cost-cutting efforts. The company reaffirmed its full-year guidance and said it expects Q4 sales to be flat to slightly negative year over year. In Case You Missed It Homebuilder sentiment dropped unexpectedly this month. The National Association of Homebuilders sentiment index fell 6 points to 34 vs 40 expected. It was the lowest reading in a year with anything below 50 considered negative. Sentiment about current sales conditions fell six points to 40, 6-month sales expectations dropped five points to 39, and buyer traffic fell five points to 21.
Continue Reading -->Coffee With Greta: Rally Takes A Breather
DJIA Futures: -46 (-0.1%) SPX Futures: -2 (-0.03%) NASDAQ Futures: -24 (-0.2%) Good morning friends! Futures are lower as the November rally takes a breather and traders digest more retail earnings. Let’s get right to it! Walmart Slides On Cautious Outlook Walmart (WMT) shares are down 6.1% ahead of the open after beating Q3 expectations but issuing cautious guidance. Here’s how the big box retailer’s results compared to analysts’ estimates: Adjusted EPS: $1.53 vs $1.52 expected Revenue: $160.80 billion vs $159.72 billion expected Customer transactions rose 3.4% year over year while the average ticket increased 1.5%. Online sales in the U.S. jumped 24% from a year ago and 15% globally. Walmart forecast full-year adjusted EPS of $6.40 to $6.48, lower than $6.48 expected by analysts. Macy’s Pops On Earnings Beat Macy’s (M) shares are up 8.1% in premarket trade after beating Q3 expectations. Here’s how the department store chain’s results compared to analysts’ estimates: Adjusted EPS: $0.21 vs $0 expected Revenue: $4.86 billion vs $4.82 billion expected On an owned-plus-licensed basis, same-store sales declined 6.3% year over year vs the 7.75% decline expected. Merchandise inventories fell 6% while lower permanent markdowns on merchandise boosted Macy’s gross margin to 40.3% from 38.7% a year ago. Macy’s adjusted its full-year guidance after the beat, raising the low end of its expected sales range to $22.9 billion from $22.8 billion previously. The retailer expects same-store sales to decline up to 7% vs its previous outlook for an up to 7.5% drop. Macy’s forecast full-year adjusted EPS of $2.88 to $3.13 vs $2.70 to $3.20 previously. Weekly Jobless Claims Rise To 3-Month High Weekly jobless claims rose more than expected last week. The Labor Department reported 231,000 Americans filed initial unemployment claims. That was up by 13,000 from the previous week and higher than 222,000. It was the highest total of new claims in three months. Continuing claims rose for the eight week in a row to 1.83 million, the highest in seven months. The continued increase in those claims indicates it is taking unemployed workers longer to find new jobs.
Continue Reading -->Coffee With Greta: More Good Inflation News
Register now for today’s free trading Q&A on LinkedIn with Chartered Market Technician Christian Tharp! DJIA Futures: +78 (+0.2%) SPX Futures: +16 (+0.3%) NASDAQ Futures: +90 (+0.6%) Good morning friends! Futures are rising after the release of more positive inflation data. Let’s get right to it! PPI Drops Unexpectedly Wholesale inflation posted the largest decline since April 2020 last month. The Bureau of Labor Statistics’ producer price index fell 0.5% monthly and rose 1.3% year over year in October. That was better than expectations for a 0.1% monthly and 1.9% annual increase. The core PPI was unchanged monthly and up 2.4% annually vs expectations for a 0.3% monthly and 2.7% annual gain. Retail Sales Pull Back Retail sales fell in October for the first time in seven months. The Commerce Department reported retail sales declined 0.1% last month to $705 billion vs expectations for a 0.2% drop. It was the first negative reading since March. Gas stations saw the largest decline in sales, dropping 11.8% as prices fell. Sales at furniture stores fell 5.2%, building material store sales declined 2.8%, and sales at electronics and appliance retailers were down 1.7%. Spending at restaurants and bars jumped 11.5%, health and personal care store sales rose 8.2%, online sales rose 8.1%, sales at car dealerships jumped 3.5%, and grocery store sales rose 2.9%. Target Jumps On Earnings Beat Target (TGT) shares are up 13.1% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the retailer’s results compared to analysts’ estimates: EPS: $2.10 vs $1.48 expected Revenue: $25.4 billion vs $25.24 billion expected Comparable sales dropped nearly 5% year over year with digital sales down 6%. But profit jumped 36% from a year ago as inventory levels improved, with inventory down 14%. The CFO said, “A store can run more efficiently when their back rooms are free of inventory. A distribution center runs more efficiently, with fewer touches, when it’s not as full, too.” Target forecast Q4 adjusted EPS between $1.90 and $2.60 and said it expects a mid-single-digit decline in comparable sales. Mortgage Demand Climbs To 5-Week High Mortgage demand rose for the second straight week as rates remained lower. The Mortgage Bankers Association reported total application volume rose 2.8% last week. Purchase applications rose 3% weekly and were 12% lower year over year. Refinance applications rose 2% weekly and 7% annually. The average 30-year fixed contract rate was unchanged at 7.61%. Rates have since moved lower again this week after the cooler-than-expected CPI report on Tuesday.
Continue Reading -->Coffee With Greta: CPI Cools, Futures Surge
Register now for tomorrow’s free trading Q&A on LinkedIn with Chartered Market Technician Christian Tharp! DJIA Futures: +309 (+0.9%) SPX Futures: +52 (+1.2%) NASDAQ Futures: +241 (+1.6%) Good morning friends! Futures are surging and yields are tumbling after the release of cooler-than-expected inflation data. Let’s get right to it! CPI Falls Flat U.S. inflation pressures were flat in October. The Bureau of Labor Statistics’ consumer price index was unchanged monthly and up 3.2% year over year. That was better than expectations for a 0.1% monthly and 3.3 annual gain. Gas prices saw the largest drop last month, down 5% from September. Used car prices fell 0.8% monthly, grocery prices rose 0.3%, and shelter prices rose 0.3%. Excluding volatile gas and food prices, the core CPI rose 0.2% monthly and 4% annually vs 0.3% monthly and 4.1% annually expected. Home Depot Rises On Earnings Beat Home Depot (HD) shares are up 1.5% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the home improvement retailer’s results compared to analysts’ estimates: EPS: $3.81 vs $3.76 expected Revenue: $37.71 billion vs $37.6 billion expected Comparable sales fell 3.1% year over year, better than the 3.6% drop expected by analysts. There were 399.8 million customer transactions during the quarter, down from 409.8 million a year ago. Home Depot narrowed its full-year outlook. The retailer now expects full-year sales to fall by 3% to 4% year over year vs 2% to 5% previously, EPS is expected to slide by 9% to 11% vs 7% to 13% previously. Fisker Plunges After Q3 Miss Fisker (FSR) shares are tumbling 16.3% in premarket trade after reporting a wider than expected loss in the third quarter. Here’s how the electric vehicle startup’s results compared to analysts’ estimates: Loss per share $0.27 vs $0.19 expected Revenue: $71.8 million vs $109 million expected Fisker said it had $625 million in cash and cash equivalents on hand at the end of Q3, up from $521.8 million in Q2. The company said its manufacturing partner built 4,725 Ocean electric SUVs during the quarter and delivered 1,097 to customers. That was up from the 1,022 produced in Q2. Fisker says deliveries have accelerated since then with more than 1,200 Oceans delivered in October. The CEO said, “We are rapidly scaling our delivery infrastructure to support even higher volumes of deliveries of our class-leading product to our loyal customers. We are gaining momentum and delivered more units in the month of October than in all of the third quarter.”
Continue Reading -->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. Monday.com Surges On Earnings Beat Monday.com (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 Monday.com 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.
Continue Reading -->Coffee With Greta: Hawkish Powell
DJIA Futures: +125 (+0.4%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +47 (+0.3%) Good morning friends! Futures are higher as Treasury yields pull back and traders shake-off hawkish comments from the Fed Chair. Let’s get right to it! Powell Recap Federal Reserve Chairman Jerome Powell sounded more hawkish than expected at an IMF panel on Thursday. During his speech Powell said, “The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance.” But he also did not commit to any future moves saying, “If it becomes appropriate to tighten policy further, we will not hesitate to do so. We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening.” The Fed previously outlined plans for one more rate hike before the end of the year, but after the surge in Treasury yields the market believes that won’t happen. CME Group’s FedWatch Tool shows 90.7% of traders anticipating no rate hike at the December 13 meeting. Yields Cool Treasury yields are down this morning after spiking on Thursday. The 10-year yield is down 6 basis points at 4.56% with the 2-year yield down 5 basis points at 4.99%. Yields jumped on Thursday after demand for the 30-year bond auction was at the lowest level in two years. The 10-year yield spiked as much as 13 basis points. The Fed chair’s hawkish comments also fueled that spike as investors try to assess the future of monetary policy. Unity Software Slides On Revenue Miss Unity Software (U) shares are dropping 12.6% ahead of the open after missing Q3 revenue expectations and not providing guidance. Here’s how the video game engine’s results compared to analysts’ estimates: Loss per share: $0.32 vs $0.49 expected Revenue: $544.2 million vs $554 million expected Revenue was up 69% year over year, mainly thanks to Unity’s $2.9 billion acquisition of mobile advertising company ironSource. Unity’s Create Solutions segment, which includes game-development tools, reported $189 million in revenue vs $204.7 million expected. The Grow Solutions segment, which includes game publishing and advertising, reported $355.3 million in revenue, up nearly 166% from a year ago and higher than $345.3 million expected. In a letter to shareholders Unity said, “Our results in the third quarter were mixed. While revenue came in within guidance, we believe we can do better.” The company declined to provide guidance, citing uncertainty around when it plans to introduce new fees and a new strategy that might include layoffs and other cost-cutting measures. In Case You Missed It Tesla (TSLA) shares tumbled 5.5% on Thursday after HSBC Global analysts initiated coverage on the stock with a “reduce” rating and a $146 price target. The stock closed at $209.98 per share. HSBC analysts called CEO Elon Musk both an asset and a risk to the company. They said he is a “charismatic CEO with a cult-like following” who “feeds into the innovator narrative. But they also said, “Significant delays or developments that show lack of technological and/or regulatory feasibility for a commercial launch of these projects pose a significant risk for Tesla.”
Continue Reading -->Coffee With Greta: Extending Gains
DJIA Futures: +79 (+0.2%) SPX Futures: +9 (+0.2%) NASDAQ Futures: +4 (+0.02%) Good morning friends! Futures are rising as the S&P 500 extends its longest win streak since 2021. Let’s get right to it! Disney Jumps On Earnings Beat Walt Disney (DIS) shares are up 4.3% ahead of the open after beating fiscal Q4 profit expectations and announcing plans to expand its cost-cutting efforts. Here’s how the company’s results compared to analysts’ estimates: Adjusted EPS: $0.82 vs $0.70 expected Revenue: $21.24 billion vs $21.33 billion expected Disney+ subscribers: 150.2 million vs 148.15 million expected Revenue rose 5% year over year but marked the second straight miss for the first time since early 2018. Disney’s experience division, which includes the theme parks, saw revenue jump 13% to $8.16 billion. The company said it plans to continue to “aggressively manage” its cost base, increasing those efforts by $2 billion to a target of $7.5 billion. Arm Falls After First Post-IPO Earnings Arm Holdings (ARM) shares are falling 6.3% in premarket trade despite beating expectations in its first post-IPO earnings report. Here’s how the chip designer’s results compared to analysts’ estimates: Adjusted EPS: $0.36 vs $0.26 expected Revenue: $806 million vs $740 million expected Total revenue rose 28% year over year. In a letter to investors, company management said, “We are delighted with Arm’s first quarter as a listed company, which has demonstrated the strength of our business model and the robustness of our diversified products and end markets.” But Arm’s guidance for the current quarter fell short. The company expects EPS between $0.21 and $0.28 on revenue between $720 million and $880 million. Analysts were forecasting EPS of $0.27 on between $730 million and $805 million in revenue. Lyft Slips Despite Earnings Beat Lyft (LYFT) shares are down 4.1% ahead of the open despite beating Q3 expectations. Here’s how the ride-hailing giant’s results compared to analysts’ estimates: Adjusted EPS: $0.24 vs $0.15 expected Revenue: $1.16 billion vs $1.14 billion expected Revenue jumped 10% year over year while total rides rose 20% to 187 million. Lyft’s active riders grew 10% from a year ago to 22.4 million. The company forecast Q4 sales growth in the “mid-single-digits quarter over quarter” vs 3.5% expected. Lyft said it expects gross bookings in the current quarter of around $3.6 billion to $3.7 billion. Weekly Jobless Claims Fall Weekly jobless claims fell more than expected as the labor market remains tight. The Labor Department reported 217,000 Americans filed initial claims for unemployment benefits last week. That was a decrease of 3,000 from the week before and lower than 220,000 expected. Continuing claims rose by 22,000 to 1.83 million the week ending October 28, the highest level in seven months. This figure indicates it’s taking unemployed workers longer to find new jobs.
Continue Reading -->Coffee With Greta: Win Streak
Register now for today’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +28 (+0.1%) SPX Futures: +2 (+0.1%) NASDAQ Futures: -5 (-0.03%) Good morning friends! Futures are mostly higher as the S&P 500 extends its longest winning streak since 2021. Let’s get right to it! Rivian Pops On Higher Production Forecast Rivian (RIVN) shares are up 7% ahead of the open after beating Q3 expectations and hiking its full-year production forecast. Here’s how the electric automaker’s results compared to analysts’ estimates: Adjusted loss per share: $1.19 vs $1.34 expected Revenue: $1.34 billion vs $1.32 billion expected The company delivered 15,564 vehicles during the quarter. Rivian also ended its exclusivity deal with Amazon (AMZN) for its electric delivery vans. The CEO said it the company in “active discussions with a number of large potential fleet customers to launch pilot programs” with the vans. In a letter to shareholders, executives said, “We remain focused on ramping production and implementing core technologies designed to reduce cost and improve the customer offering.” Rivian now expects to produce 54,000 vehicles this year, up from 52,000 previously. Lucid Tumbles After Cutting Production Guidance Lucid (LCID) shares are dropping 6.7% in premarket trade after missing Q3 sales expectations and cutting its full-year production guidance. Here’s how the electric automaker’s results compared to analysts’ estimates: Loss per share: $0.28 vs $0.40 expected Revenue: $138 million vs $178 million expected Lucid produced about 1,550 units in Q3, bringing the 2023 total to about 6,000 so far. The company lowered its full-year production guidance to between 8,000 and 8,500 vehicles this year, down from about 10,000 previously. Even with the lower guidance, that still leaves 2,000 to 2,500 vehicles to produce in Q4. Robinhood Slips On Q3 Revenue Miss Robinhood (HOOD) shares are down 7.3% ahead of the open after missing Q3 revenue expectations. Here’s how the trading platform’s results compared to analysts’ estimates: Loss per share: $0.09 vs $0.10 expected Revenue: $467 million vs $480 million expected Revenue rose 29% year over year due to higher net interest and other revenue. But transaction revenue dropped 11% to $185 million, with equities transaction revenue down 13% and crypto revenue tumbling 55%. Robinhood’s monthly active users fell 16% from a year ago to 10.3 million vs 10.7 million expected. Warner Bros Drops On Q3 Loss Warner Bros. Discovery (WBD) shares are dropping 9.7% in premarket trade after reporting a wider-than-expected loss in Q3. Here’s how the media conglomerate’s results compared to analysts’ estimates: Loss per share: $0.17 vs $0.09 expected Revenue: $9.98 billion vs $9.97 billion expected Content revenue for WBD’s networks segment dropped 22% from a year ago to $215 million. The company said, “TV revenue declined significantly primarily due to certain large licensing deals in the prior year and the impact of the WGA and SAG-AFTRA strikes.” Total advertising revenue also fell 12% year over year to $1.8 billion. Mortgage Demand Jumps As Rates Drop Mortgage demand jumped last week as rates logged the biggest one-week drop in over a year. The Mortgage Bankers Association reported total application volume rose 2.5% last week, marking the first increase in a month. Purchase applications rose 3% weekly but were still 20% lower year over year. Refinance applications rose 2% weekly and were down 7% annually. The increase in activity came as the average 30-year fixed contract rate fell to 7.61% from 7.86%. In Case You Missed It Microsoft (MSFT) shares closed at a new all-time high on Tuesday amid optimism surrounding OpenAI. The stock ended the session at $360.53 per share, up 1.12%. It was Microsoft’s 8th straight daily gain, the longest streak since 2021. The company’s strategic AI partner, OpenAI, announced a slew of updates on Monday which propelled MSFT shares higher.
Continue Reading -->Coffee With Greta: Rally Fizzles
Register now for tomorrow’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: -68 (-0.2%) SPX Futures: -7 (-0.2%) NASDAQ Futures: +6 (+0.04%) Good morning friends! Futures are mostly lower as stocks take a breather from the recent rally. Let’s get right to it! Yields Fall, Futures Slip Both Treasury yields and stock futures are down this morning. The 10-year yield is down 2 basis points at 4.63% as investors await Fed speakers this week. Focus is on the Fed Chair’s opening remarks on Wednesday and speech at the IMF panel on Thursday. The Fed’s Vice Chair for Supervision, Michael Barr, is scheduled to speak this morning with Fed Governor Christopher Waller giving a speech at 10:00 a.m. ET. Economic data this week is light, giving traders very little clues on the state of the economy after the softer-than-expected jobs report on Friday. Uber Slips On Earnings Miss Uber Technologies (UBER) shares are down 1.2% ahead of the open after missing Q3 expectations on the top and bottom line. Here’s how the ride-hailing giant’s results compared to analysts’ estimates: EPS: $0.10 vs $0.12 expected Revenue: $9.29 billion vs $9.52 billion expected Revenue rose 11% year over year. Despite the miss, the CEO said Q3 was “very strong” and he saw accelerations in gross bookings, trips, and monthly active platform consumers. He said, “These results demonstrate that Uber continues to drive profitable growth at scale—and why we believe we’re well positioned for the journey ahead, in good or bad macro environments.” Uber had $17.90 billion in mobility gross bookings last quarter, up 31% from a year ago. The company logged $16.09 billion in delivery gross bookings, up 18% year over year. Uber forecast Q4 gross booking between $36.5 billion and $37.5 billion vs $36.5 billion expected. The company expects adjusted EBITDA of $1.18 billion to $1.24 billion in the current quarter. Trade Deficit Climbs The U.S. trade deficit rose more than expected in September as imports rebounded. The Bureau of Economic Analysis reported the deficit jumped 4.9% to $61.5 billion vs $59.8 billion expected. Exports rose 2.2% to $261.1 billion while imports rose 2.7% to $322.7 billion. The goods deficit rose by $1.7 billion to $86.3 billion while the services surplus decreased by $1.2 billion to $24.8 billion. But the total 2023 gap is still on track to be the smallest increase since 2020.
Continue Reading -->Coffee With Greta: Rally Extends
Register now for this week’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +14 (+0.04%) SPX Futures: +7 (+0.2%) NASDAQ Futures: +28 (+0.2%) Good morning friends! Futures are higher as the rally continues after the S&P 500’s best week of the year. Let’s get right to it! Quieter Week This will be a much quieter week for traders after last week’s marathon of the Fed decision, Apple (AAPL) earnings, and the jobs report. Several Fed officials are scheduled to speak throughout the week including two speeches from Chairman Jerome Powell on Wednesday and Thursday. Economic data for the week includes the September trade deficit on Tuesday, September wholesale inventories on Wednesday, weekly jobless claims on Thursday, and consumer sentiment on Friday. Earnings Slow The earnings calendar is also a bit lighter this week. Here are some of the highlights: Tuesday AM: Uber Technologies (UBER) Tuesday PM: Rivian (RIVN), Lucid (LCID), Robinhood (HOOD) Wednesday AM: Warner Bros Discovery (WBD), Roblox (RBLX) Wednesday PM: Walt Disney (DIS) Treasury Yields Turn Higher Treasury yields are on the rise this morning as investors assess the future of interest rates after last week’s Fed decision. The 10-year yield is up 10 basis points at 4.62% with the 2-year yield up 3 basis points at 4.90%. Friday’s cooler-than-expected jobs report raised hopes that the Fed is done hiking rates. Cooling down the labor market has been a key point for the central bank in its fight against inflation. CME Group’s FedWatch Tool currently shows over 90% of traders expecting no rate hike at the December meeting.
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