All posts by Greta Wall
Coffee With Greta: Traders Assess Strong Jobs Data
I will be out of office from September 29 through October 6, Coffee With Greta will resume like normal on Monday, October 9. DJIA Futures: -43 (-0.1%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -48 (-0.3%) Good morning friends! Futures are falling as traders digest stronger than expected jobless claims data. Let’s get right to it! Weekly Jobless Claims Rise Less Than Expected Weekly jobless claims rose less than expected last week amid continued strength in the labor market. The Labor Department reported 204,000 Americans filed initial claims for unemployment benefits. That was up by 2,000 from the previous week and lower than 214,000 expected. Continuing jobless claims rose by 12,000 to 1.67 million in the week ending September 16. Micron Drops On Weak Forecast Micron (MU) shares are down 2.6% ahead of the open after beating fiscal Q4 expectations but issuing weak earnings guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted loss per share: $1.07 vs $1.15 expected Revenue: $4.01 billion vs $3.9 billion expected For the full fiscal 2023 year, Micron’s revenue totaled $15.5 billion, down 49% year over year. The company lost $4.45 per share on a non-GAAP basis vs profit of $7.75 per share last year. For the fiscal first quarter, Micron forecast $4.4 billion in revenue vs $4.2 billion expected and a non-GAAP loss of $1.07 per share vs $1.04 expected. CarMax Slides CarMax (KMX) shares are tumbling 12.2% in premarket trade after reporting a sharp decline in fiscal Q2 revenue. Here’s how the used car dealer’s results compared to a year ago: EPS: $0.75 vs $0.79 last year Revenue: $7.1 billion, down 7.4% from a year ago Comparable store sales dropped 9% year over year with the average selling price down by $1,200 per unit, about 4%. CarMax said, “We believe vehicle affordability challenges continued to impact our second quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence.” Peloton Rallies On Lululemon Partnership Peloton (PTON) shares are up 9.3% ahead of the open after announcing a new strategic partnership with Lululemon (LULU). Lulu shares are up 0.1%. The two companies announced a five-year partnership after the close on Wednesday. The partnership will bring Peloton’s content to Lululemon’s exercise app and Lululemon will become Peloton’s primary athletic apparel partner. A select number of Peloton instructors will also become Lululemon ambassadors. Lululemon’s exercise app has about 13 million members, nearly double Peloton’s global member count. GameStop Names Ryan Cohen CEO GameStop (GME) shares are jumping 7.8% in premarket trade after appointing Ryan Cohen as its new CEO, chairman, and president. The change is effective immediately and Cohen will not collect a salary. GameStop’s board unanimously voted to appoint Cohen as CEO on Wednesday.
Continue Reading -->Coffee With Greta: Yields Down, Stocks Up
Register now for today’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: +99 (+0.3%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +55 (+0.4%) Good morning friends! Futures are rising as traders attempt a bounce back from Tuesday’s losses. Let’s get right to it! Yields Down, Stocks Up Treasury yields are falling this morning with stocks rising. The 2-year yield is down 1 basis point at 5.07% while the 10-year yield is down 4 basis points at 4.49%. The recent increase in rates has put pressure on equities with the Dow logging its worst day since March on Tuesday. So far in September, the Dow is down 3.2%, the S&P 500 has dropped 5.2%, and the Nasdaq has tumbled nearly 7%. Costco Tops Fiscal Q4 Expectations Costco (COST) shares are slipping 1.9% ahead of the open despite beating fiscal Q4 expectations on the top and bottom line. Here’s how the warehouse-club’s results compared to analysts’ estimates: EPS: $4.86 vs $4.79 expected Revenue: $78.9 billion vs $77.9 billion expected Total comparable sales rose 1.1% year over year but just 0.2% in the U.S. Excluding gas, comparable sales rose 3.8% overall and 3.1% in the U.S. Costco’s average transaction amount during the quarter dropped nearly 4% globally and 4.5% in the U.S. The company had 71 million paid household members at the end of the quarter, up nearly 8% from a year ago. The CFO highlighted a shift in consumer spending away from discretionary items like furniture, small electronics, and jewelry. That contributed to the 0.8% decline in e-commerce sales during the quarter. Durable Goods Orders Climb Unexpectedly Durable goods orders rose unexpectedly in August, boosted by strong defense spending. The Census Bureau reported orders rose 0.2% last month vs expectations for a 0.5% decline. Defense spending was higher during the month as the U.S. worked to replenish military hardware that has been sent to Ukraine. Durable goods orders minus defense fell 0.7%. Durable goods orders excluding transportation rose 0.4%. Mortgage Demand Slips Mortgage demand fell last week as rates hit a 23-year high. The Mortgage Bankers Association reported total application volume fell 1.3% weekly and 25.5% year over year. Purchase applications fell 2% weekly and 27% annually. Refinance applications were down 1% weekly and 21% lower than a year ago. The average 30-year fixed contract rate rose to 7.41% from 7.31%, the highest since the year 2000. In Case You Missed It New home sales fell more than expected in August. The Census Bureau reported new sales dropped 8.7% to a seasonally adjusted annual rate of 675,000 units vs 695,000 expected. July’s new home sales were also revised higher to 739,000. New home sales have fallen to the lowest level since March 2023 as mortgage rates remain well-above 7%. Consumer confidence tumbled to a four-month low this month. The Conference Board’s consumer confidence index dropped 5.7 points to 103 vs 105.5 expected. Confidence in current economic conditions rose 0.4 points to 147.1. But the six month expectations index dropped 9.6 points to 73.7. That was below the 80 mark that’s know as a recession signal.
Continue Reading -->Coffee With Greta: September Losses Continue
Register now for tomorrow’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -180 (-0.5%) SPX Futures: -26 (-0.6%) NASDAQ Futures: -92 (-0.6%) Good morning friends! Futures are dropping as traders add to September’s losses. Let’s get right to it! Yields Cool U.S. Treasury yields are falling this morning after hitting multiyear highs over the past few days. The 2-year yield is down 2 basis points to 5.13% while the 10-year yield is down 4 basis points to 4.49%. Investors are looking ahead to important economic data for the Fed this week to help determine when the next rate hike may be. Fed Chair Jerome Powell is scheduled to speak Thursday afternoon and the bank’s preferred inflation gauge, the core PCE price index, will be released Friday morning. Shutdown Countdown The House is preparing to vote on four funding bills today in order to avoid a government shutdown this weekend. Those bills include funding for the Departments of Defense, Homeland Security, State and Agriculture. But even if passed along party lines in the Republican-controlled House, the bills are not expected to be considered in the Democrat-controlled Senate. Congress has until Saturday night to pass a full funding package or a continuing resolution to extend funding while negotiations continue. House Speaker Kevin McCarthy has said he wants to pass a short-term deal to fund the government for 45 days but acknowledged he may not have the votes from hard-right Republicans who want steep spending cuts. Oil Prices Fall Oil prices are down this morning as demand concerns rise due to the high interest rate outlook. West Texas Intermediate crude futures are down 0.6% at just over $89 bbl with Brent crude futures down 0.6% at under $93 bbl. Fed officials and other central banks around the world have reiterated plans in recent days to keep monetary policy tight for longer than previously anticipated. That impacts oil prices because higher rates slow economic growt, which lowers oil demand. Tesla Falls After EU Investigation Report Tesla (TSLA) shares are down 0.9% ahead of the open following a Financial Times report that EV makers that export from China to the EU are set to be investigated. Brussels’ most senior trade official said the EU will investigate whether Tesla and other EV makers are receiving unfair subsidies. When asked if the investigation applied to Tesla, he said, “Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies.”
Continue Reading -->Coffee With Greta: Wake Me Up, When September Ends
Register now for Wednesday’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -62 (-0.2%) SPX Futures: -10 (-0.2%) NASDAQ Futures: -32 (-0.2%) Good morning friends! Futures are lower as markets enter the final week of September. Let’s get right to it! New Week Stocks are slipping and yields are rising as the last week of September begins on Wall Street. So far this month, the S&P 500 is down 4.2%, on pace for its second straight monthly drop and worst month since December. The Nasdaq is down 5.9% in September so far, also its biggest monthly loss since December. And the Dow is down 2.2% this month. While stocks have been dropping throughout the month, Treasury yields have hit the highest levels since 2007. The 2-year yield is up 3 basis points this morning at 5.12% while the 10-year yield is up 7 basis points at 4.51%. The spike in yields comes after the Fed signaled it plans to hike rates one more time this year and only cut twice in 2024. Government Shutdown Looms Congress is facing an October 1 deadline to avoid a government shutdown and things are looking grim. In order to avoid a shutdown, Congress must pass a funding bill and the President must sign it into law by 12:00 a.m. ET on October 1. But no progress has been made toward a deal that both the Republican-controlled House and the Democrat-controlled Senate would pass. If a shutdown occurs, millions of federal workers will be impacted and without pay including roughly 2 million military personnel and more than 2 million civilian workers. Goldman Sachs estimates a shutdown would reduce economic growth by 0.2% every week it lasted. Media Stocks Rise On Potential Deal With Writers Paramount Global (PARA) shares are up 1.3% with Warner Bros Discovery (WBD) shares rising 1.8% ahead of the open amid news Hollywood writers and studios have reached a preliminary labor agreement. Talks resumed between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) last week. The two groups are reportedly still drafting the final language of the counteract. In a letter to members, the WGA’s negotiation committee wrote, “What we have won in this contract — most particularly, everything we have gained since May 2nd — is due to the willingness of this membership to exercise its power, to demonstrate its solidarity, to walk side-by-side, to endure the pain and uncertainty of the past 146 days. It is the leverage generated by your strike, in concert with the extraordinary support of our union siblings, that finally brought the companies back to the table to make a deal.” The WGA did not layout details of the deal but said it “is exceptional — with meaningful gains and protections for writers in every sector of the membership.” Actors remain on strike as the AMPTP still needs to resume negotiations with SAG-AFTRA. Oil Prices Steady Oil prices are down slightly to start the new week after Russia relaxed some of its fuel ban. West Texas Intermediate crude futures are down 0.3% at under $90 bbl while Brent crude futures are down 0.2% at just over $93 bbl. Government documents show Russia lifted restrictions for fuel used as bunkering for some vessels and diesel with high sulfur content. But the export ban on all types of gasoline and high-quality diesel remains in place.
Continue Reading -->Coffee With Greta: End Of Week Pop
Register now for next week’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: +39 (+0.1%) SPX Futures: +15 (+0.4%) NASDAQ Futures: +93 (+0.6%) Good morning friends! Futures are slightly higher but the market is still on track for big weekly losses. Let’s get right to it! Yields Slip Treasury yields are slipping this morning as investors assess the future of the U.S. economy. The 2-year yield is down 3 basis points at 5.12% while the 10-year yield is down 2 basis points at 4.47%. The slight pullback comes after both hit the highest levels seen since 2006 and 2007 on Thursday. Government Shutdown Fears Intensify Fears of a government shutdown intensified on Thursday as House Republican leaders sent the chamber into recess. Congress has until the end of next week to pass a bill to fund the government. But a rules vote on a Pentagon funding bill failed on Thursday, despite these bills typically being approved by wide margins. Even if a funding bill were passed by the Republican-controlled House by next week, it would be unlikely to pass in the Democrat-controlled Senate. But House Republicans are facing opposition from members of their own party in the lower chamber. The market is concerned about the possibility of a government shutdown cutting into fourth-quarter GDP and undermining global confidence in the U.S. Oil Prices Rise On Fresh Supply Fears Oil prices are back on the rise today amid renewed supply fears from Russia’s fuel ban. West Texas Intermediate crude futures are up 1% at $90.50 bbl with Brent crude futures up 0.8% at just over $94 bbl. Russian state media said pipeline company Transneft has suspended diesel deliveries to the Baltic and Black Sea terminals of Permorsk and Novorossiysk. The country also temporarily banned gas and diesel exports to all countries except four ex-Soviet states to stabilize its domestic fuel market. This ban comes on top of the extended production cuts from Saudi Arabia and Russia, putting more pressure on global supply.
Continue Reading -->Coffee With Greta: Fed Hangover
Register now for next week’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -208 (-0.6%) SPX Futures: -39 (-0.9%) NASDAQ Futures: -191 (-1.3%) Good morning friends! Futures are dropping after the Fed’s hawkish rate pause on Wednesday. Let’s get right to it! Fed Recap The Federal Reserve left interest rates unchanged as expected on Wednesday. The federal funds rate remains in a range of 5.25% to 5.5%. But the Central Bank signaled it expects one more rate hike before the end of the year. The Federal Open Market Committee’s statement said “economic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong.” The Fed also released an updated Summary of Economic Projections, AKA the dot plot, which showed rates remain higher for longer. The new dot plot shows just two rate cuts in 2024 with a terminal rate of 5.1% vs previous expectations for four cuts next year. The Fed sees a terminal rate of 3.9% at the end of 2025 and 2.9% at the end of 2026. The Central Bank also raised its projections for GDP growth to 2.1% this year and 1.5% in 2024. Weekly Jobless Claims Fall To 8-Month Low Weekly jobless claims fell unexpectedly again in a continued sign of strength for the labor market. The Labor Department reported 201,000 Americans filed initial claims for unemployment benefits last week. That was down by 20,000 from the previous week and lower than expectations for claims to rise to 225,000. It was also the lowest level of weekly claims in eight months. Continuing claims fell by 26,000 to 1.66 million in the week ending September 9 vs 1.69 million expected. Key Factory Gauge Contracts The Philadelphia Fed’s manufacturing index dropped back into negative territory this month. The index tumbled 25.5 points to -13.5 vs expectations for -0.7. It is the 14th negative reading in the past 16 months. The new orders index plunged 25.8 points to -10.2, shipments index dropped 8.5 points to -3.2, and unfilled orders fell 8.8 points to -13.6. High prices continued to be an issue with the prices paid index rising 4.9 points to 25.7 while the prices received index rose by 0.7 points to 14.8. FedEx Earnings Beat FedEx (FDX) shares are up 4.6% ahead of the open after beating fiscal Q1 profit expectations. Here’s how the shipping giant’s results compared to analysts’ estimates: Adjusted EPS: $4.55 vs $3.71 expected Revenue: $21.7 billion vs $21.74 billion expected FedEx reported operating profit margins of 7.3%, better than 6% expected. The CEO said, “FedEx is well-positioned to continue to deliver improved profitability while becoming an even more flexible, efficient, and data-driven organization.” The company forecast fiscal 2024 full-year earnings of $17 to $18.50 per share up from its previous guidance for $16.50 to $18.50. Splunk Rallies On Cisco Deal Splunk (SPLK) shares are rallying 19.6% in premarket trade after Cisco (CSCO) announced a deal to acquire the cybersecurity firm. Cisco will buy Splunk for $157 per share in an all-cash deal, valuing the company at about $28 billion. The deal is expected to close in Q3 2024. If Cisco backs out of the deal or is forced to abandon it because of regulatory intervention, it will owe Splunk a $1.48 billion termination fee. If Splunk backs out, it will pay a $1 billion breakup fee to Cisco. Cisco’s chair and CEO said, “From threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient.”
Continue Reading -->Coffee With Greta: Fed Countdown
Register now for today’s free trading Q&A with Derrick Oldensmith! DJIA Futures: +97 (+0.3%) SPX Futures: +12 (+0.3%) NASDAQ Futures: +39 (+0.3%) Good morning friends! Futures are up as traders await the Fed decision. Let’s get right to it! Fed Day Treasury yields are pulling back ahead of today’s Fed decision. The 2-year yield is down 3 basis points to 5.07% while the 10-year yield is down 2 basis points to 4.34%. The decline comes after the 10-year was trading at the highest levels seen since November 2007 on Tuesday. The Fed will announce its interest rate decision at 2:00 p.m. ET. The Central Bank is widely expected to keep rates unchanged but focus is on the messaging around that pause. Traders are looking for more insight on the Fed’s future plans for monetary policy with two more meetings left this year. Many are hoping the bank is done hiking rates but officials have so far left the door open for more hikes if the data shows it necessary. Oil Prices Fall Oil prices are pulling back ahead of today’s Fed decision. West Texas Intermediate crude futures are down 1% to $90.30 bbl with Brent crude futures falling 1.1% to $93.35 bbl. The price drop comes despite a larger than expected drop in U.S. crude stockpiles last week. The American Petroleum Institute reported U.S. inventories fell by 5.25 million barrels last week vs 2.2 million expected. Analysts expect prices to continue rallying on supply concerns barring any major surprise from the Fed. General Mills Tops Fiscal Q1 Expectations General Mills (GIS) shares are up 0.9% ahead of the open after beating fiscal Q1 expectations on the top and bottom line. Here’s how the food company’s results compared to analysts’ estimates: Adjusted EPS: $1.09 vs $1.08 expected Revenue: $4.9 billion vs $4.88 billion expected The CEO said, “We delivered growth on the top and bottom lines in the first quarter amid an evolving external environment characterized by moderating inflation, stabilizing supply chains, and a resilient but increasingly cautious consumer.” General Mills reaffirmed its fiscal 2024 guidance for adjusted operating profit and adjusted earnings growth of 4% to 6%. The company expects organic net sales to rise 3% to 4%. Mortgage Demand Jumps Mortgage demand increased last week amid a strange jump in refinance activity despite rates rising higher. The Mortgage Bankers Association reported refinance applications jumped 13% weekly but volume was still down 29% year over year. Purchase applications rose 2% weekly and were down 26% from a year ago. The average 30-year contract fixed rate increased to 7.31% from 7.27%. In Case You Missed It Instacart (CART) shares rallied 12.3% in the company’s stock market debut on Tuesday. The stock opened on the Nasdaq up 40% at $42 per share before closing at $33.70. Instacart priced the IPO late Monday at $30 per share, valuing the company at about $10 billion. As of Tuesday’s close that market cap jumped to just over $11 billion. CART is down 4.5% ahead of the open.
Continue Reading -->Coffee With Greta: Waiting For The Fed
Register now for this tomorrow’s free trading Q&A with Derrick Oldensmith on Fed Day! DJIA Futures: -18 (-0.1%) SPX Futures: -2 (-0.1%) NASDAQ Futures: -22 (-0.1%) Good morning friends! Futures are lower as traders wait for Wednesday’s Fed decision. Let’s get right to it! Housing Starts Plunge, Building Permits Rise U.S. new home construction tumbled far more than expected in August. The Census Bureau reported housing starts plunged 11.3% last month to a seasonally adjusted annual rate of 1.28 million units vs 1.43 million expected. That was the lowest level of starts since June 2020 and down 14.8% year over year. Single-family construction dropped 4.3% while multi-family construction tumbled 26.3%. But building may rebound in the months ahead as permits issued rose more than expected. Building permits jumped 6.9% to 1.54 million units vs 1.45 million expected. Single-family permits rose 2% while multi-family permits jumped 14.8%. Fed Meeting Begins The Federal Open Market Committee will kickoff its two-day policy meeting today with the rate decision on Wednesday. CME Group’s FedWatch Tool still shows 99% of traders expecting no rate hike. Focus for the market will be on the Fed’s messaging about future policy decisions. There are still two more Fed meetings this year, on November 1 and December 13. Currently, 28.8% of traders see the possibility of a rate hike in November and 35.4% in December. Oil Rally Continues Oil prices are rising for the fourth straight session. West Texas Intermediate crude futures are up 1.4% at over $92.70 bbl with Brent crude futures up 0.8% at over $95 bbl. Prices have been rising for three consecutive weeks amid supply concerns. The Energy Information Administration reported Monday that U.S. shale output is on track to fall by 9.393 million barrels per day in October. That would be the third straight monthly decline and puts more pressure on global supply. Rocket Lab Plunges After Satellite Launch Failure Rocket Lab USA (RKLB) shares are plunging 18.1% ahead of the open after a failed satellite launch early this morning. The company confirmed its 41st Electron rocket launch from New Zealand failed about 2 minutes and 30 seconds into the flight. The rocket was carrying the Acadia 2 satellite for San Francisco-based Capella space. It was the first failed launch for the company in over two years. Rocket Lab said it is working with the FAA to determine the cause of the issue and postponed its next launch. As a result of that postponement, the company expects to issue revised Q3 guidance. In Case You Missed It Homebuilder sentiment fell more than expected this month. The National Association of Homebuilders’ sentiment index dropped 5 points to 45 vs 49.5 expected. It’s the first time confidence among builders has turned negative in 7 months as higher mortgage rates hurt affordability. Sentiment about current sales conditions fell 6 points to 51, buyer traffic decreased 5 points to 30, and six-month sales expectations dropped 6 points to 49.
Continue Reading -->Coffee With Greta: Fed Week Kickoff
Register now for this week’s free trading Q&A with Derrick Oldensmith on Fed Day! Good morning friends! Futures are flat but mostly lower as traders look ahead to this week’s Fed meeting. Let’s get right to it! Fed Week Traders are looking ahead to the Fed’s rate decision on Wednesday with focus on language about future policy decisions. CME Group’s FedWatch Tool shows 99% of traders expecting no rate hike this week. But the market is more split on whether the central bank might hike again in November and December. The market will be analyzing the FOMC statement and Chairman Jerome Powell’s press conference for a more dovish or hawkish stance on future policy. Meantime, the bulk of important economic data this week is focused on the housing market. The NAHB releases its homebuilder sentiment index at 10:00 a.m. ET today. Then the Census Bureau reports housing starts and building permits at 8:30 a.m. ET Tuesday. And finally, the National Association of Realtors reports existing home sales at 10:00 a.m. ET Thursday. Yields Rise Ahead Of Fed Treasury yields are starting this week higher ahead of Wednesday’s Fed decision. The 2-year yield is up nearly 3 basis points over 5.06% while the 10-year yield is up 2 basis points to 4.35%. Last week’s inflation data was relatively in-line with economists’ expectations and the consumer sentiment index showed a significant decline in inflation expectations. Oil Extends Rally Oil prices are continuing to rise, putting pressure on inflation. West Texas Intermediate crude futures are up 1.2% at nearly $92 bbl while Brent crude futures are up 0.9% at just under $95 bbl. The recent rally comes amid supply concerns after Saudi Arabia and Russia extended their production cuts through the end of the year. Both WTI and Brent have climbed for three straight weeks to the highest prices since November 2022. Prices are on track for the largest quarterly increase since Q1 2022. Arm Slips On Bearish Call Arm Holdings (ARM) shares are down 4.2% ahead of the open after Bernstein initiated coverage on the newly-listed stock this morning. Bernstein analyst Sara Russo rated the stock “underperform” and said it’s too early to know if it will be an AI winner. In a note to clients Russo wrote, “While expectations that Arm will be a beneficiary from AI growth may be adding a premium to the share price, we believe it is too soon to declare them an AI winner. In addition, we remain more conservative on their ability to deliver increased royalty rates at the pace management is guiding.” She put her price target at $46, down more than $14 from where the stock closed on Friday.
Continue Reading -->Coffee With Greta: Rally Fizzles
Register now for next week’s free trading Q&A with Derrick Oldensmith on Fed Day! DJIA Futures: -8 (-0.02%) SPX Futures: -4 (-0.1%) NASDAQ Futures: -36 (-0.2%) Good morning friends! Futures are slipping as traders attempt to hold-on to this week’s rally. Let’s get right to it! Arm Extends Gains After Debut Arm Holdings (ARM) shares are up 1.8% ahead of the open after debuting on the Nasdaq Thursday. The stock began trading Thursday at $56.10 per share on Thursday after the company priced its IPO at $51 per share. ARM closed 24.7% higher at $63.59. That price puts the stock at a high premium. With a $60 billion valuation, the price-to-earning multiple would be over 110 based on the most recent fiscal year profit. Nvidia (NVDA) for comparison currently trades at around 108 times earnings. Workers Strike At Ford, GM, Stellantis Plants S Ford (F) shares are falling 1.1%, General Motors (GM) shares are down 0.4%, and Stellantis (STLA) shares are up 0.6% in premarket trade as thousands of United Auto Workers Union members go on strike at three plants. Workers are on strike at assembly plants of all three companies after the union and automakers failed to reach a new labor contract Thursday night. At midnight eastern time the union posted on X, formerly Twitter, “The UAW Stand Up Strike begins at all three of the Big Three.” The strike includes about 12,700 total workers at three plants: GM’s midsize truck and full-size van plant in Wentzville, Missouri – 3,600 workers Ford’s Ranger midsize pickup truck and Bronco SUV plant in Wayne, Michigan – 3,300 workers Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio – 5,800 workers This is the first time the UAW has staged strikes at all three of the “Big Three” automakers at once. Import Prices Jump Import prices rose more than expected in August thanks to higher oil prices. The Bureau of Labor Statistics import price index jumped 0.5% vs 0.3% expected. That was the biggest increase in 15 months as foreign-produced fuel costs surged 6.7%. Excluding fuel though, import prices fell 0.1%. The total cost of imports was down 3% year over year with nonfuel import prices falling 0.8%. Export prices rose 1.3% in August but are still down 5.5% compared to a year ago. Key Manufacturing Gauge Rebounds The New York Fed’s Empire State manufacturing index jumped 21 points this month to 1.9. That sharply beat economists’ expectations for -10 and reverses the 20.1 point drop in August. The new orders index jumped 25 points to 5.1 while shipments index rose 24.7 points to 12.4. Unfilled orders rose 1.6 points to -5.2, a sign they are continuing to decline. The six-month expectations index jumped 6.4 points to 26.3, the highest reading in more than a year.
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