All posts by Greta Wall
Coffee With Greta: Earnings Kickoff With Big Banks
DJIA Futures: -9 (-0.03%) SPX Futures: -7 (-0.2%) NASDAQ Futures: -93 (-0.7%) Good morning friends! Futures are mostly lower as traders digest first-quarter earnings from big banks and new data on the U.S. consumer. Let’s get right to it! JPMorgan Chase Reports Record Revenue JPMorgan Chase (JPM) shares are rallying 6.1% ahead of the open after beating Q1 expectations on the top and bottom line. Here’s how the largest U.S. bank’s results compared to analysts’ estimates: Adjusted EPS: $4.32 vs $3.41 expected Revenue: $39.34 billion vs $36.19 billion expected Net interest income surged nearly 50% year over year which pushed quarterly revenue to a new record. CEO Jamie Dimon said, “The U.S. economy continues to be on generally healthy footings —consumers are still spending and have strong balance sheets, and businesses are in good shape.” But he also warned, “the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks.” Wells Fargo Tops Q1 Expectations Wells Fargo (WFC) shares are up 3.8% in premarket trade after beating Q1 expectations on the top and bottom line. Here’s how the bank’s results compared to analysts’ expectations: GAAP EPS: $1.23 vs $1.13 expected Revenue: $20.73 billion vs $20.08 billion expected Wells Fargo’s net interest income surged 45% year over year as interest rates rose. CEO Charlie Scharf said, “We had strong results in the first quarter including revenue growth from both the fourth quarter and a year ago, and we continued to make progress on our efficiency initiatives.” Wells Fargo set aside $1.2 billion for credit losses during the quarter. Citigroup Rises On Earnings Beat Citigroup (C) shares are up 1.6% ahead of the open after beating Q1 expectations on the top and bottom line. Here’s how the investment bank’s results compared to analysts’ estimates: Profit: $4.6 billion vs $4.3 billion expected Revenue: $21.45 billion vs $19.99 billion expected Personal banking revenue rose 18% year over year while fixed-income markets revenue rose 4%. But Citigroup did see declines in investment banking and equity markets revenue. UnitedHealth Group Raises Outlook After Earnings Beat UnitedHealth Group (UNH) shares are up 0.4% in premarket trade after beating Q1 expectations on the top and bottom line and hiking its outlook. Here’s how the health insurer’s results compared to analysts’ expectations: EPS: $6.26 vs $6.16 expected Revenue: $91.9 billion vs $89.7 billion expected In a statement, the company said, “In the first quarter of 2023, UnitedHealthcare grew to serve nearly 2 million more people than a year ago, with broad-based growth across the company’s commercial, community-based and senior benefit offerings.” UnitedHealth hiked its full-year earnings outlook to between $24.50 and $25 per share vs $24.40 to $24.90 previously. Retail Sales Fall More Than Expected Retail sales fell more than expected in March as consumers pulled back. The Commerce Department reported retail sales dropped 1% last month to $691.7 billion. That was worse than expectations for a 0.5% decline. Here’s a look at the monthly change in retail sales by category: -5.5% gas stations -2.5% department stores -2.1% electronics stores -2.1% building supply stores -1.7% clothing retailers -1.6% cars, parts stores -1.2% furniture stores 0.0% grocery stores +0.1% restaurants, bars +0.2% sporting, hobby stores +0.3% health, personal care stores +1.9% online
Continue Reading -->Coffee With Greta: Wholesale Inflation Tumbles
DJIA Futures: +57 (+0.2%) SPX Futures: +11 (+0.3%) NASDAQ Futures: +58 (+0.5%) Good morning friends! Futures are rising as another report points to cooling inflation pressures. Let’s get right to it! Wholesale Inflation Tumbles Wholesale inflation pressures unexpectedly dropped in March. The Bureau of Labor Statistics’ producer price index fell 0.5% monthly and rose just 2.7% year over year. That was better than expectations for the index to be unchanged on a monthly basis and a sharp slowdown from the 4.9% annual gain in February. It was the largest drop in 3 years, driven mostly by lower energy prices. Energy prices tumbled 6.4% last month while food prices rose 0.6%. The core PPI, which excludes food and energy, rose 0.1% monthly and 3.6% annually last month vs expectations for a 0.3% monthly increase. The data points to cooling inflation pressures for Americans as producers pass down price changes to consumers. Weekly Jobless Claims Rise Weekly jobless claims rose more than expected last week, a sign the labor market is continuing to cool. The Labor Department reported 239,000 Americans filed initial unemployment claims. That was up by 11,000 from the previous week and higher than 232,000 expected. But claims still remain below the 270,000 level which economists say would signal a deterioration in the labor market. Continuing jobless claims fell by 13,000 to 1.81 million in the week ending April 1. Delta Jumps On Strong Outlook Delta Airlines (DAL) shares are rising 2.6% ahead of the open despite missing Q1 expectations on the top and bottom line. Here’s how the airline’s results compared to analysts’ estimates: Adjusted EPS: $0.25 vs $0.30 expected Adjusted revenue: $11.84 billion vs $11.99 billion expected But Delta’s Q2 forecast was better than expected, signaling strong travel demand. The airline expects Q2 sales to increase 15% to 17% year over year with adjusted EPS between $2 and $2.25. That topped analysts’ estimates for revenue growth of 14.7% and EPS of $1.66. Delta said it expects “record advance bookings for the summer.” That strong outlook is also boosting other airlines in premarket trade with United Airlines (UAL) shares up 2.8% and American Airlines (AAL) shares up 2.0%. In Case You Missed It The Fed’s March meeting minutes were released on Wednesday and showed officials expect the U.S. economy to fall into a “mild recession” later this year due to the banking crisis. The minutes also showed several members were leaning toward a 50 basis point rate hike at the last meeting prior to the banking problems. Officials said inflation is still “much too high” but stressed they will remain data-dependent in upcoming meetings. American Airlines (AAL) shares tumbled 9.2% on Wednesday after the company updated its Q1 forecast. American said it expects to report Q1 adjusted EPS between $0.01 and $0.05. That was better than the previous outlook for earnings to break even but below analysts’ estimates of $0.06.
Continue Reading -->Coffee With Greta: Stocks Jump On Cool CPI
DJIA Futures: +225 (+0.7%) SPX Futures: +34 (+0.8%) NASDAQ Futures: +135 (+1.0%) Good morning friends! Futures are jumping after a better-than-expected March CPI release. Let’s get right to it! March CPI Cooler Than Expected Inflation pressures continued to cool in March. The Bureau of Labor Statistics’ consumer price index rose 0.1% monthly and 5% year over year. That was better than expectations for a 0.2% monthly and 5.1% annual gain. Excluding food and energy, the core CPI rose 0.4% monthly and 5.6% annually, in line with expectations. Energy prices continued to decline on both a monthly and annual basis. Gas dropped 4.6% monthly and 17.4% annually while oil prices fell 4.0% monthly and 14.2% year over year. Grocery prices also fell 0.3% monthly but were up 8.4% annually. This data is good news for the Fed’s plans to pause rate hikes soon. CME Group’s FedWatch Tool shows just over 69% of traders anticipating a 25 basis point hike at the May 3 meeting. The Fed will also release the minutes of its February meeting at 2:00 p.m. ET today. That readout will give the market more insight into the FOMC’s discussion around when it will be appropriate to pause rate hikes. Triton International Surges On Takeover Deal Triton International (TRTN) shares are surging 30.6% ahead of the open after announcing a takeover deal. The company will be acquired by Brookfield Infrastructure Partners (BIP). The deal is a take-private acquisition that values Triton’s equity at more than $4 billion, with an enterprise value of $13.3 billion. Triton shareholders will receive $85 per share in cash and stock. BIP shares are also up 0.9% in premarket trade. Mortgage Demand Jumps Mortgage demand jumped last week as rates dropped to a two-month low. The Mortgage Bankers Association reported purchase applications rose 8% weekly and were down 31% year over year. Refinance applications were flat weekly and 57% lower annually. The average 30-year fixed contract rate decreased to 6.30% from 6.40%, the lowest level in two months. In Case You Missed It Optimism among small business owners edged lower in March but still came in higher than expectations. The National Federation of Independent Business’s Optimism index dipped to 90.1 last month from 90.9 in February. That was better than economists’ expectations for 89. Owners expressed concerns about the short-term future with the number of those who expect real sales to be higher in the next six months dropping sharply. The International Monetary Fund slashed its global growth forecast on Tuesday. The group now expects global GDP growth to be around 3% five years from now. That’s the lowest forecast since 1990. The IMF’s World Economic Outlook report said, “The world economy is not currently expected to return over the medium term to the rates of growth that prevailed before the pandemic.” The group expects 2.8% growth this year and 3% in 2024. The U.S. economy is expected to expand 1.6% this year.
Continue Reading -->Coffee With Greta: Inflation Data Looms
DJIA Futures: +22 (+0.1%) SPX Futures: +4 (+0.1%) NASDAQ Futures: -3 (-0.03%) Good morning friends! Futures are flat as traders look ahead to several Fed speeches and key inflation data. Let’s get right to it! Fed Speakers Coming Up The major indexes are little changed ahead of the open as traders await speeches from several Fed officials today. The Chicago, Philadelphia, and Minneapolis Fed Presidents are all set to speak today. All 3 are voting members of the Federal Open Market Committee this year. Traders are looking for more clues about the bank’s plans for the May 3 meeting. CME Group’s FedWatch Tool shows over 70% of traders anticipating a 25 basis point hike. The latest inflation data is also looming over the market with the March CPI set to be released Wednesday morning. CarMax Earnings Top Expectations CarMax (KMX) shares are rallying 6.3% ahead of the open after beating fiscal Q4 profit expectations. Here’s how the used-car seller’s results compared to analysts’ estimates: EPS: $0.44 vs $0.20 expected Revenue: $5.7 billion vs $6.1 billion expected Comparable-store sales fell 22% vs analysts’ expectations for a 27% drop. The CEO said, “Our deliberate steps to navigate the pressures facing the used car industry are driving sequential improvements in our business.” Albertsons Slips After Consumer Warning Albertsons (ACI) shares are slipping 0.4% in premarket trade despite beating fiscal Q4 expectations on the top and bottom line. Here’s how the grocer’s results compared to analysts’ expectations: Adjusted EPS: $0.79 vs $0.68 expected Revenue: $18.27 billion vs $18.22 billion expected But the CEO said the company has prepared for ““a more difficult consumer environment, and are expecting significant labor investments and inflationary cost increases” in fiscal 2023. Albertsons is set to be acquired by Kroger (KR) with the deal reportedly on track to be completed in early 2024. Moderna Delays Flu Shot Moderna (MRNA) shares are dropping 4.5% ahead of the open after the company said it’s delaying its flu vaccine. The pharmaceutical giant said it has not enrolled enough cases in its late-stage trial of the shot to determine if it’s successful or not. Moderna will continue testing after the first late-stage study found the shot to be less effective against influenza B than an already approved vaccine. The company said Monday it expects to launch six major vaccines in the next few years. In Case You Missed It Tesla (TSLA) cut prices in the U.S. for the fifth time since January on Monday. The automaker’s website showed both versions of the Model 3 sedans were lowered by $1,000 and the Model Y crossover price was lowered by $2,000. Tesla also cut prices on both versions of the Model S and Model X by $5,000.
Continue Reading -->Coffee With Greta: Recession Fears Return
DJIA Futures: -127 (-0.4%) SPX Futures: -23 (-0.6%) NASDAQ Futures: -101 (-0.8%) Good morning friends! Futures are falling as recession fears grip Wall Street. Let’s get right to it! Recession Fears Return Stocks are falling ahead of the opening as traders grow more concerned about a recession. The March jobs report on Friday continued to show job growth slowing. The Labor Department reported the U.S. economy added 236,000 jobs last month while the unemployment rate ticked lower to 3.5%. That compared to expectations for 238,000 jobs and a 3.6% unemployment rate and was down from 326,000 jobs in February. Average hourly earnings rose 0.3% monthly and 4.2% year over year, the smallest annual increase since June 2021. The market is looking ahead to key inflation data this week with the March CPI on Wednesday, PPI on Thursday, and retail sales on Friday. That data will help traders determine what the Fed may do at the May 3 meeting but currently CME Group’s FedWatch Tool shows 66.7% betting on another 25 basis point rate hike. Earnings season also kicks off this week with reports from big banks like JPMorgan Chase (JPM), Wells Fargo (WFC), and Citigroup (C) at the end of the week. Pioneer Jumps On Potential Exxon Merger Pioneer Natural Resources (PXD) shares are rallying 6.1% ahead of the open following reports that Exxon Mobil (XOM) is in talks to purchase the oil driller. The Wall Street Journal first reported that the two companies have held informal talks so far. Exxon executives have also reportedly discussed a merger with at least one other company. XOM shares are down 1.0% in premarket trade. Tesla To Open New Megafactory In Shanghai Tesla (TSLA) shares are falling 2.8% ahead of the open after the company said it will open a new Megafactory in Shanghai. In a tweet on Sunday, Tesla said the new factory will be capable of producing 10,000 Megapacks per year. Megapacks are large-scale batteries used for battery storage at power stations. Tesla reportedly plans to begin construction on the Shanghai facility in Q3 and aims to start production in mid-2024.
Continue Reading -->Coffee With Greta: Stocks Fall Ahead Of Early Weekend
DJIA Futures: -17 (-0.1%) SPX Futures: -4 (-0.1%) NASDAQ Futures: -44 (-0.3%) Good morning friends! Futures are falling as traders assess the health of the U.S. labor market and economy. Let’s get right to it! Weekly Jobless Claims Drop After Large Revision Weekly jobless claims were higher than expected last week despite a large drop. The Labor Department reported 228,000 Americans filed initial unemployment claims. That was down by 18,000 from the previous week, which was revised higher by 48,000 to 246,000. Last week’s total was higher than expectations for 200,000. Continuing claims rose by 6,000 to 1.82 million in the week ending March 25. Although the official March jobs report comes out tomorrow morning, the stock market will be closed in observance of Good Friday. The report is expected to show the U.S. economy added 238,000 jobs last month with the unemployment rate unchanged at 3.6%. Costco Drops On Weak March Sales Costco (COST) shares are falling 3.2% ahead of the open after the retailer reported weak sales numbers for March. Same-store sales decreased 1.1% annually last month to $21.71 billion. That drop is an indicator consumers may be pulling back on spending due to uncertainty about the economy. But part of the decline was also due to lower gas prices. Costco estimates those lower prices impacted same-store sales growth by about 2%. Excluding the effect of gas prices and foreign exchange rates, same-store sales rose 2.6% in March vs the 5% gain in February. Levi Drops Despite Earnings Beat Levi Strauss (LEVI) shares are down 3.9% in premarket trade after reporting fiscal Q1 results and reaffirming its full-year guidance. Here’s how the denim retailer’s results compared to analysts’ expectations: Adjusted EPS: $0.34 vs $0.32 expected Revenue: $1.689 billion vs $1.623 billion expected The CFO said Levi was able to reduce inventory levels during the quarter. He also reaffirmed the company’s previous outlook saying, “We are reaffirming our annual revenue and EPS guidance reflecting a cautious outlook on the macro-environment though we remain excited about the momentum in our DTC and international businesses.” That forecast is for full-year adjusted EPS of $1.30 to $1.40 and revenue of $6.3 billion to $6.4 billion. Oil On Track For Weekly Gain Oil prices are higher this morning and on track for their third straight weekly gain after OPEC+’s surprise production cut. West Texas Intermediate crude futures are up 0.1% to just under $81 bbl while Brent crude futures are up 0.2% to over $85 bbl. Both contracts have gained more than 6% this week after the OPEC+ vote last weekend. But concerns about a slowdown in the U.S. economy have kept a lid on price gains. In Case You Missed It Business activity in the U.S. services sector slowed sharply in March. The Institute for Supply Management’s services PMI dropped nearly 4 points to a three-month low of 51.2% last month. That was lower than economists’ expectations for 54.3%. New orders sank 10.4 points to 52.2%, which was the lowest reading since the end of 2022. But inflation pressures cooled. The prices paid index fell 6.1 points to 59.5%, the smallest reading since July 2020.
Continue Reading -->Coffee With Greta: Private Job Growth Slides
DJIA Futures: -39 (-0.1%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -15 (-0.1%) Good morning friends! Futures are slipping despite new data showing a cool-down in the labor market. Let’s get right to it! Private Job Growth Slows The U.S. private sector added far fewer jobs than expected in March. Payroll firm ADP reported private employers hired 145,000 workers last month. That was down from 261,000 in February and lower than 210,000 expected. ADP’s chief economist said, “Our March payroll data is one of several signals that the economy is slowing. Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down.” Annual pay rose 6.9% in March, down from 7.2% in February. Leisure and hospitality added 98,000 workers, trade, transportation, and utilities added 56,000, construction added 53,000, natural resources and mining added 47,000, and education services grew by 17,000. Financial activities lost 51,000 workers in March, professional and business services lost 46,000, and manufacturing lost 30,000. This data comes ahead of the Labor Department’s official March jobs report on Friday which is expected to show a gain of 238,000 jobs with the unemployment rate unchanged at 3.6%. February Trade Deficit Jumps The U.S. trade deficit jumped more than expected in February as both imports and exports declined. The Commerce Department reported that gap rose 2.7% to $70.5 billion. That was a four-month high and above economists’ expectations for $69.1 billion. Imports fell 1.5% to $321.7 billion while exports slid 2.7% to $251.2 billion. Mortgage Demand Drops Mortgage demand fell last week even amid lower rates as a lack of home listings puts pressure on buyers. The Mortgage Bankers Association reported purchase applications fell 4% weekly and 35% year over year. That drop came as new listings were down 20% year over year in March with total inventory about half of what it was in March 2019, pre-pandemic. Refinance applications also dropped 5% weekly and 59% annually. The average 30-year fixed contract rate fell to 6.40% from 6.45%. J&J Reaches Talc Powder Cancer Settlement Johnson & Johnson (JNJ) shares are rising 2.9% ahead of the open after the company agreed to pay $8.9 billion to settle cancer claims related to its talc-based baby powder products. That settlement will be paid over the next 25 years and J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection. J&J’s worldwide vice president of litigation said, “Resolving this matter through the proposed reorganization plan is both more equitable and more efficient, allows claimants to be compensated in a timely manner, and enables the Company to remain focused on our commitment to profoundly and positively impact health for humanity.” But he also added, “The Company continues to believe that these claims are specious and lack scientific merit.” In Case You Missed It The Labor Department’s job openings and labor turnover survey shows there were 9.93 million available jobs in February. That was lower than expectations and the first month below 10 million since May 2021. Openings still outnumbered available workers by nearly 1.7 to 1. But the data is a sign the Fed’s fight against inflation is beginning to have an impact on the hot labor market.
Continue Reading -->Coffee With Greta: Stocks Jump Ahead Of Jobs Data
DJIA Futures: +21 (+0.1%) SPX Futures: +9 (+0.2%) NASDAQ Futures: +32 (+0.2%) Good morning friends! Futures are rising as traders prepare for key labor market data over the next few days. Let’s get right to it! Jamie Dimon Warns Banking Crisis Is Not Over JPMorgan Chase (JPM) CEO Jamie Dimon says the banking crisis is still a threat and the regulatory process needs to be reimagined. In his annual letter to shareholders on Tuesday, Dimon said, “As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come.” But he also said the recent issues are “nothing like what occurred during the 2008 global financial crisis.” Dimon said regulation should be “less academic, more collaborative” moving forward. He pointed out that the Fed’s recent bank stress tests didn’t appropriately assess the risk of a rapid rise in interest rates on government bonds. Dimon said, “This is not to absolve bank management – it’s just to make clear that this wasn’t the finest hour for many players. All of these colliding factors became critically important when the marketplace, rating agencies and depositors focused on them.” Oil Prices Rise Oil prices are rising again today, extending the large gains seen on Monday. West Texas Intermediate crude futures are up 0.8% at over $81 bbl while Brent crude futures are up 0.7% at over $85.50 bbl. The gains come after OPEC+ voted to cut production over the weekend. Those cuts have led most analysts to raise their Brent price forecasts to around $100 per barrel by year-end. Virgin Orbit Files For Bankruptcy Virgin Orbit (VORB) shares are plunging 20.6% ahead of the open after filing for Chapter 11 bankruptcy protection. The company submitted that filing after failing to secure funding and CEO Dan Hart told employees it would cease operations last week. In a statement today, he said, “While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business.” Virgin Orbit is looking to sell its assets with Hart saying, “We believe that the cutting-edge launch technology that this team has created will have wide appeal to buyers as we continue in the process to sell the Company. At this stage, we believe that the Chapter 11 process represents the best path forward to identify and finalize an efficient and value-maximizing sale.” Coming Up: JOLTS The first piece of key labor market data is set to be released today. The Labor Department releases its job openings and labor turnover survey for February at 10:00 a.m. ET. That survey is expected to show the number of job openings dropped to 10.5 million from 10.8 million in February. In Case You Missed It Activity in the U.S. manufacturing sector declined more than expected in March. The Institute for Supply Management’s manufacturing PMI dropped to 46.3% from 47.7% in February. That was the lowest level since May 2020 and the fifth straight monthly decline. Any reading below 50% signals a contraction in the sector.
Continue Reading -->Coffee With Greta: Second Quarter Kicks Off
DJIA Futures: +107 (+0.3%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -119 (-0.9%) Good morning friends! Futures are mixed as oil prices surge and Q2 begins. Let’s get right to it! Oil Prices Surge After Surprise OPEC+ Production Cuts Oil prices are surging this morning after OPEC+ announced it was cutting output by 1.16 million barrels per day over the weekend. West Texas Intermediate crude futures are up 6.1% to over $80 bbl while Brent crude futures are up 6.1% to just under $85 bbl. The cuts will start in May until the end of 2023 and Saudi Arabia called it a “precautionary measure” targeted at stabilizing the oil market. Analysts are warning oil may hit $100 bbl again due to the cuts as China reopens, Russia has cut its output, and demand is higher in the summer months ahead. WWE, UFC Agree On Merger World Wrestling Entertainment (WWE) shares are falling 6.3% in premarket trade after agreeing to merge with UFC. The merger will create a new publicly traded company controlled by Endeavor Group (EDR). EDR shares are up 3.9% ahead of the open. Endeavor will own a 51% stake in the new company and WWE shareholders will own the remaining 49%. The deal values WWE at $9.3 billion and UFC at $12.1 billion. The name of the new company will be announced at a later date. Tesla Q1 Deliveries Tesla (TSLA) shares are slipping 3.6% ahead of the open after the company reported Q1 deliveries and production numbers over the weekend. On Sunday, the electric automaker reported it delivered 422,875 vehicles last quarter and produced 440,808. That was a 36% year over year increase in deliveries and up 4% from Q4 2022. But it was short of analysts’ average estimate for 432,000 deliveries. Tesla delivered 10,965 of the higher-priced Model S and Model X vehicles and 412,180 of the lower-priced Model 3 and Model Y. McDonald’s Expected To Announce Corporate Layoffs McDonald’s (MCD) shares are up 0.4% in premarket trade following reports the company is temporarily closing its U.S. offices this week and preparing to announce corporate layoffs. The Wall Street Journal reported that McDonald’s asked employees to work from home Monday through Wednesday this week so it can deliver staffing decisions virtually. In a memo, McDonald’s said, “During the week of April 3, we will communicate key decisions related to roles and staffing levels across the organization.” In Case You Missed It Consumer sentiment dropped more than expected at the end of March, hitting a 3-month low on Friday. The index dropped to 62 from the flash reading of 63.4. Sentiment about current economic conditions fell more than 4 points to 66.3, while the 6-month expectations index dropped more than 2 points to 59.2. But inflation expectations improved. Consumers expect inflation to be at 3.6% 1-year from now, down from 4.1% in in February.
Continue Reading -->Coffee With Greta: Quarter End
DJIA Futures: +115 (+0.4%) SPX Futures: +9 (+0.2%) NASDAQ Futures: +7 (+0.1%) Good morning friends! Futures are rising on the final day of Q1 after the release of better-than-expected inflation data. Let’s get right to it! PCE Inflation Cooler Than Expected The Fed’s preferred inflation gauge rose less than expected in February. The personal consumption expenditures (PCE) price index rose 0.3% monthly and 5.0% year over year. That was better than expectations for a 0.4% monthly gain and 5.1% annually. The core PCE price index, which excludes food, energy, and trade, rose 0.3% monthly and 4.6% year over year. That was also cooler than 0.4% monthly and 4.7% annually expected. Both were a cooldown from January as the Fed’s fight against inflation continues. Personal incomes also rose more than expected up 0.3% monthly in February vs 0.2% expected. But personal spending was lower than expected, rising 0.2% vs 0.3% estimated. Virgin Orbit To Cease Operations Virgin Orbit (VORB) shares are plummeting 41.9% ahead of the open as the company is set to shut down. CEO Dan Hart told employees during an all-hands meeting Thursday afternoon that the company is ceasing operations “for the foreseeable future” and nearly all employees will be laid off. Hart said, “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company.” All but 100 employees will be eliminated, representing about 90% of the workforce. Each laid off employee will receive a severance package with a cash payment, extension of benefits, and support in finding a new job. Hart said a “direct pipeline” has been set up with sister company Virgin Galactic (SPCE) for hiring. Quarter-End Today is the final day of March, officially marking the end of the first quarter. The major indexes are mixed for the quarter. The S&P 500 and the Nasdaq are both on track for winning quarters, up 5.5% and 14.8% respectively. The Dow Jones meantime is down slightly for Q1. For the month, the S&P has gained 2%, the Nasdaq is up 4.9%, and the Dow is up 0.6%. Coming Up: Consumer Sentiment The University of Michigan releases its final March consumer sentiment index at 10:00 a.m. ET. That index is expected to decline slightly to 63 from the flash reading of 63.4 earlier this month. The survey also includes consumers’ inflation expectations which the Fed has been monitoring in recent months. In Case You Missed It Ford (F) shares rose 2% on Thursday after the automaker resumed production and hiked prices on the F-150 Lightning electric pickup truck. The company said it has resumed full production of the truck after pausing back in February due to a battery fire. The F-150 Lightning Pro will now start at a base price of $60,000, roughly 50% higher than the original starting price last Spring. The mid-level Lariat trim will range from $74,500 to just under $76,000. And the top-line Platinum trim will range between $96,900 to just over $98,000.
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