All posts by Greta Wall
Coffee With Greta: Stocks Rally In China
DJIA Futures: -55 (-0.2%) SPX Futures: -1 (-0.01%) NASDAQ Futures: +14 (+0.1%) Good morning friends! Futures are mixed amid hopes China will relax some Covid restrictions as the country vaccinates more elderly and reported a decline in infections. Let’s get right to it! Hong Kong, Chinese Stock Markets Rally The Hang Seng index in Hong Kong rallied 5.2% overnight while mainland China’s Shanghai Composite jumped 2.3%, and the Shenzhen Component rose 2.4%. The gains came after Chinese health authorities reported an increase in senior vaccination rates in the country. Authorities say 65.8% of people “over age 80” have received booster shots, a key step toward lifting restrictions. The government also reported a decline in Covid infections from Sunday to Monday, the first in more than a week. The news prompted hope the government will lift restrictions that caused mass protests over the weekend. Chinese stocks listed in the U.S. are also rallying ahead of the open. Alibaba (BABA) is up 5.1%, JD.com (JD) is rising 6.8%, and Pinduoduo (PDD) is up 5.3%. Oil Prices Jump On Hopes of Easing Restrictions In China Oil prices are rebounding today on those hopes of easing Covid restrictions in China. West Texas Intermediate crude futures are up 2% to just under $79 bbl while Brent crude futures are up 2.5% to over $85 bbl. Expectations for another OPEC+ production cut are also supporting prices. The group meets again December 4 and analysts have suggested weaker demand out of China could prompt another cut. Upcoming Data The September S&P Case-Shiller home price index is set to be released momentarily. That index is expected to show another sharp decline in home prices as mortgage rates surged. Prices dropped 9.8% in August. The Federal Housing Finance Agency also releases its home price index for September at the same time. Then, the University of Michigan’s November consumer confidence index will be out at 10:00 a.m. ET. That index is expected to fall to 100 from 102.5 in October. BlockFi Files for Bankruptcy Crypto firm BlockFi filed for Chapter 11 bankruptcy protection on Monday. This comes after the collapse of crypto firm FTX and BlockFi listed an outstanding $275 million loan to FTX US in the filing. The firm previously halted withdrawals, saying it had “significant exposure to FTX and associated corporate entities that encompasses obligations owed to us by Alameda, assets held at FTX.com, and undrawn amounts from our credit line with FTX.US.”
Continue Reading -->Coffee With Greta: Unrest In China Spooks Wall Street
DJIA Futures: -195 (-0.6%) SPX Futures: -30 (-0.7%) NASDAQ Futures: -77 (-0.7%) Good morning friends! Futures are falling as protests against Covid restrictions in China weigh on global markets. Let’s get right to it! Protests Erupt Across China Futures are falling as protests break out in China against the country’s Covid controls. Citizens have taken to the streets of Beijing, Shanghai, Wuhan, and Lanzhou. The unrest reportedly began in Xinjiang after a building fire killed 10 people and residents reportedly blamed Covid restrictions for preventing lives from being saved. Local authorities quickly declared the Covid risk had subsided afterward and lifted restrictions. China operates under a zero-Covid policy and has enacted strict lockdowns during any new outbreaks. Oil Prices Tumble To New 2022 Low Oil prices are tumbling today amid the unrest in China. West Texas Intermediate crude futures are down 2.7% to just over $74 bbl while Brent crude futures are down 3% to just over $81 bbl. WTI hit the lowest level since December 22, 2021 earlier in the session at $73.60 bbl. Both contracts have erased their gains for the year as the protests in China prompt more worries about demand. The falling oil prices are dragging down energy stocks in premarket trade with Exxon Mobil (XOM) dropping 2.2% and Chevron (CVX) falling 1.6%. Apple Faces Production Issues From China Factory Protests Apple (AAPL) shares are slipping 2.2% ahead of the open as reports say the tech giant is facing a production shortfall due to factory protests in China. Bloomberg reported the company may fall short of its iPhone 14 Pro production target by nearly 6 million units worldwide. Workers at the Foxconn manufacturing plant in Zhengzhou are among those protesting against Covid restrictions. But the Bloomberg report said Foxconn may be able to make up for that shortfall. Apple already cut its production target for the iPhone 14 by 3 million units earlier this month due to protests at the facility. Online Black Friday Sales Hit Record Shoppers spent a record $9.12 billion online shopping on Black Friday this year. That’s according to new data from Adobe Analytics which said online sales surged 221% over an average day in October. Toy sales were up 285% compared to normal shopping while exercise equipment sales jumped 218%. Overall Black Friday online sales were up 2.3% year over year. The surge came ahead of Cyber Monday today, which is the biggest online shopping day of the year. Adobe Analytics expects shoppers to spend $11.2 billion online today, which would be up 5.1% year over year.
Continue Reading -->Coffee With Greta: Traders Hope For Dovish Fed Minutes
DJIA Futures: -72 (-0.2%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -11 (-0.1%) Good morning friends! Futures are slipping as traders look ahead to the Fed minutes and wait to find out whether the bank’s last meeting turned dovish. Let’s get right to it! Nordstrom Reports Surprise Q3 Loss Nordstrom (JWN) shares are falling 8% ahead of the open after reporting a surprise Q3 loss and lower revenue. The company blamed the $20 million loss on “supply-chain impairments”. Here’s how the retailer’s results compared to analysts’ expectations: Loss per share: $0.13 vs $0.11 EPS expected Revenue: $3.43 billion vs $3.49 billion expected Nordstrom reaffirmed its 2022 guidance for revenue growth of 5% to 7% and adjusted EPS between $2.30 and $2.60. HP Announces Global Layoffs HP Inc (HPQ) shares are up 2.9% in premarket trade after announcing layoff plans following lower fiscal Q4 sales. Here’s how the computer maker’s results compared to analysts’ expectations: Adjusted EPS: $0.85 vs $0.84 expected Revenue: $14.8 billion vs $14.69 billion expected Revenue dropped 11% year over year and unadjusted net income swung to a $2 million loss from profit of $3.10 billion a year earlier. HP forecast fiscal Q1 adjusted EPS of $0.70 to $0.80 vs analysts’ estimates of $0.86. The company expects full-year adjusted EPS of $3.20 to $3.60 and free cash flow of $3 billion to $3.5 billion. Analysts were expecting EPS of $3.54 and free cash flow around $3.88 billion. HP announced it plans to cut up to 10% of its workforce following those results. The layoffs will impact 4,000 to 6,000 employees globally over the next three years. The company said its “Future Ready Transformation plan” should save it $1.4 billion or more over that three year time period. Weekly Jobless Claims Jump to 3-Month High Weekly jobless claims rose to the highest level since August last week. The Labor Department reported 240,000 Americans filed initial claims for unemployment benefits. That was up 17,000 from the previous week and higher than expectations for 225,000. Continuing claims also rose by 50,000 to 1.55 million in the week ending November 12. Mortgage Demand Jumps As Rates Dip Mortgage demand rose last week as rates declined slightly. The Mortgage Bankers Association reported overall applications rose 2.2% on a weekly basis. Purchase applications rose 3% weekly but were still down 41% year over year. Refinance application rose 2% weekly and were still 86% lower than a year ago. The gains came as rates eased last week. The average 30-year contract rate decreased to 6.67% from 6.90%. Busy Day of Data Traders will get a rush of economic data today ahead of the stock market closure for Thanksgiving on Thursday. S&P Global releases its November manufacturing and services PMIs at 9:45 a.m. ET. The University of Michigan’s final November consumer sentiment index and consumer inflation expectations survey will be released at 10:00 a.m. ET. The Census Bureau reports October new home sales at 10:00 a.m. as well. And then the Fed releases the minutes of its November meeting at 2:00 p.m. ET. Traders are looking for signs of the Central Bank turning dovish as recent data has shown inflation cooling in the wake of the bank’s rate hikes.
Continue Reading -->Coffee With Greta: More Retail Earnings
DJIA Futures: +139 (+0.4%) SPX Futures: +18 (+0.5%) NASDAQ Futures: +45 (+0.4%) Good morning friends! Futures are higher as traders digest more Q3 retail earnings in the light holiday week. Let’s get right to it! Dollar Tree Slips On Weaker Profit Outlook Dollar Tree (DLTR) shares are falling 2.1% ahead of the open despite beating Q3 expectations. Here’s how the discount retailer’s results compared to analysts’ estimates: EPS: $1.20 vs $1.18 expected Revenue: $6.94 billion vs $6.84 billion expected Same-store sales rose 6.5% year over year. Traders soured on the stock as Dollar Tree said it expects full-year profits to be in the lower end of its prior outlook due to inflationary cost pressures. The retailer raised it sales outlook to between $28.14 billion and $28.28 billion and forecast EPS in the lower range of $7.10 to $7.40. Dick’s Sporting Goods Tops Q3 Expectations, Raises Outlook Dick’s Sporting Goods (DKS) shares are up 0.9% in premarket trade after beating Q3 expectations and hiking its outlook. Here’s how the sporting goods retailer’s results compared to analysts’ expectations: Adjusted EPS: $2.60 vs $2.27 expected Revenue: $2.96 billion vs $2.7 billion expected Comparable store sales were up 6.5% year over year. Dick’s raised its full-year earnings outlook and is now expecting a smaller decline in comparable sales. The retailer expects full-year adjusted EPS between $11.50 and $12.10 vs $10 to $12 previously. Comparable sales are expected to fall 1.5% to 3% for the year vs previous guidance for a 2% to 6% drop. Best Buy Rallies On Q3 Earnings Beat Best Buy (BBY) shares are rallying 8.2% ahead of the open after beating Q3 expectations. Here’s how the electronics retailer’s results compared to analysts’ expectations: Adjusted EPS: $1.38 vs $1.03 Revenue: $10.59 billion vs $10.31 billion Comparable sales fell 10.4% year over year vs analysts’ estimates for a 12.9% decline. Best Buy reiterated its outlook for the key holiday quarter and improved its full-year outlook. The retailer expects full-year same-store sales to fall about 10% vs previous guidance for down about 11%. Zoom Drops On Light Forecast Zoom Video Communications (ZM) shares are tumbling 7.5% in premarket trade as disappointing sales guidance overshadows a Q3 earnings beat. Here’s how the company’s results compared to analysts’ expectations: Adjusted EPS: $1.07 vs $0.84 expected Revenue: $1.10 billion, in line with expectations Revenue was up 5% year over year vs 8% growth in Q2. But net income plummeted by $291.9 million. Zoom lowered its full-year revenue guidance, now expecting $4.37 billion to $4.38 billion in sales vs the average $4.4 billion analyst estimate. The company expects full-year adjusted EPS of $3.91 to $3.94, beating analysts’ expectations and up from its previous forecast.
Continue Reading -->Coffee With Greta: Disney Bucks the Downtrend
DJIA Futures: -21 (-0.1%) SPX Futures: -15 (-0.4%) NASDAQ Futures: -62 (-0.5%) Good morning friends! Futures are slipping as the holiday-shortened week begins but Disney shares are bucking the downtrend. Let’s get right to it! Iger Back, Chapek Out At Disney Walt Disney (DIS) shares are rallying 10% ahead of the open following news that former CEO Bob Iger is back in the position. Disney announced late Sunday it had reappointed Iger as CEO effective immediately, replacing Bob Chapek. The company sharply missed Q3 expectations earlier this month as costs swelled. Disney said Iger has signed on to serve as CEO for two years “with a mandate from the Board to set the strategic direction for renewed growth and to work closely with the Board in developing a successor to lead the Company at the completion of his term.” Chinese Stocks Slip Chinese stocks listed in the U.S. are falling in premarket trade amid the latest surge in Covid cases in China. Alibaba (BABA) shares are down 3.1%, JD.com (JD) is falling 5.2%, Baidu (BIDU) is down 2.1%, and Pinduoduo (PDD) is sliding 2.6%. Three Covid-related deaths were reported in Beijing over the weekend, the first since May. The overall number of cases in the country is also surging. China has implemented strict lockdown measures amid outbreaks as the country operates on a zero-Covid policy. Oil Prices Fall On Chinese Demand Concerns The Covid outbreak in China is also putting pressure on oil prices this morning. West Texas Intermediate crude futures are down 0.7% to under $80 bbl while Brent crude futures are down 0.6% to just over $87 bbl. Both benchmarks closed Friday at the lowest since September 27. A rebound in the strength of the U.S. dollar is also putting more pressure on prices. Thanksgiving Week This will be a shortened week with the Thanksgiving holiday on Thursday. The stock market will be closed Thursday and open until 1:00 p.m. on Friday. Trading volume is typically light during this holiday week as many traders take time off. The bulk of economic data for the week comes out on Wednesday. Those reports include October durable goods and capital goods, weekly jobless claims, S&P manufacturing and services PMI, November consumer sentiment, October new home sales, and the Fed’s November meeting minutes.
Continue Reading -->Coffee With Greta: Ending the Week Higher
DJIA Futures: +225 (+0.7%) SPX Futures: +35 (+0.9%) NASDAQ Futures: +109 (+1%) Good morning friends! Futures are higher as traders digest the latest batch of positive retail earnings and assess the Fed’s plan for interest rates. Let’s get right to it! Gap Rallies On Surprise Q3 Profit Gap Inc (GPS) shares are up 8.5% ahead of the open after reporting a surprise profit in the third quarter. Here’s how the clothing retailer’s results compared to analysts’ expectations: Adjusted EPS: $0.71 vs $0.00 expected Revenue: $4.04 billion vs $3.82 billion expected The company did not issue full-year guidance but said it expects overall net sales to be down mid-single digits yera-over-year in Q4. Gap made progress in reducing extra inventory last quarter but the CFO said the company will “continue to take a prudent approach in light of the uncertain consumer and increasingly promotional environment as we look to the remainder of fiscal 2022.” Inventories were up 12% year over year in Q3 vs 37% in Q2 and 34% in Q1. Foot Locker Surges On Profit Beat Foot Locker (FL) shares are surging 14% ahead of the open after beating Q3 expectations and hiking its full-year outlook. Here’s how the shoe retailer’s results compared to analysts’ estimates: Adjusted EPS: $1.27 vs $1.11 expected Revenue: $2.17 billion vs $2.09 billion expected Same-store sales: +0.8% vs -6% expected Foot Locker reduced excess inventory with merchandise inventory up 29.5% year over year in Q3 vs 52.1% in Q2. The company forecast full-year adjusted EPS of $4.42 to $4.50 vs $4.25 to $4.45 previously. Foot Locker expects net sales to fall 4% to 5% vs 6% to 7% previously and same-store sales are expected to be down 4% to 5% vs 8% to 9% previously. Ross Stores Jumps On Upbeat Outlook Ross Stores (ROST) shares are soaring 16.3% ahead of the open after topping Q3 estimates and raising its full-year guidance. Here’s how the discount retailer’s results compared to analysts’ expectations: EPS: $1.00 vs $0.81 expected Revenue: $4.6 billion vs $4.37 billion expected Same-store sales: -3% vs -7.8% expected Ross now expects full-year EPS of $4.21 to $4.34 compared to the prior forecast of $3.84 to $4.12. Same-store sales are expected to be flat to down 2% in Q4 with EPS of $1.13 to $1.26. That topped analysts’ estimates for same-store sales to decline 4.6% and EPS of $1.13. Tesla Recalls 30,000 Vehicles Tesla (TSLA) shares are up 1.1% in premarket trade despite the electric automaker recalling about 30,000 vehicles. That recall was issued due to a problem that may cause the front passenger air bag to deploy incorrectly in nearly 30,000 Model X vehicles. Tesla issued the recall voluntarily and said it is not aware of any crashes, injuries, or deaths related to the problem. The issue will be fixed through an over-the-air software update. Existing Home Sales On Deck The National Association of Realtors reports October existing home sales at 10:00 a.m. ET today. That report is expected to show sales fell to a seasonally adjusted annual rate of 4.37 million units last month from 4.71 million in September. The housing market has seen a steep decline in activity as mortgage rates surge.
Continue Reading -->Coffee With Greta: Fed Hawks Are Still Circling
DJIA Futures: -370 (-1.1%) SPX Futures: -50 (-1.3%) NASDAQ Futures: -172 (-1.5%) Good morning friends! Futures are falling after hawkish comments from a key Fed official. Let’s get right to it! Hawkish Fed Comments Spook Traders St Louis Fed President James Bullard is not backing a pivot on rate hikes yet. In a speech this morning, Bullard said rate hikes so far “have had only limited effects” on inflation. He said “the policy rate is not yet in a zone that may be considered sufficiently restrictive” and to do so “the policy rate will need to be increased further”. Bullard is a voting member of the Federal Open Market Committee this year. A chart he used in the presentation reportedly suggested that “sufficiently restrictive” rate could be around a 5% to 7% range. The federal funds rate is currently in a range of 3.75% to 4%. Treasury yields popped following the comments with the 2-year yield up 6 basis points to 4.45% and the 10-year yield rising 9 basis points to 3.79%. Home Construction Falls Less Than Expected U.S. home construction slowed less than expected in October. The Census Bureau reported housing starts dropped 4.2% to a seasonally adjusted annual rate of 1.43 million units. That was down 8.8% year over year but better than economists’ expectations for an SAAR of 1.41 million units. Single-family starts dropped 6.1% to an SAAR of 855,000 units while multi-family starts slipped 0.5% to an SAAR of 556,000 units. Permits issued for future home builds also declined less than expected. The report shows permits were issued at a seasonally adjusted annual rate of 1.53 million units, down 2.4% from September. Single-family permits fell 3.6% to an SAAR of 839,000 units while multi-family starts dropped 1.9% to an SAAR of 633,000 units. This comes a day after the National Association of Homebuilders sentiment index fell more than expected this month to 33, the lowest reading since June 2012. That was down 5 points from October and marked 11 straight months of falling sentiment. Builder sentiment about current sales conditions dropped 6 points to 39, buyer traffic fell 5 points to 20, and six-month sales expectations fell 4 points to 31. Weekly Jobless Claims Fall Weekly jobless claims fell more than expected last week. The Labor Department reported 220,000 Americans filed initial claims for unemployment benefits. That was down 6,000 from the previous week and lower than 225,000 expected. Continuing claims rose by 13,000 to 1.51 million in the week ending November 5. That’s the first time continuing claims have topped 1.5 million since March 2021. Nvidia Slips On Mixed Results Nvidia (NVDA) shares are falling 1.3% ahead of the open after reporting mixed Q3 results. Here’s how the chipmaker’s results compared to analysts’ expectations: Adjusted EPS: $0.59 vs $0.69 expected Revenue: $5.93 billion vs $5.77 billion expected Revenue was down 17% year over year while gross margins fell 11.6% to 53.6%. The company attributed those lower margins to an inventory charge caused by low data center chip demand in China. Nvidia forecast $6 billion in Q4 sales, below analysts’ estimates of $6.09 billion. Macy’s Hikes Forecast After Earnings Beat Macy’s (M) shares are up 7.1% in premarket trade after beating Q3 expectations and hiking its guidance. Here’s how the department store chain’s results compared to analysts’ expectations: Adjusted EPS: $0.52 vs $0.19 expected Revenue: $5.23 billion vs $5.2 billion expected Macy’s is not dealing with the same inventory glut as other retailers, with inventory levels up just 4% year over year in Q3. The company forecast annual adjusted EPS of $4.07 to $4.27 vs $4 to $4.20 previously. Macy’s maintained its full-year revenue guidance of $24.34 billion to $24.58 billion. Kohl’s Yanks Outlook Kohl’s (KSS) shares are falling 3% ahead of the open after beating Q3 expectations but pulling its Q4 guidance. Here’s how the retailer’s results compared to analysts’ expectations: Adjusted EPS: $0.82 vs $0.77 expected Revenue: $4.28 billion vs $4.07 billion expected Revenue was down 7% year over year while same-store sales dropped 6.9%. Kohl’s withdrew its full-year guidance, citing volatility in retail and “significant” macroeconomic headwinds. The company also said board member Tom Kingsbury will serve as interim CEO when Michelle Gass leaves in December. Kohl’s has formed a committee to search for a new CEO.
Continue Reading -->Coffee With Greta: Retail Sales Beat, Target Flops
DJIA Futures: -29 (-0.1%) SPX Futures: -6 (-0.1%) NASDAQ Futures: -21 (-0.2%) Good morning friends! Futures are lower as traders digest strong retail sales data against Target’s big earnings miss. Let’s get right to it! October Retail Sales Jump Retail sales rose more than expected in October as the U.S. consumer continues to pay higher prices. The Commerce Department reported retail sales rose 1.3% to $694.5 billion. That was better than economists’ expectations for a 1.2% gain. Retail sales jumped 8.3% year over year. Gasoline stations saw the largest increase with sales up 4.1% as prices rose, grocery store sales jumped 1.4%, and vehicles sales were up 1.5%. Core retail sales, excluding vehicles and gas stations, rose 0.9%. Target Tumbles As Profits Drop Target (TGT) shares are tumbling 15.1% ahead of the open after missing Q3 expectations and warning of a weak holiday quarter. Here’s how the retailer’s results compared to analysts’ expectations: EPS: $1.54 vs $2.13 expected Revenue: $26.52 billion vs $26.38 billion expected Profit was down about 50% year over year as the company cleared excess inventory. Inventory was up 14% compared to Q3 2021 vs 36% in Q2 and 43% in Q1. Target said it plans to cut up to $3 billion in total costs over the next three years. The company said it is planning for a weaker Q4, forecasting a low single-digit decline in comparable sales and operating margins around 3%. Lowe’s Beats Q3 Expectations Lowe’s (LOW) shares are up 1.5% in premarket trade after beating Q3 estimates. Here’s how the home improvement retailer’s results compared to analysts’ expectations: EPS: $3.27 vs $3.10 expected Revenue: $23.48 billion vs $23.13 billion expected Lowe’s reported 19% growth in its professional segment while online sales rose 12%. But the company did update its full-year guidance, lowering the top end of its revenue forecast to between $97 billion and $98 billion vs $99 billion previously. Lowe’s also expects comparable sales to be flat or down 1% vs the prior outlook for down 1% to up 1%. Homebuilder Sentiment Expected to Slide Further The National Association of Homebuilders releases its November sentiment index at 10:00 a.m. ET today. That index is expected to have fallen 2 points this month to 36. That extends a steep decline seen in recent months as mortgage rates have surged. Homebuilders have cited higher rates and continued labor and supply chain shortages for their decreased confidence.
Continue Reading -->Coffee With Greta: Inflation Party 2.0
DJIA Futures: +348 (+1%) SPX Futures: +73 (+1.8%) NASDAQ Futures: +331 (+2.8%) Good morning friends! Futures are rallying after another inflation report shows price pressures are cooling. Let’s get right to it! Wholesale Inflation Cools More Than Expected Wholesale inflation pressures cooled more than expected in October. The Bureau of Labor Statistics’ producer price index rose 0.2% monthly vs 0.4% expected. The PPI rose 8% annually vs expectations for an 8.4% increase. The Core PPI – which excludes food, energy, and trade services – rose 0.2% monthly and 5.4% year over year. PPI is considered a leading indicator for CPI as prices are passed down to consumers. This data is another sign the Fed’s rate hikes are working to cool inflation. CME Group’s FedWatch Tool shows 83% of traders expecting the bank to approve a 50bps rate hike in December. Walmart Beats Fiscal Q3 Estimates, Hikes Outlook Walmart (WMT) shares are up 7.7% ahead of the open after beating fiscal Q3 expectations and raising its outlook. Here’s how the retailer’s results compared to analysts’ expectations: Adjusted EPS: $1.50 vs $1.32 expected Revenue: $152.81 billion vs $147.75 billion expected Walmart’s CFO said consumers have shifted their spending to less-expensive options as “pocketbooks are stretched”. The company also made progress on clearing excess inventory during the quarter. Walmart’s inventory was up 13% year over year last quarter, down from 25% in Q2 and 32% in Q1. Comparable sales rose 8.2% year over year vs 3.6% expected while Sam’s Club comparable sales jumped 10% vs 8.7% expected. The company expects that growth to slow to 3% in Q4 vs analysts’ expectations for 3.5%. Walmart also forecast adjusted EPS will drop by 3% to 5% in Q4 due to the impact of currency fluctuations. Home Depot Slips Despite Earnings Beat Home Depot (HD) shares are slipping 0.8% in premarket trade despite topping Q3 expectations. Here’s how the home improvement retailer’s results compared to analysts’ expectations: EPS: $4.24 vs $4.12 expected Revenue: $38.87 billion vs $37.96 billion expected Revenue was up 6% year over year. Home Depot reiterated its full-year guidance, expecting EPS growth in the mid-single digits next quarter. The company said customer transactions fell about 4% but average ticket prices rose 9% as shoppers paid higher prices. Empire State Manufacturing Index Turns Positive The New York Fed’s factory gauge jumped more than expected this month. The Empire State Manufacturing Index rose 13.6 points to 4.5, the first positive reading since July. That beat economists’ expectations for a reading of -6. That jump came as the shipments index rose 8.3 points to 8. Unfilled orders also slipped 3.1% to -6.8, in a sign that metric is improving. Labor market conditions rose solidly and the price indices were flat. But manufacturers were more pessimistic about the next 6 months with the future business conditions index falling 4 points to -6.1. This index is considered a barometer for the broader U.S. manufacturing sector. Lucid Unveils Lower-Cost Car Lucid (LCID) shares are up 3.7% ahead of the open after the electric automaker unveiled new Air sedan models, including a new lower-cost option. The CEO told CNBC the new Lucid Air Pure will start at $87,400. An all-wheel-drive version with a 410-mile range is expected to ship by the end of this year with the rear-wheel-drive version arriving in 2023. Lucid also unveiled a new Air Touring model with all-wheel-drive, 620 horsepower, and a 425 mile range. That model will start at $107,400 with deliveries beginning shortly.
Continue Reading -->Coffee With Greta: Stocks Slip While Yields Pop
DJIA Futures: -31 (-0.1%) SPX Futures: -10 (-0.2%) NASDAQ Futures: -59 (-0.5%) Good morning friends! Futures are slipping as traders gear up for a busy week of earnings and economic data. Let’s get right to it! Yields Pop Higher Treasury yields are rising again today after the bond market was closed on Friday. The 2-year yield is up 9 basis points to 4.41% while the 10-year yield is up 4 basis points to 3.88%. Traders are looking ahead to the release of the New York Fed’s Survey of Consumer Expectations at 11:00 a.m. ET today. That survey includes consumers’ 1-year and 5-year expectations for inflation. Busy Week of Data Traders will get more insight into the inflation picture this week as well as some other key data on the housing market. The Bureau of Labor Statistics releases its October producer price index Tuesday morning while the New York Fed releases its November manufacturing index at the same time. Then the Commerce Department reports October retail sales Wednesday morning. The National Association of Homebuilders November sentiment index comes out later on Wednesday. The Census Bureau then reports October housing starts and building permits Thursday morning. And finally the National Association of Realtors reports October existing home sales on Friday. Key Retail Earnings Ahead The biggest retailers in the U.S. report Q3 earnings this week. Walmart (WMT) and Home Depot (HD) report ahead of the open on Tuesday. Then Target (TGT) and Lowe’s (LOW) report Wednesday morning. Macy’s (M) and Kohl’s (KSS) report Thursday morning with Gap (GPS) after the close. And then Foot Locker (FL) on Friday morning. Retail earnings have been key to gauge the impact of inflation on consumer activity. The market will be focused on future guidance from these retailers. Oil Prices Drop Amid China’s Covid Surge Oil prices are falling today on demand concerns as Covid cases surge in China. West Texas Intermediate crude futures are down 1.2% to under $88 bbl while Brent crude futures are down 1% to just under $95 bbl. Beijing and other big cities across China reported record new Covid infections today after easing restrictions last week. Tyson Tops Q4 Sales Expectations Tyson Foods (TSN) shares are up 1.7% ahead of the open after reporting stronger than expected Q4 sales. Here’s how the meat processor’s results compared to analysts’ expectations: Adjusted EPS: $1.63 vs $1.70 expected Revenue: $13.7 billion vs $13.5 billion expected The CEO said, “We delivered record sales and earnings for the full year, which was supported by our diverse portfolio and continued strength in consumer demand for protein.” Average prices rose 5.1% overall with chicken prices jumping 18.2% while beef prices fell 8.2%.
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