All posts by Greta Wall
Coffee With Greta: Private Job Growth Tumbles
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +86 (+0.3%) SPX Futures: +12 (+0.3%) NASDAQ Futures: +27 (+0.2%) Good morning friends! Futures are higher as traders are laser-focused on the Fed meeting following the release of fresh jobs data this morning. Let’s get right to it! Private Job Growth Slows Sharply Job growth in the U.S. private sector slowed in April as the labor market remains historically tight. Payroll firm ADP reported private employers added 247,000 workers last month. That missed economists’ expectations for 390,000 and was a sharp decline from 479,000 in March. The slowdown was mostly due to a drop off in hiring at small businesses. Companies with less than 50 employees lost 120,000 workers in April while those with 500 or more employees added 321,000. The leisure and hospitality sector continued to lead the gains, adding 77,000 jobs last month. This comes ahead of the official April jobs report from the Labor Department on Friday. That report is expected to show the U.S. economy added 400,000 workers last month with the unemployment rate slipping to 3.5%. ADP’s chief economist said, “In April, the labor market recovery showed signs of slowing as the economy approaches full employment. While hiring demand remains strong, labor supply shortages caused job gains to soften for both goods producers and services providers.” Fed Decision Day The Federal Open Market Committee releases its rate hike decision at 2:00 p.m. ET. The Fed is expected to vote in favor of a 0.5% rate hike today and begin the process of drawing down its balance sheet. The March minutes showed most officials support that runoff happening at a pace of $95 billion per month. But several Fed officials have since expressed support to be more aggressive and start selling off assets on the balance sheet. 57% of respondents to CNBC’s May Fed Survey said they believe the bank’s aggressive tightening action will lead to a recession. Moderna Reports Blowout Q1 Moderna (MRNA) shares are rallying 6.4% ahead of the open after crushing Q1 expectations. The pharmaceutical giant reported adjusted earnings of $8.58 per share on $6.07 billion in revenue. That smashes analysts’ expectations for adjusted EPS of $5.21 on $4.62 billion in revenue. Moderna sold $5.9 billion worth of its Covid vaccine in Q1, more than triple from $1.7 billion a year ago. The company maintained its full-year guidance for $21 billion in Covid vaccine sales. CVS Rises on Q1 Earnings Beat CVS (CVS) shares are up 1.6% in premarket trade after beating Q1 expectations. The pharmacy chain reported adjusted earnings of $2.22 per share on $76.83 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $2.15 on $75.39 billion in revenue. CVS saw declining demand for Covid related products during the quarter. The company administered more than 6 million Covid tests and 8 million vaccines in Q1. That’s down from 8 million tests and more than 20 million vaccines in Q4. Same-store sales rose 10.7% year-over-year, pharmacy same-store sales were up 10.1% and front store same-store sales rose 13.2%. CVS hiked its full-year guidance, forecasting earnings will range between $8.20 and $8.40 per share. Advanced Micro Devices Earnings Advanced Micro Devices (AMD) shares are jumping 6.7% ahead of the open after a Q1 earnings beat and strong outlook. The chipmaker reported adjusted earnings of $1.13 per share on $5.89 billion in revenue. That beat analysts’ expectations for adjusted EPS of $0.91 on revenue of $5.01 billion. It was the first time revenue has topped $5 billion as sales surged 71% compared to a year ago. Sales from the company’s computing and graphics segment jumped 33% year-over-year to $2.8 billion while data-center sales skyrocketed 88% to $2.5 billion. AMD forecast Q2 revenue between $6.3 billion and $6.7 billion and hiked its full-year forecast to $26.3 billion. That’s higher than analysts’ estimates for Q2 revenue of $5.14 billion and full-year revenue of $21.48 billion. Starbucks Reports Strong U.S. Sales Starbucks (SBUX) shares are 6.8% higher in premarket trade after reporting fiscal Q2 results after-hours on Tuesday. The coffee chain reported adjusted earnings of $0.59 per share on $7.64 billion. That was in line with analysts’ EPS expectations but beat estimates for $7.6 billion in revenue. The company suspended its full-year outlook as Covid lockdowns in China dent international sales. Starbucks’ same-store sales in the U.S. jumped 12% year-over-year, which helped offset a 23% drop in China. The company is making big investments in its workers to fend off a union push. Starbucks plans to spend $1 billion on higher wages, improved training, and store innovation in fiscal 2022. Employees who have been with the company between 2 to 5 years will get a 5% raise or be paid 5% above the market’s start rate, whichever is higher. Those with more than 5 years of tenure will get a 7% raise or be paid 10% above the market’s start rate. Those enhanced benefits will not be offered to workers at the stores that have voted to unionize. Starbucks is also adding more drive-through locations to boost its sales. Airbnb Revenue Surges as Travel Rebounds Airbnb (ABNB) shares are up 5.1% ahead of the open after reporting strong Q1 sales. The short-term rental company reported a loss of $0.03 per share on $1.51 billion in revenue. That was better than analysts’ expectations for a loss of $0.29 on $1.45 billion in revenue. Airbnb reported 102.1 million nights and experiences booked in the first quarter, topping pre-pandemic levels and crossing the 100 million mark for the first time ever. Revenue was up 70% compared to Q1 2021. Airbnb expects that strong growth to continue, forecasting Q2 revenue between $2.03 billion and $2.13 billion. That beat analysts’ estimates for $1.96 billion. Uber Drops on Q1 Loss Uber (UBER) shares are falling 3.4% in premarket trade after reporting an unexpected Q1 loss. The ride-share company reported
Continue Reading -->Coffee With Greta: Will the Fed Cause a Recession?
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +28 (+0.1%) SPX Futures: +5 (+0.1%) NASDAQ Futures: +30 (+0.2%) Good morning friends! Futures are flat after markets rebounded on the first trading day of May. Let’s get right to it! Recession Fears Loom as Fed Meeting Begins The Federal Reserve kicks off its two-day policy meeting today with the bank expected to enact a 0.5% rate hike on Wednesday. The bank now has to act aggressively to get inflation under control, after getting behind the curve on prices. One former Fed official thinks a recession is “almost inevitable”. Former Fed vice chair Roger Ferguson told CNBC Monday, “It’s a witch’s brew, and the probability of a recession I think is unfortunately very, very high because their tool is crude and all they can control is aggregate demand.” Treasury yields are rising ahead of the meeting. The 10-year Treasury yield is up 8 basis points to 2.97%, that yield briefly hit 3% for the first time since late 2018 on Monday. Pfizer Slashes Outlook Pfizer (PFE) shares are down 1.1% ahead of the open after cutting its full-year outlook. The pharmaceutical giant reported adjusted earnings of $1.62 per share on $25.66 billion in revenue. That topped analysts’ expectations for adjusted EPS of $1.47 on $23.86 billion in revenue. $13.2 billion of that revenue came from Covid vaccine sales. Pfizer sold $1.5 billion worth of its oral Covid treatment Paxlovid after it was authorized in December. The company reaffirmed its guidance for $32 billion in Covid vaccine sales and $22 billion in Paxlovid sales this year. But Pfizer cut its full-year earnings guidance to between $6.25 and $6.45 per share, down from the previous $6.35 to $6.55 per share. Overall, the company is expecting $98 billion to $102 billion in sales this year. BP Crushes Q1 Expectations BP (BP) shares are 5.1% higher in premarket trade after crushing Q1 expectations. The oil giant’s Q1 underlying replacement cost profit came in at $6.2 billion. That was the highest level in more than a decade and sharply beat expectations for $4.5 billion. But BP had a headline loss of $20.4 billion last quarter caused by pre-tax charges of $24 billion and $1.5 billion related to ditching its stake in Russian oil company Rosneft. BP announced $2.5 billion more in share buybacks for the year. Oil Continues to Slip Oil prices are falling further this morning after tumbling Monday on Chinese demand concerns. West Texas Intermediate crude futures are down 0.6% to under $105 bbl while Brent crude futures are down 0.6% to under $107 bbl. Beijing is reporting dozens of new Covid cases per day but has so far avoided a lockdown by mass-testing residents. But restaurants in the city have been closed for dining in and some apartment blocks have been sealed shut. The possible EU ban of Russian oil is preventing prices from falling further. The European Commission is expected to finalize work on its next sanctions package against Russia today. The American Petroleum Institute issues its inventory report today followed by the Energy Information Administration Wednesday. JOLTS Preview The Labor Department releases its Job Openings and Labor Turnover Survey (JOLTS) for March at 10:00 a.m. ET. That report is expected to show the number of job openings in the U.S. dipped to 11.2 million in March from 11.3 million in February. There has been a major shortage of available workers in the U.S. labor market in recent months. There were just 6 million unemployed workers in March. March Factory Orders The Census Bureau reports factory orders for March at 10:00 a.m. ET. Economists expect that report to show orders rose 1.0% compared to February. Orders declined unexpectedly in February following nine straight months of increases. In Case You Missed It The U.S. manufacturing sector expanded at the slowest pace in 18 months in April. The Institute for Supply Management’s Manufacturing PMI fell 1.7% to 55.4% last month. That sharply missed expectations for the index to rise to 57.8%. Respondents to the survey highlighted rising costs, labor shortages, and supply chain disruptions as their biggest struggles in April. U.S. construction spending rose less than expected in March. The Commerce Department reported construction spending rose 0.1% vs 0.5% in February. That missed economists’ expectations for a 0.8% increase. Spending on residential construction projects rose 1% while nonresidential construction spending fell 0.8%.
Continue Reading -->Coffee With Greta: All Eyes on the Fed
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +17 (+0.1%) SPX Futures: -7 (-0.2%) NASDAQ Futures: -37 (-0.3%) Good morning friends! Futures are mostly lower as traders gear up for the start of May trade with a big week of economic data on the plate. Let’s get right to it! Eyes on the Fed Traders are focused on Wednesday with the Fed decision scheduled for 2:00 p.m. ET. CME Group’s FedWatch Tool shows traders see a 99.8% chance the bank will enact its first 0.5% rate hike. The Fed meeting kicks off Tuesday and comes after the Core PCE Price Index, which is the bank’s favorite inflation gauge, jumped 5.2% year-over-year in March. The market expects the Fed to get more aggressive on inflation moving forward, with 91.3% predicting a 0.75% rate hike in June. Big Week of Economic Data On top of the Fed meeting, traders will get a flood of key economic data this week. It begins with both the S&P Global and ISM Manufacturing PMI surveys for April at 10:00 a.m. ET today. The Commerce Department also releases its March construction spending report at 10:00 a.m. Tuesday morning, the Labor Department releases its March Job Openings and Labor Turnover Survey (JOLTS) and the Commerce Department reports March factory orders. Wednesday morning payroll firm ADP releases its April private jobs report and the Commerce Department releases the March trade deficit. The S&P Global and ISM Services PMI surveys will also be released Wednesday. On Thursday the Labor Department reports weekly jobless claims as well as Q1 productivity and unit labor costs. And finally, the official April jobs report will be released Friday. The week also includes more Q1 earnings reports with 150 S&P 500 companies scheduled to report. Oil Prices Slip on China Growth Concerns Oil prices are down today amid new concerns about weak economic growth in China. West Texas Intermediate crude futures are down 3.9% to $100.50 bbl while Brent crude futures are down 3.6% to $103.30 bbl. The drop comes after China released new data over the weekend taht showed its factory activity contracted in April. That was the second straight monthly contraction and was the lowest level of activity since February 2020. The EU is still considering a ban of Russian oil imports by the end of the year. The European Commission held talks with EU member states about that proposal over the weekend. Berkshire Hathaway Holds Annual Shareholders Meeting Berkshire Hathaway (BRK.A) held its first in-person annual shareholder’s meeting since 2019 on Saturday. Berkshire Chairman Warren Buffett bemoaned the stock market as a “gambling parlor” during his speech at the meeting. Buffett said, “Wall Street makes money, one way or another, catching the crumbs that fall off the table of capitalism.” Vice-chairman Charlie Munger said, “We have people who know nothing about stocks being advised by stockbrokers who know even less”. Munger said the market is “almost a mania of speculation”. The two also railed against cryptocurrencies, specifically Bitcoin, with Buffett saying it “doesn’t produce anything”. “Assets, to have value, have to deliver something to somebody,” said Buffett. “And there’s only one currency that’s accepted. You can come up with all kinds of things. We can put up Berkshire coins, put up Berkshire money but in the end, this is money,” as he held up a $20 bill. Munger discouraged Americans from investing their retirement money into Bitcoin. “When you have your own retirement account, and your friendly adviser suggests you put all the money into bitcoin, just say no,” he said. Berkshire Increases Stake in Activision Blizzard Activision Blizzard (ATVI) shares are up 1.8% ahead of the open after Warren Buffett announced Berkshire increased its stake in the company. Berkshire now owns about 9.5% of Activision shares as part of a merger arbitrage play. The investment is a bet that Microsoft’s (MSFT) planned acquisition of Activision will go through. Microsoft plans to buy the video game company for $95 per share. Berkshire has been buying more shares as the stock trades below that price. “If the deal goes through, we make some money,” said Buffett. In Case You Missed It The Nasdaq logged its worst month since October 2008 in April and hit a fresh 2022 low at the close on Friday. The tech-heavy index tumbled 13.26% last month. The Dow finished April 4.9% lower while the S&P 500 tumbled 8.8%. The S&P is down 13.3% YTD, marking the worst start to a year since 1939. The Nasdaq is deep in bear market territory, down more than 22% from its most recent record.
Continue Reading -->Coffee With Greta: Is Apple Rotten?
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -135 (-0.4%) SPX Futures: -39 (-0.9%) NASDAQ Futures: -165 (-1.2%) Good morning friends! Futures are lower following a string of earnings disappointments and the release of hot inflation data. Let’s get right to it! Apple Beats Expectations, Dips On Supply Chain Warnings Apple (AAPL) shares are slipping 1.6% ahead of the open after topping fiscal Q2 expectations but warning about supply chain issues. The tech giant reported earnings of $1.52 per share on $97.28 billion in revenue. That was better than analysts’ expectations for EPS of $1.43 on $93.89 billion in revenue. iPhone revenue rose 5.5% annually to $50.57 billion. Apple did not provide Q2 guidance. The board of directors authorized $90 billion in share buybacks and the company raised its cash dividend by 5% to $0.23 per share. CEO Tim Cook said on the earnings call Apple is “not immune” to supply chain challenges. Executives expect those issues will dent sales by $4 billion to $8 billion. Amazon Tumbles On Surprise Loss, Weak Outlook Amazon (AMZN) shares are plunging 10.1% in premarket trade after reporting a surprise Q1 loss and forecasting a weaker-than-expected Q2. The online retail giant reported a loss of $7.56 per share. That included a $7.6 billion loss from Amazon’s investment in electric truck maker Rivian (RIVN) as the stock plunged more than 50% in Q1. Revenue rose 7% year-over-year to $116.4 billion. That was in-line with analysts’ expectations but marked the slowest growth in 20 years. Amazon Web Services brought in $18.44 billion in revenue vs $18.27 billion expected. Ad revenue rose 25% to $7.88 billion but that was lower than analysts’ estimates for $8.17 billion. Amazon forecast Q2 revenue between $116 billion to $121 billion. Wall Street was expecting guidance for $125.5 billion in revenue. Intel Slips On Disappointing Guidance Intel (INTC) shares are down 4.4% ahead of the open on disappointing guidance despite beating Q1 expectations. The chipmaker reported adjusted earnings of $0.87 per share on $18.35 billion in revenue. That topped analysts’ expectations for adjusted EPS of $0.81 on $18.31 billion in revenue. Sales at Intel’s client computing division, which includes PC chips, fell 13% to $9.29 billion vs $9.42 billion expected. Revenue in the company’s data-center category rose 22% to $6 billion vs expectations for $6.78 billion. The company forecast adjusted Q2 EPS of $0.70 and $18 billion in revenue. That missed analysts’ estimates for adjusted EPS of $0.83 on $18.38 billion in revenue. Roku Pops On User Increase Roku (ROKU) shares are up 4% in premarket trade after beating Q1 revenue expectations. The digital media company reported a loss of $0.19 per share on $734 million in revenue. That loss was in-line with analysts’ expectations but revenue beat expectations for $718 million. Roku added 1.1 million active accounts last quarter, bringing the total to 61.3 million. That was just shy of analysts’ expectations for 61.8 million. The CEO said, “We have delivered solid performance in a challenging operating environment and expect that we will continue to navigate through macro headwinds, including inflationary pressures, geopolitical conflict, and supply chaindisruptions”. Roku forecast Q2 revenue will come in at $805 million vs expectations for $816 million. Robinhood Dragged Down by Weak Q1 Results Robinhood (HOOD) shares are tumbling 11.3% ahead of the open after reporting a steeper than expected first-quarter loss. The stock trading platform reported a loss of $0.45 per share on $299 million in revenue. That was worse than analysts’ expectations for a loss of $0.36 per share on $355.8 million in revenue. Robinhood’s monthly active users fell for the second straight quarter. The company had 15.9 million MAUs in Q1 vs 17.3 million in Q4. Average revenue per user tumbled to $53 vs $137 a year ago. This comes after CEO Vlad Tenev announced Robinhood is firing 9% of its full-time employees earlier this week. The stock is trading far below its IPO price of $38 per share. Exxon Mobil Profits Hit By Russia Charge Exxon Mobil (XOM) shares are down 1.2% in premarket trade after missing Q1 expectations. The oil company reported adjusted earnings of $2.07 per share on $90.5 billion in revenue. That missed analysts’ expectations for adjusted EPS of $2.23 as the quarter included a $3.4 billion charge related to its Sakhalin-1 operation in Russia. But revenue beat expectations for $82.8 billion. Chevron Profit Quadruples Chevron (CVX) shares are down 1.2% ahead of the open despite reporting huge Q1 profits. The oil giant reported adjusted earnings of $3.36 per share $54.37 billion in revenue. The $6.3 billion in profit was more than quadruple $1.37 billion in Q1 2021 and revenue jumped from $32.03 billion. Wall Street had forecast adjusted EPS of $3.27 on $47.94 billion in revenue. Musk Sells $4 Billion in Tesla Stock After Twitter Deal A new SEC filing shows Tesla (TSLA) CEO Elon Musk sold nearly $4 billion worth of the electric automaker’s stock this week. The bulk of those sales were made on Tuesday, the day after Twitter (TWTR) accepted Musk’s $44 billion takeover offer. Tesla shares tumbled 12% on Tuesday. In a tweet Thursday, Musk said “No further TSLA sales planned after today”. Tesla shares are 2.2% higher in premarket trade. PCE Inflation Hits 40-Year High The Bureau of Labor Statistics’ Personal Consumption Expenditures index shows prices continued to soar in March. The headline PCE Price Index surged 0.9% monthly and jumped 6.6% annually. That was the fastest annual price gain since January 1982 and up from 6.4% in February. But core inflation pressures cooled in March. The Core PCE Price Index, which is the Fed’s preferred inflation measure and excludes food and energy prices, rose 0.3% monthly and 5.2% annually. That was in-line with expectations on a monthly basis and a cooldown from 5.3% annual inflation in February. Economists are hoping the slowing core reading means inflation may have peaked in
Continue Reading -->Coffee With Greta: Twitter, Meta Pop on Earnings
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +234 (+0.7%) SPX Futures: +54 (+1.3%) NASDAQ Futures: +239 (+1.8%) Good morning friends! Futures are higher on another big day of earnings. Let’s get right to it! Twitter Tops Q1 User Expectations Twitter (TWTR) shares are up 1.1% in premarket trade after reporting better-than-expected user growth in Q1. The social media giant reported net income of $513 million in the quarter, or $0.61 per share. That figure was not comparable to analysts’ expectations as it includes a gain from Twitter’s sale of MoPub. Twitter’s $1.2 billion in revenue was shy of analysts’ estimates for $1.23 billion. But the company had 229 million monetizable daily active users (mDAUs) last quarter, better than 226.9 million expected by analysts. U.S. mDAUs jumped 6.4% year-over-year while international mDAUs surged 18.1%. The positive report came as a surprise to many analysts who had been speculating Twitter accepted Musk’s buyout deal earlier this week in anticipation of bad earnings. The company declined to provide guidance citing that deal. Meta Surges On Q1 Earnings Beat Meta Platforms (FB) shares are rallying 14.2% ahead of the open after beating Q1 expectations. The Facebook parent company reported adjusted earnings of $2.72 per share on $27.91 billion in revenue. That topped analysts’ expectations for adjusted EPS of $2.56 but was shy of estimates for $28.2 billion in revenue. Revenue rose 7% year-over-year, marking the first time in company history that metric has been in single digits. Daily active users rose more than expected, after declining for the first time in Q4. Facebook had 1.96 billion DAUs in Q1, up 3 million from Q4 and better than 1.95 billion expected. Monthly active users came in shy at 2.94 billion vs 2.97 billion expected. The company continued to ramp up spending on the metaverse with its Reality Labs segment losing $2.96 billion in Q1, up more than 61% year-over-year. Meta forecast Q2 revenue between $28 billion and $30 billion in Q2, falling short of Wall Street’s expectations for $30.6 billion. The company lowered its total expenses guidance for 2022 to between $87 billion and $92 billion. Ford Tops Q1 Expectations Ford (F) shares are up 1.5% in premarket trade after reporting a strong first quarter. The automaker reported adjusted earnings of $0.38 per share on $32.1 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $0.37 on $31.13 billion in revenue. The adjusted results excluded the $5.4 billion loss caused by Ford’s 12% stake in electric truck maker Rivian (RIVN). Ford reiterated its guidance for full-year pretax adjusted earnings between $11.5 billion and $12.5 billion. Analysts had been expecting a downgrade due to inflation and continued supply chain issues. The CFO said he expects Ford’s wholesale volumes to increase by 10% to 15% this year compared to 2021. PayPal Cuts Outlook PayPal (PYPL) shares are 2.6% higher ahead of the open despite the company cutting its earnings outlook. PayPal reported adjusted Q1 earnings of $0.88 per share on $6.5 billion in revenue. That was in-line with analysts’ expectations. The fintech giant had 429 million active accounts last quarter, up from 426 million in Q4 and better than analysts’ estimates for 428.4 million. PayPal forecast adjusted Q2 earnings of $0.86 per share and $6.8 billion in revenue. That missed Wall Street’s outlook for adjusted EPS of $1.21 and revenue of $7.1 billion. The company also cut its full-year outlook, forecasting revenue growth between 11% and 13% this year and adjusted EPS between $3.81 and $3.93. Pinterest Rallies On Earnings Beat, User Growth Pinterest (PINS) shares are rising 7.7% in premarket trade after reporting strong Q1 user numbers. The social media company reported adjusted earnings of $0.10 per share on $575 million in revenue. That beat analysts’ expectations for adjusted EPS of $0.04 on $573 million in revenue. Revenue rose 18% year-over-year. Pinterest had 433 million monthly active users last quarter, up from 431 million in Q4. That was shy of analysts’ expectations for 437.0 million but was the first increase in a year. Pinterest forecast its Q2 revenue will rise 11% year-over-year to $680 million. That missed Wall Street’s expectations for $693 million. Qualcomm Crushes Fiscal Q2 Expectations Qualcomm (QCOM) shares are up 6.2% ahead of the open after crushing fiscal Q2 expectations. The chipmaker reported adjusted earnings of $3.21 per share on $11.16 billion in revenue. That was sharply higher than analysts’ expectations for adjusted EPS of $2.91 on $10.6 billion in revenue. Profits surged 69% year-over-year while revenue jumped 41%. Qualcomm reported $9.55 billion in chip sales last quarter, up 52% year-over-year and better than $8.86 billion analysts were expecting. Its technology licensing sales fell 2% annually to $1.58 billion but still topped estimates for $1.55 billion. Qualcomm forecast fiscal Q3 earnings between $2.75 and $2.95 per share on $01.9 billion in revenue. That was stronger than expected guidance for $9.98 billion in sales. Southwest Airlines Jumps On Revenue Beat Southwest Airlines (LUV) shares are 3.4% higher in premarket trade after beating Q1 revenue expectations. The airline reported an adjusted loss of $0.32 per share vs analysts’ expectations for a $0.30 loss. Southwest’s $4.69 billion in revenue was higher than estimates for $4.67 billion. March was the first month that operating revenue was higher than 2019 levels since the pandemic began. Southwest expects to be profitable for the full-year and forecast Q2 revenue growth of 8% to 12% compared to 2019. Teladoc Craters After Sharp Q1 Loss Teladoc (TDOC) shares are plummeting 44.1% in premarket trade after slashing its outlook. The telemedicine company reported a loss of $41.58 per share, which included a $6.6 billion impairment charge related to goodwill. Teladoc’s revenue of $565.4 million missed analysts’ expectations for $569 million. The company forecast Q2 adjusted ebitda of $39 million to $49 million on $580 million to $600 million in revenue. That missed analysts’ estimates for adjusted ebitda of
Continue Reading -->Coffee With Greta: Traders Face the Earnings Flood
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +220 (+0.7%) SPX Futures: +14 (+0.3%) NASDAQ Futures: +25 (+0.2%) Good morning friends! Futures are rebounding as traders digest a flood of big Q1 earnings. Let’s get right to it! Alphabet Tumbles on Earnings Miss Alphabet (GOOGL) shares are falling 4.3% ahead of the open after missing Q1 profit and revenue expectations. The Google parent company reported earnings of $24.62 per share on $68.01 billion in revenue. That missed analysts’ expectations for EPS of $25.91 on $68.11 billion in revenue. Overall revenue rose 23% year-over-year, down from 34% growth in Q1 2021. YouTube advertising revenue came in short of analysts’ expectations at $6.87 billion while Google cloud revenue beat estimates at $5.82 billion. Traffic acquisition costs were higher than expected at $11.99 billion. Alphabet’s board authorized $70 billion in share buybacks for 2022. Microsoft Tops Fiscal Q3 Expectations Microsoft (MSFT) shares are up 3.8% in premarket trade after beating fiscal Q3 expectations across the board. The tech giant reported adjusted earnings of $2.22 per share on $49.36 billion in revenue. That topped analysts’ expectations for adjusted EPS of $2.19 on $49.05 billion in revenue. Revenue rose 18% year-over-year, down from 20% in the previous quarter. Sales and marketing costs rose 10% year-over-year to $5.6 billion. Microsoft benefited from higher prices on some of its Office 365 productivity software subscriptions in the quarter. General Motors Q1 Sales Fall Short General Motors (GM) shares are up 1.5% ahead of the open after mixed Q1 results. The automaker reported adjusted earnings of $2.09 per share versus analysts’ expectations for $1.68. But GM’s $35.98 billion in revenue was short of expectations for $37.01 billion The company hiked its full-year net income forecast to between $9.6 billion and $11.2 billion. GM also raised its full-year adjusted earnings outlook to between $6.50 and $7.50 per share, as it increased its ownership stake in its Cruise autonomous vehicle unit. The automaker still plans to produce 25% to 30% more vehicles this year compared to 2021. Chipotle Benefits From Price Hikes Chipotle Mexican Grill (CMG) shares are up 4.6%in premarket trade after beating Q1 expectations. The restaurant chain reported adjusted earnings of $5.70 per share on $2.02 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $5.64 on $2.01 billion in revenue. Same-store sales rose 9% year-over-year versus Wall Street’s expectations for 7.9%. Chipotle said higher menu prices helped offset rising costs for beef, avocados, paper, and labor last quarter. The company did not provide full-year guidance but said it expects same-store sales growth between 10% and 12% in Q2. Boeing Falls on Weak Q1 Boeing (BA) shares are down 3.8% ahead of the open after reporting a steeper than expected Q1 loss. The plane maker reported a core loss of $2.75 per share on $13.99 billion in revenue. That was worse than analysts’ expectations for a core loss of $0.27 per share on $16.02 billion in revenue. Revenue was down 8% compared to Q1 2021. Boeing struggled with production delays during the quarter. The company announced it is pausing production of its 777X plane through 2023 which will create $1.5 billion in abnormal costs starting this quarter. Boeing is ramping up its 737 Max output to 31 planes a month in Q2 after delivering 95 in total in Q1. Spotify Drops Despite Strong Subscriber Growth Spotify (SPOT) shares are down 6.4% in premarket trade despite reporting strong subscriber growth in Q1. The streaming giant reported earnings of €0.21 on €2.66 billion in revenue. Analysts were expecting a loss of €0.23 per share on €2.8 billion in revenue. Monthly active users jumped 19% year-over-year to 422 million, topping its own expectations by about 1 million. Spotify said that number included 3 million users who were logged out during a service outage and created new accounts. Premium subscribers rose 15% to 182 million. The company forecast 428 million monthly active users in Q1 and 187 million premium subscribers. That forecast includes an expectation to lose 600,000 more subscribers once it fully shuts down its business in Russia. Robinhood Fires 9% of Workforce Robinhood (HOOD) shares are down 4.5% ahead of the open after announcing it will fire 9% of its full-time employees. CEO Vlad Tenev made that announcement in a blog post Tuesday evening. Tenev said the company’s rapid expansion over the past two years led to “some duplicate roles and job functions”. Robinhood is scheduled to report Q1 earnings after-hours tomorrow. Lucid Rallies on Saudi Deal Lucid Group (LCID) shares are up 4.3%in premarket trade after announcing a sales deal with Saudi Arabia. The electric automaker reached an agreement to sell up to 100,000 vehicles over a 10-year period to the Saudi Arabian government. The deal includes an initial commitment for 50,000 Lucid Air vehicles. Lucid’s CEO called it “another pivotal moment in our acceleration of sustainable transportation worldwide”. Tesla Tumbles After Twitter Accepts Musk Buyout Tesla (TSLA) shares fell 12.2% Tuesday after Twitter (TWTR) accepted CEO Elon Musk’s $44 billion offer to buy the social media company. That drop wipe $126 billion off the electric automaker’s market cap. Part of the funding for that buyout includes a $12.5 billion margin loan against Musk’s Tesla stock. Although Musk is the richest person in the world, much of his wealth is tied up in TSLA. Musk will now be in charge of Tesla, Twitter, SpaceX, the Boring Company, and Neuralink. He’s made it clear he wants to heavily influence the day to day operations at Twitter. Tesla is also still struggling to resume production at its factory in Shanghai, China. TSLA shares are up 0.6% ahead of the open. Pending Home Sales Preview The National Association of Realtors reports pending home sales for March at 10:00 a.m. ET. Economists are expecting that report to show a 1.8% decline in the number of contracts signed to
Continue Reading -->Coffee With Greta: Twitter Talks With Musk
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -218 (-0.7%) SPX Futures: -30 (-0.7%) NASDAQ Futures: -81 (-0.6%) Good morning friends! Futures are lower as traders gear up for a huge week of earnings. Let’s get right to it! Twitter Talks With Musk Twitter (TWTR) shares are up 4.7% ahead of the open following reports the social media giant could reach a buyout deal with Elon Musk as early as today. The board of directors reportedly met Sunday to discuss Musk’s $46.5 billion tender offer. The New York Times reported those talks with Musk continued into the early hours of today. Twitter has declined to comment on the reports. Coca-Cola Tops Q1 Expectations Coca-Cola (KO) shares are up 1.8% in premarket trade after beating Q1 expectations. The beverage maker reported adjusted earnings of $0.64 on $10.5 billion in revenue. That topped analysts’ expectations for adjusted EPS of $0.58 on $9.83 billion in revenue. Revenue was up 16% year-over-year. Coke said halting its business in Russia will dent revenue and operating income by 1% to 2% this year. The company reiterated its full-year outlook for revenue growth between 7% to 8% and comparable EPS growth between 5% to 6%. Activision Blizzard Falls Short in Q1 Activision Blizzard (ATVI) shares are slipping 0.4% ahead of the open after missing Q1 expectations. The video game company reported adjusted earnings of $0.64 per share on $1.77 billion in revenue. That was lower than analysts’ estimates for adjusted EPS of $0.71 on $1.82 billion in revenue. Activision blamed the miss on lower demand for its “Call of Duty” game franchise as gamers return to pre-pandemic habits. The company did not provide guidance as Microsoft’s (MSFT) acquisition is pending. That $69 billion deal is expected to close by June 30, 2023. It’s been approved by both company boards but is still awaiting regulatory approval. Oil Prices Tumble on Demand Fears Oil prices are falling today as Covid lockdowns continue in Shanghai, China. West Texas Intermediate crude futures are down 4.8% to $97 bbl while Brent crude futures are falling 4.8% to $101 bbl. Authorities in Shanghai put up fences around residential buildings as the recent Covid outbreak continues. A few cases have also been identified in Beijing, prompting fears of an impending lockdown in that city. China’s zero-Covid policy threatens demand levels for oil as China is the largest crude importer in the world. Treasury Yields Slump on Global Growth Fears U.S. Treasury yields are also falling on concerns surrounding those Covid measures in China. The 10-year Treasury yield is down 10 basis points to 2.82%, the 2-year yield is down 10 basis points to 2.6%, and the 30-year yield is down 5 basis poits to 2.89%. Yields spiked last week in anticipation of aggressive action from the Fed to tackle inflation. But the Covid outbreaks in China are now prompting fears of a slowdown in global economic growth this year. Big Earnings Reports Ahead The market is preparing for a rush of huge Q1 earnings reports this week. Here are the highlights: Tuesday AM: Pepsico (PEP), UPS (UPS), General Electric (GE), and JetBlue (JBLU) Tuesday PM: Microsoft (MSFT), Alphabet (GOOG, GOOGL), and General Motors (GM) Wednesday AM: Boeing (BA) and Spotify (SPOT) Wednesday PM: Meta Platforms (FB), Paypal (PYPL), Qualcomm (QCOM), Ford (F), Teladoc (TDOC), and Pinterest (PINS) Thursday AM: Twitter (TWTR), Caterpillar (CAT) and Southwest Airlines (LUV) Thursday PM: Apple (AAPL), Amazon (AMZN), Intel (INTC), Roku (ROKU), and Robinhood (HOOD) Friday AM: Exxon Mobil (XOM) and Chevron (CVX) In Case You Missed It Bed Bath & Beyond (BBBY) shares popped after-hours on Friday after a report on buyer interest for its Buybuy Baby Unit. The Wall Street Journal reported the interested parties are private-equity firm Cerberus Capital Management LP and Tailwind Acquisition Corp. Bed Bath & Beyond has been facing pressure to sell off the baby retailer and take the rest of its business private. BBBY shares are down 4.7% ahead of the open.
Continue Reading -->Coffee With Greta: Powell Spooks the Bond Market
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -104 (-0.3%) SPX Futures: -8 (-0.2%) NASDAQ Futures: +7 (+0.1%) Good morning friends! Futures are mixed as yields spike following a hawkish speech from the Fed Chair. Let’s get right to it! Short-Term Yields Spike Short-term Treasury yields are rallying after hawkish comments from the Fed Chair on Thursday. The 1-year Treasury yield is up 18 basis points to 2.07% while the 2-year yield is up 16 basis points to 2.74%. And the curve between the 5-year and 30-year yields is inverted. The 5-year yield is at 2.97% with the 30-year yield at 2.91%. Powell Spooks Traders Fed Chair Jerome Powell spooked Wall Street Thursday as he officially put his support behind larger rate hikes. Speaking at an IMF panel, Powell said he thinks “there is something to be said for front-end loading any accommodation one thinks is appropriate. … I would say 50 basis points will be on the table for the May meeting.” Several other officials, including St Louis Fed President James Bullard, have previously called for “front-loading” rate hikes to tackle inflation this year. The Fed Chair said, “It’s absolutely essential to restore price stability. Economies don’t work without price stability.” He also said inflation may have peaked in March but the bank is “not going to count on it”. CME Group’s FedWatch Tool shows 99.8% of traders expect a 0.5% rate hike in May. The market expects the federal funds rate to be at 2.75% by year-end. The Fed meets again May 3-4. Snap Misses Q1 Expectations Snap (SNAP) shares are up 1% ahead of the open after reporting a “challenging” Q1. The Snapchat parent company reported a loss of $0.02 per share vs analysts’ expectations for earnings of $0.01 per share. The company’s $1.06 billion in revenue was shy of the $1.07 billion Wall Street was looking for. But Snap reported strong user numbers. Global Daily Active Users rose 18% year-over-year to 332 million vs 330 million expected. Average revenue per user jumped 16.8% year-over-year to $3.20. Snap forecast Q2 revenue growth between 20% and 25%, lower than analysts’ expectations for 28%. The company expects to have 344 million users by the end of June. Kimberly-Clark Earnings Kimberly-Clark (KMB) shares are rallying 5.5% in premarket trade after beating Q1 expectations. The consumer products company reported adjusted earnings of $1.35 per share on $5.095 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $1.24 on $4.916 billion in revenue. Kimberly-Clark hiked its full-year guidance. The company now expects sales to rise 3% to 4% in 2022 vs the previous forecast for 1$% to 2% growth. Kimberly-Clark reiterated its adjusted EPS guidance at $5.60 to $6.00. Old Navy CEO is Out as Gap Slashes Outlook Gap Inc (GPS) shares are tumbling 15.9% ahead of the open after the company slashed its fiscal Q1 2022 forecast. Gap also announced the CEO of its Old Navy division, Nancy Green, will step down this week. The company now expects its revenue loss will be in the low to mid-teens vs previous guidance for a loss in the mid to high-single digits. Gap cited “macro-economic dynamics as well as the execution challenges at the Old Navy brand” as reasons for that downgrade. The retailer will report earnings on May 26 and said it will provide updated full-year guidance then. Oil Prices Fall Oil prices are falling today as growth concerns outweigh supply worries. West Texas Intermediate crude futures are down 1.3% to $102.43 bbl while Brent crude futures are down 1.3% to $106.94 bbl. The drop comes as China’s largest city, Shanghai, is slowly emerging out of a Covid lockdown. The city announced a new round of mitigation measures today including daily testing. The European Union is still considering a ban of Russian oil but has not made a decision. In Case You Missed It Weekly jobless claims fell less than expected last week. The Labor Department reported Thursday, 184,000 Americans filed initial claims last week vs expectations for 180,000. Continuing claims fell by 58,000 to 1.417 million in the week ending April 9. A new SEC filing shows Tesla (TSLA) CEO Elon Musk has secured $46.5 billion to finance a tender offer for Twitter (TWTR). That funding includes $21 billion of his own money and $25.5 billion in debt financing from Morgan Stanley Senior Funding. The tender offer comes as Twitter’s board has not responded to Musk’s original $43 billion cash offer. Freddie Mac’s average 30-year fixed mortgage rate jumped to 5.11% over the past week. It’s the first time that rate has been above 5% since 2011. The 30-year rate was 2.97% at the same time a year ago. The 15-year fixed-rate rose to 4.38% from 4.17% a week ago and 2.29% a year ago.
Continue Reading -->Coffee With Greta: Tesla Crushes Q1 Expectations
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +237 (+0.7%) SPX Futures: +38 (+0.9%) NASDAQ Futures: +168 (+1.2%) Good morning friends! Futures are higher as traders digest the latest round of Q1 earnings. Let’s get right to it! Tesla Crushes Q1 Expectations Tesla (TSLA) shares are rallying 8.7% ahead of the open after the electric automaker crushed Q1 expectations. The company reported earnings of $3.22 per share on $18.76 billion in revenue. That beat analysts’ expectations for EPS of $2.26 on $17.80 billion in revenue. Revenue surged 81% year-over-year as Tesla delivered a record-high 310,000 vehicles last quarter. The company’s automotive margins jumped to a record 32.9% in Q1. Tesla did not give detailed 2022 guidance but said it expects annual growth of 50% on a multi-year basis. The company did warn supply constraints are expected to continue through the end of this year. United Airlines Forecasts Profit in 2022 United Airlines (UAL) shares are up 8.3% in premarket trade after the airline forecast a return to profitability this year. United’s Q1 performance was weaker than expected. The company reported an adjusted loss of $4.24 per share vs analysts’ expectations for $4.22. $7.57 billion in revenue was shy of analysts’ estimates for $7.68 billion. Fuel costs jumped to $2.88 per gallon in the first quarter, up from $1.74 in 2021 and $2.05 in 2019. United forecast its costs excluding fuel will rise 16% in Q2 compared to 2019. The airline expects to fly 87% of its 2019 schedule this quarter. American Airlines Expects Q2 Profit American Airlines (AAL) shares are surging 10% ahead of the open after beating Q1 expectations and forecasting a return to profit soon. The airline reported an adjusted loss of $2.32 per share on $8.9 billion in revenue. That was better than analysts’ estimates for a loss of $2.40 on $8.826 billion in revenue. American said its revenue March surpassed 2019 levels for the first time since the pandemic began. The company forecast Q2 revenue up to 8% higher than three years ago and said it expects to fly 94% of its 2019 schedule this quarter. Carvana Drops on Steep Q1 Loss Carvana (CVNA) shares are tumbling 4.1% in premarket trade after reporting a steeper-than-expected Q1 loss. The used-car retailer reported a loss of $2.89 per share and $2.25 billion in revenue. Analysts were expecting a per-share loss of $1.44 and $3.4 billion in revenue. In its letter to shareholders, Carvana said that loss was caused by higher volume than was needed last quarter. The company also cited the spread of the omicron variant and used-car prices as factors that hurt its performance and said it had issues with “reconditioning and logistics network disruptions”. Carvana declined to provide Q2 or full-year guidance. Labor Market Remains Tight The latest weekly jobless claims report shows the labor market remaining tight. The Labor Department reported 184,000 Americans filed initial claims for unemployment benefits last week. That was down 1,000 from the previous week and above economists’ expectations for 180,000. Continuing claims fell by 58,000 to 1.417 million vs expectations for 1.459 million. The U.S. labor market is nearing full employment levels as businesses struggle to find qualified workers. Oil Prices Up Oil prices are higher today as supply concerns remain. West Texas Intermediate crude futures are up more than 1% to over $103 bbl while Brent crude futures are up 1.3% to over $108 bbl. The International Energy Agency reported U.S. crude inventory tumbled by 8 million barrels in the week ending April 15. That sharply missed expectations for an increase of 2.5 million barrels. U.S. oil exports hit the highest level since March 2020 and imports fell to the lowest level since April 2021. Libya is losing more than 550,000 barrels per day due to production shutdowns at some of its major oil facilities. Analysts expect the oil market to remain volatile as the EU is still considering a ban on Russian oil. Fed Beige Book The Federal Reserve’s April Beige Book shows the U.S. economy expanded at a “moderate” pace between March and early April. That report was released Wednesday. Although that growth was an upgrade from the “modest to moderate” pace in the February Beige Book, the Fed cited uncertainty about the future due to high inflation and the war in Ukraine. The bank said, “Outlooks for future growth were clouded by the uncertainty created by recent geopolitical developments and rising prices”. The Beige Book also said the shortage of workers in the labor market remains the biggest obstacle to hiring. Fed Chair Jerome Powell is set to address the International Monetary Fund in a speech about the global economy at 1:00 p.m. ET today. Netflix’s Worst Day In 17 Years Netflix (NFLX) shares cratered 35.1% on Wednesday, marking the streaming giant’s largest one-day decline since October 15, 2004. That plunge wiped more than $50 billion off the company’s market cap. Netflix reported a surprise net loss of 200,000 subscribers in Q1 and forecast a loss of 2 million subscribers in Q2. The company blamed its “revenue growth headwinds” on password sharing and increased competition. Netflix estimates more than 100 million global households are sharing passwords. The company warned a crackdown on that practice is in the works. NFLX shares are down 3.2% ahead of the open. In Case You Missed It The National Association of Realtors reported existing home sales fell 2.7% in March to a SAAR of 5.77 million units. The median price of an existing home sold last month hit a new record-high at $375,300. There were 950,000 homes for sale at the end of March, representing a 2-month supply.
Continue Reading -->Coffee With Greta: Netflix Is Bleeding
Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: +142 (+0.4%) SPX Futures: +19 (+0.4%) NASDAQ Futures: +60 (+0.4%) Good morning friends! Futures are higher as traders shake off Netflix’s bleak Q1 earnings report. Let’s get right to it! Netflix Plunges on Subscriber Loss Netflix (NFLX) shares are plummeting 27.5% ahead of the open after the streaming giant reported its first subscriber loss in more than 10 years. The company reported earnings of $3.53 per share vs $2.89 expected. Revenue of $7.78 billion missed analysts’ estimates of $7.93 billion. Netflix lost 200,000 subscribers last quarter, sharply missing its own forecast for a gain of 2.5 million and analysts’ expectations for growth of 2.73 million. The company said shutting down its service in Russia resulted in the loss of 700,000 subscribers. Netflix forecast a sharper contraction in Q2, expecting to lose 2 million more this quarter. It blamed “revenue growth headwinds” on password sharing among its subscribers and increased competition from other services. IBM Rallies on Strong Q1 Earnings, Outlook International Business Machines (IBM) shares are 2.4% higher in premarket trade after beating Q1 expectations. The tech giant reported earnings of $1.40 per share on $14.2 billion in revenue. That was better than analysts’ expectations for EPS of $1.38 on $13.85 billion in revenue. CEO Arvind Krishna said, “Demand for hybrid cloud and AI drove growth in both Software and Consulting in the first quarter. Today we’re a more focused business and our results reflect the execution of our strategy. We are off to a solid start for the year, and we now see revenue growth for 2022 at the high end of our model.” Procter & Gamble Earnings Boosted by Price Hikes Procter & Gamble (PG) shares are up 1% ahead of the open after beating Q1 expectations. The consumer goods giant reported adjusted earnings of $1.33 per share on $19.38 billion in revenue. That was better than analysts’ expectations for adjusted EPS of $1.29 on $18.73 billion in revenue. Revenue was up 7% year-over-year but sales volume, which strips out currency and price changes, only rose 3%. Procter & Gamble’s health care sector saw the strongest growth with organic sales rising 16%. Sales rose 10% in the fabric and home care division as well as the baby, feminine and family care segment. Grooming sales rose 8% and beauty sales rose just 3%. Procter & Gamble raised its 2022 revenue growth forecast to a range of 4% to 5% and said it expects earnings to be at the lower end of its range of 3% to 6%. Tesla Earnings On Deck Tesla (TSLA) shares are up 0.7% ahead of the open as traders gear up for the electric automaker to report Q1 earnings after the market close today. Tesla already reported record deliveries in the first quarter. The automaker delivered more than 310,000 vehicles last quarter and produced more than 305,000. Analysts are expecting $17.659 billion in Q1 revenue and earnings of $2.26 per share. Oil Rebounds On Supply Concerns Oil prices are rebounding today as concerns about supply weigh on the market. West Texas Intermediate crude futures are up more than 1% to over $103 bbl while Brent crude futures are up 1%, topping $108 bbl. A new report from OPEC+ shows the group produced 1.45 million barrels per day below its production target in March as Russian output fell. Russia is part of OPEC+. Libya has also been forced to shutdown several oil facilities due to protests. The American Petroleum Institute reported Wednesday that U.S. crude stocks fell by 4.5 million barrels last week. The Energy Information Administration releases its weekly crude inventory report today. Mortgage Demands Plummets Mortgage demand has plunged to nearly half of what it was a year ago. The Mortgage Bankers Association reports total application volume fell 5% weekly last week and was down nearly 50% year-over-year. The drop comes as the average 30-year contract mortgage rate rose to 5.2% from 5.13%. That rate was 3.2% a year ago. Refinance applications tumbled 8% weekly and 68% annually. New purchase applications were down 3% last week and 14% lower compared to a year ago. Existing Home Sales Preview The National Association of Realtors releases its existing home sales report for March at 10:00 a.m. ET. That data is expected to show home sales fell last month to a seasonally adjusted annual rate of 5.75 million units. Pending home sales tumbled 4.1% in February. Those pending sales represent contracts signed for a purchase expected to close in 30 to 60 days. The spring buying season is expected to be tight as supply remains low and mortgage rates spike. In Case You Missed It The Census Bureau reported housing starts rose 0.3% in March to a seasonally adjusted rate of 1.79 million units vs 1.73 million expected. Single-family starts fell 1.7% while multi-family starts rose 7.5%. Building permits rose 0.4% last month to a SAAR of 1.87 million units vs 1.82 million expected. Single-family permits tumbled 4.8% while multi-family permits surged 10.9%. The International Monetary Fund slashed its global economic growth forecast for 2022 and 2023. The group now expects global GDP to expand 3.6% this year and next. The IMF’s chief economist cited the war in Ukraine for that downgrade. The group also hiked its 2022 inflation forecast. The IMF expects 5.7% inflation in advanced economies this year and 8.7% inflation in developing economies.
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