Coffee With Greta: Chinese Stocks Jump, Oil Prices Rally
DJIA Futures: -164 (-0.5%) SPX Futures: -20 (-0.5%) NASDAQ Futures: -50 (-0.4%) Good morning friends! Futures are dropping as traders await more key economic data this week. Let’s get right to it! U.S.-Listed Chinese Stocks Rally Shares of Chinese companies listed in the U.S. are rallying ahead of the open as the country continues to relax Covid restrictions. Beijing and Shenzhen both said over the weekend they would relax a rule that required negative Covid tests for travel. The Invesco Golden Dragon China ETF (PGJ), which tracks the Nasdaq Golden Dragon China Index, is up 5.2% ahead of the open. Alibaba (BABA) shares are up 4.6%, Pinduoduo (PDD) is up 4.1%, while Bilibili (BILI) is surging 17.1%. Reuters reported China is set to announce a nationwide reduction in Covid testing requirements as the country moves away from its zero-Covid policy. Treasury Yields Start New Week Mixed Treasury yields are mixed this morning as traders look ahead to more economic data this week. The 2-year yield is up 6 basis points to 4.30% while the 10-year yield is down 1 basis point to 3.52%. The market is awaiting the latest ISM services PMI after the manufacturing PMI contracted for the first time in more than 2 years last week. This is also a blackout week for Fed speakers ahead of the bank’s meeting next week. CME Group’s FedWatch Tool shows 74.7% of traders still anticipating a 50 basis point hike at that meeting while 25.3% expect a 75 basis point move. Oil Prices Rise After OPEC+ Maintains Output Oil prices are rallying this morning after OPEC+ agreed to hold their output targets steady. West Texas Intermediate crude futures are up 3% to over $82 bbl while Brent crude futures are up 3% to over $88 bbl. OPEC+ met on Sunday and agreed to stick to the October plan to cut daily output by 2 million barrels from November through 2023. G7 countries and Australia also agreed last week on a $60 bbl price cap on seaborne Russian oil that takes effect today. The EU’s ban of Russian crude oil also goes into effect today. In Case You Missed It Ford (F) became the number 2 EV maker in the U.S. last week. The automaker reported Friday that it sold 53,752 all-electric vehicles in the U.S. through November, up nearly 103% year over year. That put its share of the U.S. EV market at 7.4% vs 5.7% a year earlier. That pushed Ford past Hyundai as the second-largest EV seller and maker in the U.S., behind Tesla (TSLA).
Continue Reading -->Coffee With Greta: Hot Job Growth Is Bad News For Traders
DJIA Futures: -426 (-1.2%) SPX Futures: -64 (-1.6%) NASDAQ Futures: -274 (-2.3%) Good morning friends! Futures are tumbling after the release of hot jobs data. Let’s get right to it! November Payroll Growth Runs Hot Job growth stayed hot in November despite the Fed’s rate hikes. The Labor Department reported the U.S. economy added 263,000 jobs last month. That as higher than expectations for 200,000 but still a decrease from the revised 284,000 in October. The unemployment rate was unchanged at 3.7%, in line with expectations. The labor force participation rate remained well below pre-pandemic levels at 62.1%. The leisure and hospitality sector added 88,000 jobs in November, led by a 62,000 worker gain in restaurants and bars. Healthcare employers added 45,000 workers, while government added 42,000 jobs. Only two major sectors saw declines last month. Retail trade lost 30,000 workers in November while transportation and warehousing employment declined by 15,000. Wages continued to increase more than expected last month with average hourly earnings up 0.6% monthly and 5.1% year over year vs 0.3% monthly, 4.6% annually expected. Job growth in October was revised higher by 23,000 while September was revised down by 46,000. Treasury Yields Jump After Hot Jobs Report Treasury yields are popping higher this morning after the release of that hot employment data. The 2-year yield is up 12 basis points to 4.35% while the 10-year yield is up 9 basis points to 3.60%. The strong job growth is not good news for traders who are hoping for a Fed pivot later this month. The Central Bank has said a weaker labor market will be key to lowering inflation. The Fed has raised particular concern about wage inflation, which continued to push higher in November. CME Group’s FedWatch Tool shows 69.9% of traders still anticipating a 50 basis point hike at the next meeting while 30.1% expect a 75 basis point move. Oil Prices Fall Flat Oil prices are flat this morning but still on track for weekly gains. West Texas Intermediate crude futures are up just 0.1% at $81 bbl while Brent crude futures are up 0.1% at $87 bbl. Easing Covid restrictions in two Chinese cities are helping to pare losses from rising strength of the U.S. dollar. The dollar edged higher this morning after dropping to 16-week lows. Ulta Crushes Q3 Expectations, Hikes Outlook Ulta (ULTA) shares are slightly lower today despite beating Q3 expectations. Here’s how the beauty retailer’s results compared to analysts’ expectations: EPS: $5.34 vs $4.15 expected Revenue: $2.34 billion vs $2.21 billion expected Comparable sales soared 14.6% year over year as shoppers continue to spend on makeup. The CEO said the results “reflect the sustained resilience of the beauty category and the strong emotional connection and loyalty we have cultivated with our guests.” Ulta hiked its full-year earnings forecast to between $22.60 and $22.90 per share. That’s was up from $20.70 to $21.20 per share previously. The company also expects revenue to be between $9.95 billion and $10 billion vs $9.65 billion and $9.75 billion previously. That higher guidance also topped analysts’ expectations for $21.40 EPS o $9.77 billion in revenue. Ulta expects full-year comparable sales growth of 12.6% to 13.2% year over year. In Case You Missed It The U.S. manufacturing sector contracted for the first time since the beginning of the pandemic last month. The Institute for Supply Management’s Manufacturing PMI fell to a 30-month low of 49% in November. That was down from 50.2% in October and lower than expectations for 49.2%. Any reading below 50% signals a contraction in factory activity.
Continue Reading -->Coffee With Greta: Fed’s Favorite Inflation Gauge Cools
DJIA Futures: +40 (+0.1%) SPX Futures: +13 (+0.3%) NASDAQ Futures: +35 (+0.3%) Good morning friends! Futures are rising as new data shows hot inflation pressures continuing to cool and a new month of trade is set to kick off. Let’s get right to it! PCE Inflation Cools Hot inflation pressures continued to cool in October. The Bureau of Economic Analysis’ PCE price index rose 0.3% monthly and 6% year over year. That was in-line with economists’ expectations and a slowdown from 6.2% annual inflation in September. The Fed’s favorite inflation gauge, the core PCE price index, slowed more than expected. That index was up 0.2% monthly vs 0.3% expected and 5% annually vs 5.1% in September. This new data comes after Fed Chair Jerome Powell made dovish comments about rate hikes during a speech at the Brookings Institution on Wednesday. Powell said, “The time for moderating the pace of rate increases may come as soon as the December meeting.” But he also warned, “we have a long way to go in restoring price stability.” The market rallied on those comments with CME Group’s FedWatch Tool now showing 79.4% of traders anticipating a 50bps hike at the December 14 meeting. Weekly Jobless Claims Tumble Weekly jobless claims fell more than expected last week. The Labor Department reported 225,000 Americans filed initial unemployment claims, a 16,000 person decrease from the previous week. That was better than expectations for 235,000. Continuing claims rose by 57,000 to 1.61 million in the week ending November 19. But claims are expected to begin rising soon in the wake of new layoff announcements in recent weeks. Salesforce Tops Q3 Expectations, Co-CEO Steps Down Salesforce (CRM) shares are falling 7% ahead of the open after the company beat Q3 expectations but its co-CEO stepped down. Here’s how the cloud software company’s results compared to analysts’ expectations: Adjusted EPS: $1.40 vs $1.22 expected Revenue: $7.84 billion vs $7.83 billion expected Sales of its subscription and support segment rose 13% to $7.23 billion while professional services sales jumped 25% to $604 million. Co-CEO Bret Taylor also announced he will step down from his position January 31, 2023. That will leave Marc Benioff as Chair and CEO of the company. Taylor is the second co-CEO with Benioff to leave Salesforce. Dollar General Slashes Growth Outlook Dollar General (DG) shares are dropping 5.7% in premarket trade after missing Q3 expectations and cutting its outlook. Here’s how the discount retailer’s results compared to analysts’ expectations: EPS: $2.33 vs $2.54 expected Revenue: $9.46 billion vs $9.42 billion Dollar General forecast Q3 earnings of $3.15 to $3.30 per share, lower than analysts’ estimates of $3.66. That implies Q4 EPS growth of 7% to 8% vs 12% to 14% previously forecast. Dollar General cited higher supply-chain costs for that weaker outlook. Kroger Hikes Full-Year Outlook Kroger (KR) shares are up 3.4% ahead of the open after beating Q3 expectations and hiking its full-year outlook. Here’s how the supermarket chain’s results compared to analysts’ expectations: Adjusted EPS: $0.88 vs $0.83 expected Revenue: $34.2 billion vs $33.9 billion expected Same-store sales jumped 6.9% year over year in the quarter vs analysts’ estimates for 4% growth. Kroger hiked its full-year outlook following the earnings beat. The company now expects full-year earnings of $4.05 to $4.15 per share vs $3.95 to $4.05 per share previously. In Case You Missed It The number of job openings in the U.S. economy fell more than expected in October. The Labor Department’s Job Openings and Labor Turnover Survey (JOLTS) showed there were 10.3 million available jobs in the month. That was down from 10.7 million in September and lower than 10.5 million expected. Vacancies still outnumber available workers 1.7 to 1. Pending home sales fell less than expected in October. The National Association of Realtors reported pending home sales dropped 4.6% monthly and plunged 37% year over year. That was better than economists’ expectations for a 5.5% decline and improved from the 8.7% drop in September. Pending sales represent purchase contracts expected to close within 30 to 60 days.
Continue Reading -->Coffee With Greta: Economic Data Sends Mixed Signals
DJIA Futures: -6 (-0.02%) SPX Futures: +1 (+0.03%) NASDAQ Futures: +11 (+0.1%) Good morning friends! Futures are flat as traders digest mixed economic data ahead of the Fed Chair’s speech today. Let’s get right to it! Private Sector Hiring Cools Private sector job growth came in lighter-than-expected in November. Payroll firm ADP reported private employers added 127,000 workers. That was lower than economists’ expectations for 190,000 and down sharply from 239,000 in October. The leisure and hospitality sector saw the largest gain, adding 224,000 workers. But that increase was offset by large losses in other sectors. Manufacturing lost 100,000 workers in November, professional and business services lost 77,000, financial activities lost 34,000 and information services lost 25,000. Pay increased 7.6% year over year, down from 7.7% in October. This is the first piece of key jobs data this week. The Labor Department releases the October job openings and labor turnover survey at 10:00 a.m. ET today. Then the official November jobs report will be out Friday morning. Economists expect that to show a gain of 200,000 jobs with the unemployment rate unchanged at 3.7%. Q3 GDP Growth Revised Higher The U.S. economy expanded more than initially estimated in the third quarter. The Bureau of Economic Analysis’ first revision of Q3 GDP came in at 2.9% vs 2.6% initially. That revision reflects increases in exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending. But residential fixed investment and private inventory investment were both lower than initially estimated. DoorDash Announces Layoffs DoorDash (DASH) shares are up 2.9% ahead of the open after the company announced new corporate layoffs. In a message to employees, the CEO said DoorDash is laying off 1,250 corporate employees as part of a continued cost-cutting effort. That represents about 15% of the company’s workforce. DoorDash is offering 17 weeks of severance to the impacted employees and healthcare benefits will continue through March 2023. Fed Chair Set to Speak Fed Chair Jerome Powell is scheduled to speak at the Brookings Institution at 1:30 p.m. ET today. Traders are hoping for more insight on the Fed’s plans to pivot to smaller rate hikes starting at the December meeting as recent data shows inflation cooling. CME Group’s FedWatch Tool shows 69.9% of traders expecting a 50 basis point hike at the December 14 meeting while 30.1% are anticipating another 75 basis point move. In a tweet this morning, Tesla (TSLA) CEO Elon Musk said the Fed must cut rates “immediately” to stop a severe recession. He said, “Trend is concerning. Fed needs to cut interest rates immediately. They are massively amplifying the probability of a severe recession.” The Fed Chair has previously said the U.S. will have to experience some economic pain in order to lower inflation. But he has also insisted there is still a path to lower inflation without plunging the economy into recession. The Fed also releases its latest Beige Book at 2:00 p.m. ET today. Overall Mortgage Demand Drops Despite Lower Rates Total mortgage demand fell last week despite rates dropping for the third week in a row. The Mortgage Bankers Association reported total application volume decreased 0.8% last week. Purchase applications rose 4% weekly but were still down 41% year over year. Refinance application dropped 13% weekly and 86% annually. The average 30-year contract rate fell to 6.49% from 6.67%. Pending Home Sales Expected to Fall The National Association of Realtors reports October pending home sales at 10:00 a.m. ET. That report is expected to show a 5.5% decline following the 10.2% decline in September. Existing home sales slumped 5.9% last month as high mortgage rates squeeze buyers. It’s also a traditionally slower time of year for home sales.
Continue Reading -->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 -->Why Apple $144 Is Key Right Now
We have mostly red arrows around the world to start the week as China protests dominate the narrative. Markets are starting to feel the reality of slower growth. Things might start to turn towards things being too recessionary in the year ahead. Traders want to know if SPX 4033 was the high of this active sequence or if we push into Christmas. We’ll see if SPX holds the 3962-3979 range to make it easier to stay with this active sequence. If not, it can get choppier and some active participants like me will have less risk on. SPY hit a high of $402.93 last week. I do have some SPY left on, but smaller. Today, we’ll see if the $398ish area can hold, or if we have a trend down day to put this active sequence under pressure. $395.82 is the level to watch below. QQQ has lagged for the past two months. Sometimes it participates, and other times it’s a headwind. We’ll see if it can hold the $284 area. Otherwise it can see $280.72 which has to hold to avoid trouble. Watch AAPL because it has the China headline pressure. (more on this below) Now let’s get into some of the other names I’m watching: AAPL has some talk that it will lose 6 million iPhone Pro units due to factory unrest. For today, see if it holds $144 and tries to reclaim $146.93 to take the news in stride. If not, it can become a bit of headwind. TSLA: you gotta love when a Red Dog Reversal gets you this type of upside follow-through. This morning, see if it tries to hold $176 and perhaps reclaim $180.63 to go green for cash flow. If it fails to hold $176, then that oversold broken bounce might be done. MSFT acted better than most tech names in this bounce from the October lows. Some are still long. $244ish needs to hold to keep active participants long. It gets choppier below that. AMZN is green in a sea of red and we’ll see if it can stay that way. It needs to get and stay above $94.58 to get away from the danger zone. NFLX is streaky at times with some tactical things to do. Last Tuesday, it did a Red Dog Reversal around the $282.66 pivot and saw $292+ Wednesday. $277 is key support. GOOGL seems to be acting a little better since the October lows. It hit $100+ and is trying to build a bull flag. It needs to hold the $94-$96 area to stay constructive. META hit a high of $118.72 in the recent rally. Last Tuesday, it did a small Red Dog Reversal around the $109.20 pivot. There is a flag pattern building here. It’s hard to tell if it stays intact. Scott Redler Positions Disclosure as of 2022-11-28 at 8.07.25 AM
Continue Reading -->How a Head & Shoulders Top Works
In this video, Scott Redler shares how he spotted a big head & shoulders top for the S&P 500 in 2022. Link mentioned in video: Scott’s mailing list Scott shares: How the 4 big active sequences played out on the weekly SPX chart Why the head & shoulders pattern can be trickier in real life Why he thinks the market will be range-bound and tricky in 2023 How you can put the head & shoulders to work for you
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.
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