{"id":60909,"date":"2022-04-19T09:01:05","date_gmt":"2022-04-19T13:01:05","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=60909"},"modified":"2022-04-19T09:03:20","modified_gmt":"2022-04-19T13:03:20","slug":"coffee-with-greta-homebuilding-remains-strong","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/04\/19\/coffee-with-greta-homebuilding-remains-strong\/","title":{"rendered":"Coffee With Greta: Housing Market Still Strong"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

********<\/p>\n

DJIA Futures: <\/b>+9 (+0.02%)<\/span><\/p>\n

SPX Futures: <\/b>-1.5 (-0.03%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-15 (-0.1%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are mixed as traders digest new economic data and Q1 earnings.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Housing Starts, Building Permits Beat Expectations<\/strong><\/h2>\n

U.S. home construction rose more than expected last month even as mortgage rates surged.\u00a0<\/span><\/p>\n

The Census Bureau reported housing starts rose 0.3% in March to a seasonally adjusted annualized rate of 1.79 million units.\u00a0<\/span><\/p>\n

That was better than economists\u2019 expectations for a SAAR of 1.73 million units.\u00a0<\/span><\/p>\n

Housing starts were 4% higher year-over-year.\u00a0<\/span><\/p>\n

But that growth was centered in multi-family units.\u00a0<\/span><\/p>\n

Single-family starts fell 1.7% from February to March while multi-family starts jumped 7.5%.<\/span><\/p>\n

The strength in building is expected to continue as the number of permits approved for future projects also rose more than expected.<\/span><\/p>\n

The Census Bureau reported permits rose 0.4% to a SAAR of 1.87 million units vs 1.82 million units expected.<\/span><\/p>\n

Single-family permits fell 4.8% monthly while multi-family starts surged 10.9%.<\/span><\/p>\n

Johnson & Johnson Lowers 2022 Outlook<\/strong><\/h2>\n

Johnson & Johnson <\/b>(JNJ) shares are down 0.7% ahead of the open after beating Q1 profit expectations and lowering its full-year guidance.\u00a0<\/span><\/p>\n

The pharmaceutical giant reported earnings of $2.67 per share vs $2.58 expected.\u00a0<\/span><\/p>\n

Revenue came in short at $23.4 billion vs analysts\u2019 expectations for $23.6 billion.\u00a0<\/span><\/p>\n

The company said it sold $457 million of its Covid vaccine globally last quarter.\u00a0<\/span><\/p>\n

But J&J is no longer providing specific guidance for Covid vaccine sales.<\/span><\/p>\n

The company lowered its 2022 sales forecast by about $1 billion to between $94.8 billion and $95.8 billion.\u00a0<\/span><\/p>\n

J&J lowered its earnings forecast by about $0.25 per share to between $10.15 and $10.35.<\/span><\/p>\n

Hasbro Misses Q1 Earnings Expectations<\/strong><\/h2>\n

Hasbro <\/b>(HAS) shares are up 0.3% in premarket trade despite missing Q1 profit expectations.\u00a0<\/span><\/p>\n

The toymaker reported adjusted earnings of $0.57 per share vs analysts\u2019 estimates for $0.61.\u00a0<\/span><\/p>\n

Revenue of $1.16 billion was better than $1.15 billion expected.\u00a0<\/span><\/p>\n

Hasbro warned Russia\u2019s invasion of Ukraine will cost it about $100 million in revenue this year.<\/span><\/p>\n

The company forecast fiscal 2022 profit growth in the mid-single digits, up from the previous guidance for growth in the low-single digits.<\/span><\/p>\n

Netflix Earnings On Deck<\/strong><\/h2>\n

Netflix <\/b>(NFLX) shares are flat ahead of the open as traders look ahead to the streaming giant\u2019s Q1 earnings this afternoon.\u00a0<\/span><\/p>\n

The company will be the first of the FAANG stocks to report this earnings season.\u00a0<\/span><\/p>\n

Netflix had a weak Q1 forecast in its Q4 earnings in January, projecting just 2.5 million net new subscribers.\u00a0<\/span><\/p>\n

The company forecast revenue of $7.9 billion.\u00a0<\/span><\/p>\n

Traders are focused on Netflix\u2019s outlook for Q2, which has historically been the company\u2019s weakest each year.<\/p>\n

Treasury Yields Jump<\/strong><\/h2>\n

U.S. Treasury yields are continuing to rally as traders remain concerned about inflation.\u00a0<\/span><\/p>\n

The yield on the 10-year Treasury note is up 5 basis points at 2.92%.\u00a0<\/span><\/p>\n

That\u2019s the highest level since late-2018.\u00a0<\/span><\/p>\n

But the curve between the 2-year and 10-year yield remains positive.\u00a0<\/span><\/p>\n

The 2-year yield is up 6 basis points to 2.53%<\/span><\/p>\n

Oil Slides on Demand Concerns<\/strong><\/h2>\n

Oil prices are falling today amid new demand concerns.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are down 2.4% to under $106 bbl while Brent crude futures are down 2.4% to about $110 bbl.\u00a0<\/span><\/p>\n

The drop comes despite Libya halting some exports due to closures at some of its facilities.\u00a0<\/span><\/p>\n

The IMF is set to release its World Economic Outlook today.\u00a0<\/span><\/p>\n

Analysts expect that growth forecast to be lower due to the war in Ukraine.\u00a0<\/span><\/p>\n

Natural Gas Prices Cool After Hitting 13-year High<\/strong><\/h2>\n

U.S. natural gas prices are cooling today after surging to the highest level in more than 13 years on Monday.<\/span><\/p>\n

LNG futures are down 4.9% at $7.44 per million British thermal units.\u00a0<\/span><\/p>\n

This comes after futures hit a high of $8.05 per million British thermal units Monday, the highest price since September 2008.\u00a0<\/span><\/p>\n

U.S. LNG prices are still up more than 100% YTD.<\/span><\/p>\n

The rally comes as the war in Ukraine continues to squeeze the global energy market.\u00a0<\/span><\/p>\n

Forecasters are also now expecting cooler spring temperatures this year, heightening the potential demand for natural gas.\u00a0<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • A federal judge in Florida overturned the CDC\u2019s mask mandate for public transportation Monday. The judge ruled the agency overstepped its authority when issuing the mandate. The Biden Administration confirmed TSA is no longer enforcing the mandate after that decision. The White House press secretary said they are reviewing the ruling and the Justice Department will decide whether or not to appeal.\u00a0<\/span><\/li>\n
  • The National Association of Homebuilders Sentiment Index fell 2 points this month to 77. That drop was in-line with expectations and marks the 4th straight decline. Sentiment about current sales conditions fell 2 points to 85, buyer traffic tumbled 6 points to 60, and 6-month sales expectations rose 3 points to 73. The drop in sentiment comes as mortgage rates have spiked over the past month, squeezing more buyers out of the market.<\/span><\/li>\n<\/ul>\n

     <\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    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: +9 (+0.02%) SPX Futures: -1.5 (-0.03%) NASDAQ Futures: -15 (-0.1%) Good morning friends! Futures are mixed as traders digest new economic data and Q1 earnings.\u00a0 Let\u2019s get right to it! Housing Starts, Building Permits Beat Expectations U.S. home construction rose more than expected last month even as mortgage rates surged.\u00a0 The Census Bureau reported housing starts rose 0.3% in March to a seasonally adjusted annualized rate of 1.79 million units.\u00a0 That was better than economists\u2019 expectations for a SAAR of 1.73 million units.\u00a0 Housing starts were 4% higher year-over-year.\u00a0 But that growth was centered in multi-family units.\u00a0 Single-family starts fell 1.7% from February to March while multi-family starts jumped 7.5%. The strength in building is expected to continue as the number of permits approved for future projects also rose more than expected. The Census Bureau reported permits rose 0.4% to a SAAR of 1.87 million units vs 1.82 million units expected. Single-family permits fell 4.8% monthly while multi-family starts surged 10.9%. Johnson & Johnson Lowers 2022 Outlook Johnson & Johnson (JNJ) shares are down 0.7% ahead of the open after beating Q1 profit expectations and lowering its full-year guidance.\u00a0 The pharmaceutical giant reported earnings of $2.67 per share vs $2.58 expected.\u00a0 Revenue came in short at $23.4 billion vs analysts\u2019 expectations for $23.6 billion.\u00a0 The company said it sold $457 million of its Covid vaccine globally last quarter.\u00a0 But J&J is no longer providing specific guidance for Covid vaccine sales. The company lowered its 2022 sales forecast by about $1 billion to between $94.8 billion and $95.8 billion.\u00a0 J&J lowered its earnings forecast by about $0.25 per share to between $10.15 and $10.35. Hasbro Misses Q1 Earnings Expectations Hasbro (HAS) shares are up 0.3% in premarket trade despite missing Q1 profit expectations.\u00a0 The toymaker reported adjusted earnings of $0.57 per share vs analysts\u2019 estimates for $0.61.\u00a0 Revenue of $1.16 billion was better than $1.15 billion expected.\u00a0 Hasbro warned Russia\u2019s invasion of Ukraine will cost it about $100 million in revenue this year. The company forecast fiscal 2022 profit growth in the mid-single digits, up from the previous guidance for growth in the low-single digits. Netflix Earnings On Deck Netflix (NFLX) shares are flat ahead of the open as traders look ahead to the streaming giant\u2019s Q1 earnings this afternoon.\u00a0 The company will be the first of the FAANG stocks to report this earnings season.\u00a0 Netflix had a weak Q1 forecast in its Q4 earnings in January, projecting just 2.5 million net new subscribers.\u00a0 The company forecast revenue of $7.9 billion.\u00a0 Traders are focused on Netflix\u2019s outlook for Q2, which has historically been the company\u2019s weakest each year. Treasury Yields Jump U.S. Treasury yields are continuing to rally as traders remain concerned about inflation.\u00a0 The yield on the 10-year Treasury note is up 5 basis points at 2.92%.\u00a0 That\u2019s the highest level since late-2018.\u00a0 But the curve between the 2-year and 10-year yield remains positive.\u00a0 The 2-year yield is up 6 basis points to 2.53% Oil Slides on Demand Concerns Oil prices are falling today amid new demand concerns.\u00a0 West Texas Intermediate crude futures are down 2.4% to under $106 bbl while Brent crude futures are down 2.4% to about $110 bbl.\u00a0 The drop comes despite Libya halting some exports due to closures at some of its facilities.\u00a0 The IMF is set to release its World Economic Outlook today.\u00a0 Analysts expect that growth forecast to be lower due to the war in Ukraine.\u00a0 Natural Gas Prices Cool After Hitting 13-year High U.S. natural gas prices are cooling today after surging to the highest level in more than 13 years on Monday. LNG futures are down 4.9% at $7.44 per million British thermal units.\u00a0 This comes after futures hit a high of $8.05 per million British thermal units Monday, the highest price since September 2008.\u00a0 U.S. LNG prices are still up more than 100% YTD. The rally comes as the war in Ukraine continues to squeeze the global energy market.\u00a0 Forecasters are also now expecting cooler spring temperatures this year, heightening the potential demand for natural gas.\u00a0 In Case You Missed It A federal judge in Florida overturned the CDC\u2019s mask mandate for public transportation Monday. The judge ruled the agency overstepped its authority when issuing the mandate. The Biden Administration confirmed TSA is no longer enforcing the mandate after that decision. The White House press secretary said they are reviewing the ruling and the Justice Department will decide whether or not to appeal.\u00a0 The National Association of Homebuilders Sentiment Index fell 2 points this month to 77. That drop was in-line with expectations and marks the 4th straight decline. Sentiment about current sales conditions fell 2 points to 85, buyer traffic tumbled 6 points to 60, and 6-month sales expectations rose 3 points to 73. The drop in sentiment comes as mortgage rates have spiked over the past month, squeezing more buyers out of the market.    <\/p>\n","protected":false},"author":41,"featured_media":60910,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-60909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=60909"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60909\/revisions"}],"predecessor-version":[{"id":60914,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60909\/revisions\/60914"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/60910"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=60909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=60909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=60909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}