{"id":61484,"date":"2022-05-20T08:50:41","date_gmt":"2022-05-20T12:50:41","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61484"},"modified":"2022-05-20T08:50:41","modified_gmt":"2022-05-20T12:50:41","slug":"coffee-with-greta-friday-bounce-cant-save-stocks","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/05\/20\/coffee-with-greta-friday-bounce-cant-save-stocks\/","title":{"rendered":"Coffee With Greta: The Bear Just Missed…"},"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>+272 (+0.9%)<\/span><\/p>\n

SPX Futures: <\/b>+43 (+1.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+173 (+1.5%)<\/span><\/p>\n

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

Futures are higher as the market looks poised for a Friday rally after two days of selling.<\/span><\/p>\n

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

S&P 500 Inching Closer to Bear Market<\/strong><\/h2>\n

The <\/span>S&P 500 <\/b>looks like it will avoid opening in bear market territory as the index teeters on the edge of that cliff.<\/span><\/p>\n

The official closing level for a bear market is 3,837.25, which would be down 20% from the index\u2019s most recent record in January.\u00a0<\/span><\/p>\n

If the S&P slips into that territory it would be its first bear market since the pandemic plunge in March 2020.<\/span><\/p>\n

The <\/span>Nasdaq <\/b>is already deep in a bear market, down 29% from its November record as of Thursday\u2019s close.<\/span><\/p>\n

The <\/span>Dow <\/b>has dropped more than 15% from its high.\u00a0<\/span><\/p>\n

Even with today\u2019s bounce, the Dow is on track for its first 8-week losing streak since 1932.<\/span><\/p>\n

Both the S&P and the Nasdaq are on track for their seventh straight weekly loss.<\/span><\/p>\n

Investors Flee To Bonds<\/strong><\/h2>\n

The 10-year and 30-year Treasury yields are both flat, after tumbling on Thursday as investors flee to safety amid turmoil on Wall Street.\u00a0<\/span><\/p>\n

Yields fall as more investors buy Treasury notes and bonds.\u00a0<\/span><\/p>\n

Analysts say this week\u2019s activity in the Treasury market shows investors are becoming increasingly concerned about the short-term future of the economy as the Fed tackles inflation.<\/span><\/p>\n

Foot Locker Rises on Earnings Beat<\/strong><\/h2>\n

Foot Locker <\/b>(FL) shares are up 4.2% ahead of the open after beating Q1 profit expectations.\u00a0<\/span><\/p>\n

The shoe retailer reported adjusted earnings of $1.60 per share on $2.18 billion in revenue.<\/span><\/p>\n

Analysts were expecting adjusted EPS of $1.54 on $2.2 billion in revenue.\u00a0<\/span><\/p>\n

Comparable-store sales fell 1.9% year over year and the company\u2019s gross margin fell by 1% as supply-chain costs and markdowns rose.<\/span><\/p>\n

Foot Locker forecast full-year earnings at the top range of its guidance.\u00a0<\/span><\/p>\n

The company expects EPS to be between $4.25 and $4.60 in 2022.<\/span><\/p>\n

Discount Retailer Ross Plunges On Earnings<\/strong><\/h2>\n

Ross Stores <\/b>(ROST) shares are tumbling 23.3% in premarket trade after missing Q1 expectations.\u00a0<\/span><\/p>\n

The discount retailer reported earnings of $0.97 per share on $4.33 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for EPS of $0.99 on $4.53 billion in revenue.\u00a0<\/span><\/p>\n

It was also a sharp decline from EPS of $1.34 on $4.52 billion a year ago.\u00a0<\/span><\/p>\n

Comparable-store sales dropped 7% compared to Q1 2021.\u00a0<\/span><\/p>\n

Ross forecast same-store sales will fall 4% to 6% annually in Q2 with EPS between $0.99 and $1.07.\u00a0<\/span><\/p>\n

Deere Slips Despite Earnings Beat<\/strong><\/h2>\n

Deere & Company <\/b>(DE) shares are down 5.7% ahead of the open despite beating Q1 expectations.\u00a0<\/span><\/p>\n

The company reported earnings of $6.81 per share on $13.4 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for EPS of $6.69 on $13.2 billion in revenue.\u00a0<\/span><\/p>\n

It was also an increase from Q1 2021 and Deere hiked its full-year earnings guidance.<\/span><\/p>\n

The company now expects $7.2 billion in net income this year, up from $6.9 billion previously and higher than analysts\u2019 estimates for $7 billion.<\/span><\/p>\n

Palo Alto Networks Jumps On Outlook<\/strong><\/h2>\n

Palo Alto Networks <\/b>(PANW) shares are up 11.8% in premarket trade after beating fiscal Q3 expectations and hiking its full-year guidance.\u00a0<\/span><\/p>\n

The cybersecurity company reported adjusted earnings of $1.79 per share on $1.39 billion in revenue.\u00a0<\/span><\/p>\n

That topped expectations for adjusted EPS of $1.68 on $1.36 billion in revenue.<\/span><\/p>\n

Revenue jumped 29% year-over-year.<\/span><\/p>\n

Palo Alto\u2019s CEO said, \u201cWe saw strong top-line growth in Q3, which is a testament to our teams\u2019 consistent execution in capitalizing on the strong cybersecurity demand trends.\u201d<\/span><\/p>\n

The company hiked its full-year outlook, forecasting adjusted EPS between $7.43 and $7.46 per share and revenue between $5.481 billion and $5.501 billion.\u00a0<\/span><\/p>\n

That beat analysts\u2019 estimates for EPS of $7.29 on $5.46 billion in revenue.<\/span><\/p>\n

Oil Prices Hold Steady<\/strong><\/h2>\n

Oil prices are slightly higher today as the market weighs several factors.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.3% to $112.50 bbl while Brent crude futures are 0.3% higher at $112.40 bbl.<\/span><\/p>\n

Concerns about slowing economic growth in the U.S. are offsetting expectations of a demand rebound in China.\u00a0<\/span><\/p>\n

The EU is also still working to approve a sanctions package which includes a ban of Russian oil imports.<\/span><\/p>\n

Both WTI and Brent are on track for their fourth straight weekly gain.\u00a0<\/span><\/p>\n

U.S. Gas Prices Hit New Record<\/strong><\/h2>\n

Average U.S. gas prices jumped to another record-high for the 11th day in a row today.<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for a gallon of regular rose to $4.593 overnight.<\/span><\/p>\n

Diesel slipped to $5.57\/gal after touching $5.577 earlier this week.<\/span><\/p>\n

Gas prices have been surging due to reduced refinery capacity in the U.S. on top of higher oil prices from Russia\u2019s war in Ukraine.\u00a0<\/span><\/p>\n

In Case You Missed It<\/strong><\/h2>\n
    \n
  • Existing home sales tumbled 2.4% in April as mortgage rates rose. The National Association of Realtors reported sales dropped to a seasonally adjusted annual rate of 5.61 million units vs 5.64 million expected. The median sales price jumped 14.8% year-over-year to a record $391,200. There were 1.03 million homes for sale at the end of April, representing a 2.2-month supply at the current sales pace.<\/span><\/li>\n<\/ul>\n
      \n
    • The Conference Board\u2019s leading economic index fell 0.3% in April. That drop was unexpected as economists had forecast a flat reading. The decline was largely due to a decline in home building permits and consumer confidence. The Conference Board expects the U.S. economy will expand just 2.3% this year vs 5.6% in 2021.<\/span><\/li>\n<\/ul>\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: +272 (+0.9%) SPX Futures: +43 (+1.1%) NASDAQ Futures: +173 (+1.5%) Good morning friends! Futures are higher as the market looks poised for a Friday rally after two days of selling. Let\u2019s get right to it! S&P 500 Inching Closer to Bear Market The S&P 500 looks like it will avoid opening in bear market territory as the index teeters on the edge of that cliff. The official closing level for a bear market is 3,837.25, which would be down 20% from the index\u2019s most recent record in January.\u00a0 If the S&P slips into that territory it would be its first bear market since the pandemic plunge in March 2020. The Nasdaq is already deep in a bear market, down 29% from its November record as of Thursday\u2019s close. The Dow has dropped more than 15% from its high.\u00a0 Even with today\u2019s bounce, the Dow is on track for its first 8-week losing streak since 1932. Both the S&P and the Nasdaq are on track for their seventh straight weekly loss. Investors Flee To Bonds The 10-year and 30-year Treasury yields are both flat, after tumbling on Thursday as investors flee to safety amid turmoil on Wall Street.\u00a0 Yields fall as more investors buy Treasury notes and bonds.\u00a0 Analysts say this week\u2019s activity in the Treasury market shows investors are becoming increasingly concerned about the short-term future of the economy as the Fed tackles inflation. Foot Locker Rises on Earnings Beat Foot Locker (FL) shares are up 4.2% ahead of the open after beating Q1 profit expectations.\u00a0 The shoe retailer reported adjusted earnings of $1.60 per share on $2.18 billion in revenue. Analysts were expecting adjusted EPS of $1.54 on $2.2 billion in revenue.\u00a0 Comparable-store sales fell 1.9% year over year and the company\u2019s gross margin fell by 1% as supply-chain costs and markdowns rose. Foot Locker forecast full-year earnings at the top range of its guidance.\u00a0 The company expects EPS to be between $4.25 and $4.60 in 2022. Discount Retailer Ross Plunges On Earnings Ross Stores (ROST) shares are tumbling 23.3% in premarket trade after missing Q1 expectations.\u00a0 The discount retailer reported earnings of $0.97 per share on $4.33 billion in revenue.\u00a0 That missed analysts\u2019 expectations for EPS of $0.99 on $4.53 billion in revenue.\u00a0 It was also a sharp decline from EPS of $1.34 on $4.52 billion a year ago.\u00a0 Comparable-store sales dropped 7% compared to Q1 2021.\u00a0 Ross forecast same-store sales will fall 4% to 6% annually in Q2 with EPS between $0.99 and $1.07.\u00a0 Deere Slips Despite Earnings Beat Deere & Company (DE) shares are down 5.7% ahead of the open despite beating Q1 expectations.\u00a0 The company reported earnings of $6.81 per share on $13.4 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for EPS of $6.69 on $13.2 billion in revenue.\u00a0 It was also an increase from Q1 2021 and Deere hiked its full-year earnings guidance. The company now expects $7.2 billion in net income this year, up from $6.9 billion previously and higher than analysts\u2019 estimates for $7 billion. Palo Alto Networks Jumps On Outlook Palo Alto Networks (PANW) shares are up 11.8% in premarket trade after beating fiscal Q3 expectations and hiking its full-year guidance.\u00a0 The cybersecurity company reported adjusted earnings of $1.79 per share on $1.39 billion in revenue.\u00a0 That topped expectations for adjusted EPS of $1.68 on $1.36 billion in revenue. Revenue jumped 29% year-over-year. Palo Alto\u2019s CEO said, \u201cWe saw strong top-line growth in Q3, which is a testament to our teams\u2019 consistent execution in capitalizing on the strong cybersecurity demand trends.\u201d The company hiked its full-year outlook, forecasting adjusted EPS between $7.43 and $7.46 per share and revenue between $5.481 billion and $5.501 billion.\u00a0 That beat analysts\u2019 estimates for EPS of $7.29 on $5.46 billion in revenue. Oil Prices Hold Steady Oil prices are slightly higher today as the market weighs several factors.\u00a0 West Texas Intermediate crude futures are up 0.3% to $112.50 bbl while Brent crude futures are 0.3% higher at $112.40 bbl. Concerns about slowing economic growth in the U.S. are offsetting expectations of a demand rebound in China.\u00a0 The EU is also still working to approve a sanctions package which includes a ban of Russian oil imports. Both WTI and Brent are on track for their fourth straight weekly gain.\u00a0 U.S. Gas Prices Hit New Record Average U.S. gas prices jumped to another record-high for the 11th day in a row today. AAA shows the national average for a gallon of regular rose to $4.593 overnight. Diesel slipped to $5.57\/gal after touching $5.577 earlier this week. Gas prices have been surging due to reduced refinery capacity in the U.S. on top of higher oil prices from Russia\u2019s war in Ukraine.\u00a0 In Case You Missed It Existing home sales tumbled 2.4% in April as mortgage rates rose. The National Association of Realtors reported sales dropped to a seasonally adjusted annual rate of 5.61 million units vs 5.64 million expected. The median sales price jumped 14.8% year-over-year to a record $391,200. There were 1.03 million homes for sale at the end of April, representing a 2.2-month supply at the current sales pace. The Conference Board\u2019s leading economic index fell 0.3% in April. That drop was unexpected as economists had forecast a flat reading. The decline was largely due to a decline in home building permits and consumer confidence. The Conference Board expects the U.S. economy will expand just 2.3% this year vs 5.6% in 2021.<\/p>\n","protected":false},"author":41,"featured_media":61486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61484","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\/61484","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=61484"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61484\/revisions"}],"predecessor-version":[{"id":61488,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61484\/revisions\/61488"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61486"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}