{"id":61614,"date":"2022-06-03T09:02:41","date_gmt":"2022-06-03T13:02:41","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61614"},"modified":"2022-06-03T09:02:41","modified_gmt":"2022-06-03T13:02:41","slug":"coffee-with-greta-stocks-drop-yields-spike-on-strong-jobs-report","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/06\/03\/coffee-with-greta-stocks-drop-yields-spike-on-strong-jobs-report\/","title":{"rendered":"Coffee With Greta: Stocks Drop, Yields Spike On Strong Jobs Report"},"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>-213 (-0.6%)<\/span><\/p>\n

SPX Futures: <\/b>-41 (-1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-197 (-1.5%)<\/span><\/p>\n

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

Futures are slipping as Treasury yields pop on a stronger-than-expected May jobs report.<\/span><\/p>\n

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

Hiring Was Still Strong in May<\/strong><\/h2>\n

The Labor Department\u2019s official May jobs report beat expectations.\u00a0<\/span><\/p>\n

That data was just released, showing the U.S. economy added 390,000 jobs last month.\u00a0<\/span><\/p>\n

That was better than expectations for a gain of 328,000.<\/span><\/p>\n

But it was still the smallest increase in 13 months and broke the 12 month streak of 400,000 or more, as the labor market nears full employment levels.<\/span><\/p>\n

The unemployment rate held steady at 3.6% vs expectations for a decrease to 3.5%.<\/span><\/p>\n

The labor force participation rate stood at 62.3% in May, still 1.1% lower compared to February 2020.<\/span><\/p>\n

Average hourly earnings rose 0.3% from April and jumped 5.2% year-over-year.\u00a0<\/span><\/p>\n

Although strong, those wage gains are still lagging behind inflation.<\/span><\/p>\n

The leisure and hospitality sector continued to lead job gains in May, adding 87,000 workers.\u00a0<\/span><\/p>\n

That sector is still down 1.3 million employees from pre-pandemic levels.<\/span><\/p>\n

Treasury Yields Pop After Strong Jobs Report<\/strong><\/h2>\n

Treasury yields are rising following the release of that strong jobs data.\u00a0<\/span><\/p>\n

The 10-year yield is up about 7 basis points to over 2.97% with the 30-year yield rising 7 basis points as well to over 3.15%.<\/span><\/p>\n

The strong jobs data gives more support to the Fed\u2019s plans to move ahead aggressively with larger rate hikes.<\/span><\/p>\n

Tesla Slides After Elon Musk Orders Hiring Freeze, Job Cuts<\/strong><\/h2>\n

Tesla <\/b>(TSLA) shares are down 4.4% following reports he has ordered a hiring freeze at the company.\u00a0<\/span><\/p>\n

Reuters reported Musk sent an email to executives on Thursday which was titled \u201cpause all hiring worldwide\u201d.<\/span><\/p>\n

In that message, Musk reportedly said he has a \u201csuper bad feeling\u201d about the economy and they need to cut about 10% of jobs.<\/span><\/p>\n

Tesla\u2019s annual SEC filing showed it had nearly 100,000 employees at the end of 2021.<\/span><\/p>\n

Coinbase Extends Hiring Pause<\/strong><\/span><\/h2>\n

Coinbase <\/b>(COIN) shares are falling 4.1% ahead of the open after the company announced it will extend a hiring pause for the \u201cforeseeable future\u201d.\u00a0<\/span><\/p>\n

In a blog <\/span>post<\/span><\/a>, the company also said it would rescind some already accepted job offers.\u00a0<\/span><\/p>\n

Coinbase said it will help those impacted by that move with job placement and resume reviews.<\/span><\/p>\n

The company\u2019s chief people officer said, \u201cIf we\u2019re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side.\u201d<\/span><\/p>\n

Lululemon Rises On Earnings Beat<\/strong><\/h2>\n

Lululemon <\/b>(LULU) shares are up 1.1% ahead of the open after beating fiscal Q1 expectations.\u00a0<\/span><\/p>\n

The athletic apparel retailer reported earnings of $1.48 per share on $1.61 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for EPS of $1.43 on $1.53 billion in revenue.<\/span><\/p>\n

Revenue rose 32% year-over-year and the company hiked its guidance.\u00a0<\/span><\/p>\n

Lululemon expects fiscal Q2 revenue between $1.75 billion and $1.78 billion vs analysts\u2019 expectations for $1.71 billion.\u00a0<\/span><\/p>\n

The company forecast full-year revenue between $7.61 billion and $7.71 billion, up from its prior forecast for $7.49 billion to $7.62 billion.\u00a0<\/span><\/p>\n

Analysts were expecting $7.54 billion in full-year sales.<\/span><\/p>\n

Apple\u2019s Impending Death Cross<\/strong><\/h2>\n

Apple <\/b>(AAPL) is poised to see an ominous pattern on its stock chart.<\/span><\/p>\n

The stock\u2019s 50-day moving average is on track to drop below its 200-day moving average, in a move known as a \u201cdeath cross\u201d.<\/span><\/p>\n

Apple\u2019s last death cross appeared on December 20, 2018.<\/span><\/p>\n

The 50-DMA has declined by an average of $0.30 over the past 20 sessions and fell to $159.573 on Thursday while the 200-DMA rose to $159.489.<\/span><\/p>\n

At that pace, the death cross is expected to happen today.\u00a0<\/span><\/p>\n

AAPL shares are down 1.9% in premarket trade.<\/span><\/p>\n

Oil Prices Slip<\/strong><\/h2>\n

Oil prices are rising modestly amid tight supply concerns.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.3% to over $117 bbl while Brent crude futures are up 0.4% to over $118 bbl.<\/span><\/p>\n

Opec+ agreed on Thursday to increase its oil output faster.\u00a0<\/span><\/p>\n

The group will increase production by 638,000 barrels per day in July and August.\u00a0<\/span><\/p>\n

That\u2019s ramped up from the 432,000 bpd increases over the past few months.\u00a0<\/span><\/p>\n

The Energy Information Administration also reported a steep drop in U.S. inventories on Thursday.\u00a0<\/span><\/p>\n

The EIA says crude stockpiles tumbled by 5.1 million barrels last week while gasoline inventories dropped by 700,000 barrels.\u00a0<\/span><\/p>\n

Analysts were expecting a 500,000 barrel drop in oil supplies and 100,000 barrel decrease in gas stockpiles.<\/span><\/p>\n

U.S. Gas Prices Surge to Fresh Record<\/strong><\/h2>\n

The national average for a gallon of regular gas jumped sharply again overnight.<\/span><\/p>\n

AAA<\/span><\/a> shows that price jumped to $4.761\/gal today.\u00a0<\/span><\/p>\n

That was an increase of nearly 5 cents from yesterday.\u00a0<\/span><\/p>\n

It\u2019s the third day in a row prices have jumped by more than 4 cents overnight.<\/span><\/p>\n

The state with the lowest average price currently is still Georgia, at $4.221\/gal.\u00a0<\/span><\/p>\n

The highest state average is in California which rose more than 3 cents overnight to $6.246\/gal.<\/span><\/p>\n

In Case You Missed It<\/strong><\/h2>\n
    \n
  • Microsoft <\/b>(MSFT) slashed its fiscal Q4 outlook Thursday citing \u201cunfavorable\u201d foreign exchange rates. The company lowered guidance for both sales and profit to ranges below analysts\u2019 estimates. The stock initially fell on that news but then rallied into the close. MSFT shares are down 1.4% ahead of the open.<\/span><\/li>\n<\/ul>\n
      \n
    • Cloud stocks led the rally in tech stocks on Thursday. <\/span>UiPath <\/b>(PATH) shares surged 17% after reporting a narrower-than-expected Q1 loss and hiking its full-year guidance. <\/span>Elastic <\/b>(ESTC) and <\/span>Datadog <\/b>(DDOG) shares also jumped sharply, closing 19% and 13% higher respectively.\u00a0<\/span><\/li>\n<\/ul>\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: -213 (-0.6%) SPX Futures: -41 (-1%) NASDAQ Futures: -197 (-1.5%) Good morning friends! Futures are slipping as Treasury yields pop on a stronger-than-expected May jobs report. Let\u2019s get right to it! Hiring Was Still Strong in May The Labor Department\u2019s official May jobs report beat expectations.\u00a0 That data was just released, showing the U.S. economy added 390,000 jobs last month.\u00a0 That was better than expectations for a gain of 328,000. But it was still the smallest increase in 13 months and broke the 12 month streak of 400,000 or more, as the labor market nears full employment levels. The unemployment rate held steady at 3.6% vs expectations for a decrease to 3.5%. The labor force participation rate stood at 62.3% in May, still 1.1% lower compared to February 2020. Average hourly earnings rose 0.3% from April and jumped 5.2% year-over-year.\u00a0 Although strong, those wage gains are still lagging behind inflation. The leisure and hospitality sector continued to lead job gains in May, adding 87,000 workers.\u00a0 That sector is still down 1.3 million employees from pre-pandemic levels. Treasury Yields Pop After Strong Jobs Report Treasury yields are rising following the release of that strong jobs data.\u00a0 The 10-year yield is up about 7 basis points to over 2.97% with the 30-year yield rising 7 basis points as well to over 3.15%. The strong jobs data gives more support to the Fed\u2019s plans to move ahead aggressively with larger rate hikes. Tesla Slides After Elon Musk Orders Hiring Freeze, Job Cuts Tesla (TSLA) shares are down 4.4% following reports he has ordered a hiring freeze at the company.\u00a0 Reuters reported Musk sent an email to executives on Thursday which was titled \u201cpause all hiring worldwide\u201d. In that message, Musk reportedly said he has a \u201csuper bad feeling\u201d about the economy and they need to cut about 10% of jobs. Tesla\u2019s annual SEC filing showed it had nearly 100,000 employees at the end of 2021. Coinbase Extends Hiring Pause Coinbase (COIN) shares are falling 4.1% ahead of the open after the company announced it will extend a hiring pause for the \u201cforeseeable future\u201d.\u00a0 In a blog post, the company also said it would rescind some already accepted job offers.\u00a0 Coinbase said it will help those impacted by that move with job placement and resume reviews. The company\u2019s chief people officer said, \u201cIf we\u2019re flexible and resilient, and remain focused on the long term, Coinbase will come out stronger on the other side.\u201d Lululemon Rises On Earnings Beat Lululemon (LULU) shares are up 1.1% ahead of the open after beating fiscal Q1 expectations.\u00a0 The athletic apparel retailer reported earnings of $1.48 per share on $1.61 billion in revenue.\u00a0 That topped analysts\u2019 expectations for EPS of $1.43 on $1.53 billion in revenue. Revenue rose 32% year-over-year and the company hiked its guidance.\u00a0 Lululemon expects fiscal Q2 revenue between $1.75 billion and $1.78 billion vs analysts\u2019 expectations for $1.71 billion.\u00a0 The company forecast full-year revenue between $7.61 billion and $7.71 billion, up from its prior forecast for $7.49 billion to $7.62 billion.\u00a0 Analysts were expecting $7.54 billion in full-year sales. Apple\u2019s Impending Death Cross Apple (AAPL) is poised to see an ominous pattern on its stock chart. The stock\u2019s 50-day moving average is on track to drop below its 200-day moving average, in a move known as a \u201cdeath cross\u201d. Apple\u2019s last death cross appeared on December 20, 2018. The 50-DMA has declined by an average of $0.30 over the past 20 sessions and fell to $159.573 on Thursday while the 200-DMA rose to $159.489. At that pace, the death cross is expected to happen today.\u00a0 AAPL shares are down 1.9% in premarket trade. Oil Prices Slip Oil prices are rising modestly amid tight supply concerns.\u00a0 West Texas Intermediate crude futures are up 0.3% to over $117 bbl while Brent crude futures are up 0.4% to over $118 bbl. Opec+ agreed on Thursday to increase its oil output faster.\u00a0 The group will increase production by 638,000 barrels per day in July and August.\u00a0 That\u2019s ramped up from the 432,000 bpd increases over the past few months.\u00a0 The Energy Information Administration also reported a steep drop in U.S. inventories on Thursday.\u00a0 The EIA says crude stockpiles tumbled by 5.1 million barrels last week while gasoline inventories dropped by 700,000 barrels.\u00a0 Analysts were expecting a 500,000 barrel drop in oil supplies and 100,000 barrel decrease in gas stockpiles. U.S. Gas Prices Surge to Fresh Record The national average for a gallon of regular gas jumped sharply again overnight. AAA shows that price jumped to $4.761\/gal today.\u00a0 That was an increase of nearly 5 cents from yesterday.\u00a0 It\u2019s the third day in a row prices have jumped by more than 4 cents overnight. The state with the lowest average price currently is still Georgia, at $4.221\/gal.\u00a0 The highest state average is in California which rose more than 3 cents overnight to $6.246\/gal. In Case You Missed It Microsoft (MSFT) slashed its fiscal Q4 outlook Thursday citing \u201cunfavorable\u201d foreign exchange rates. The company lowered guidance for both sales and profit to ranges below analysts\u2019 estimates. The stock initially fell on that news but then rallied into the close. MSFT shares are down 1.4% ahead of the open. Cloud stocks led the rally in tech stocks on Thursday. UiPath (PATH) shares surged 17% after reporting a narrower-than-expected Q1 loss and hiking its full-year guidance. Elastic (ESTC) and Datadog (DDOG) shares also jumped sharply, closing 19% and 13% higher respectively.\u00a0  <\/p>\n","protected":false},"author":41,"featured_media":61615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61614","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\/61614","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=61614"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61614\/revisions"}],"predecessor-version":[{"id":61618,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61614\/revisions\/61618"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61615"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61614"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61614"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61614"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}