{"id":62124,"date":"2022-06-29T09:02:30","date_gmt":"2022-06-29T13:02:30","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=62124"},"modified":"2022-06-29T09:09:29","modified_gmt":"2022-06-29T13:09:29","slug":"coffee-with-greta-recession-alarms-sounding","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/06\/29\/coffee-with-greta-recession-alarms-sounding\/","title":{"rendered":"Coffee With Greta: Recession Alarms Go Off"},"content":{"rendered":"

DJIA Futures: <\/b>+33 (+0.1%)<\/span><\/p>\n

SPX Futures: <\/b>-1 (-0.03%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-20 (-0.2%)<\/span><\/p>\n

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

Futures are falling flat after new data shows the U.S. economy contracted further than initially estimated in Q1.<\/span><\/p>\n

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

Q1 GDP Contraction Was Worse Than Originally Estimated<\/strong><\/h2>\n

The U.S. economy contracted further than originally estimated in the first quarter.\u00a0<\/span><\/p>\n

The Commerce Department released its final Q1 GDP revision this morning, showing the economy shrank 1.6% annually.\u00a0<\/span><\/p>\n

That was worse than the initial estimate of a 1.4% contraction.<\/span><\/p>\n

All eyes are now on the first Q2 GDP estimate on July 28.<\/span><\/p>\n

If that report shows another contraction it would meet the official criteria for a recession.<\/p>\n

Bed Bath & Beyond Sales Plunge<\/strong><\/h2>\n

Bed Bath & Beyond <\/b>(BBBY) shares are tumbling 12.6% ahead of the open after missing fiscal Q1 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

The retailer reported a loss of $2.83 per share on $1.46 billion in revenue.<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $1.39 per share on $1.51 billion in revenue.\u00a0<\/span><\/p>\n

Same-store sales tumbled 24% year-over-year, worse than the 20.1% drop in the previous quarter.\u00a0<\/span><\/p>\n

Bed Bath & Beyond also announced it is replacing CEO Mark Tritton.\u00a0<\/span><\/p>\n

Sue Gove, who serves as an independent director on the board, will tak over as interim CEO.\u00a0<\/span><\/p>\n

In a statement, Gove said, \u201cWe must deliver improved results. Our shareholders, Associates, customers, and partners all expect more.\u201d<\/span><\/p>\n

General Mills Tops Fiscal Q4 Expectations<\/strong><\/h2>\n

General Mills <\/b>(GIS) shares are up 2.4% in premarket trade after topping fiscal Q4 expectations on the top and bottom line.<\/span><\/p>\n

The company reported adjusted earnings of $1.12 per share on $4.89 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $1.03 on $4.81 billion in revenue.<\/span><\/p>\n

Sales rose 8% year-over-year and General Mills said price increases helped offset supply chain challenges and higher costs.\u00a0<\/span><\/p>\n

The Chairman and CEO said, “Though significant inflation and supply chain disruptions put pressure on our margins, we responded quickly to address those challenges and keep our brands on shelf for our customers and consumers.\u201d<\/span><\/p>\n

The company said it expects double-digit inflation on its costs of goods sold in the next fiscal year and plans to raise prices further.\u00a0<\/span><\/p>\n

Gas Prices Continue to Tumble<\/strong><\/h2>\n

U.S. gas prices are continuing to tumble.<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for regular gas fell to $4.868\/gal today.\u00a0<\/span><\/p>\n

That\u2019s down about 15 cents from the record high earlier this month.\u00a0<\/span><\/p>\n

Diesel prices are also continuing to decline.\u00a0<\/span><\/p>\n

The national average for diesel slipped to $5.78\/gal today, down from the peak of $5.816\/gal on June 19.<\/span><\/p>\n

Oil Prices Rise on Supply Worries<\/strong><\/h2>\n

Oil prices are rising for the fourth straight session as supply concerns outweigh economic growth worries.<\/span><\/p>\n

West Texas Intermediate crude futures are up 1.5% at over $113 bbl while Brent crude futures are up 1.4% to just under $120 bbl.\u00a0<\/span><\/p>\n

The market is concerned OPEC will not be able to make up for lost Russian oil supply.\u00a0<\/span><\/p>\n

Saudi Arabia and the UAE have so far been seen as the only two countries with spare capacity to fill that gap.\u00a0<\/span><\/p>\n

Tesla Begins Layoffs<\/strong><\/h2>\n

Tesla <\/b>(TSLA) shares are down 1% in premarket trade after the automaker layed off about 200 autopilot workers.\u00a0<\/span><\/p>\n

CNBC<\/span><\/a> confirmed the automaker is shutting down its office in San Mateo, CA and eliminating the jobs located there.\u00a0<\/span><\/p>\n

The employees at that location labeled videos from Tesla cars to improve the Autopilot system.\u00a0<\/span><\/p>\n

The layoffs are part of a wider cost-cutting effort at the company after CEO Elon Musk said he has a \u201csuper bad feeling\u201d about the economy.\u00a0<\/span><\/p>\n

Pinterest CEO Steps Down<\/strong><\/h2>\n

Pinterest <\/b>(PINS) shares are up 4.3% ahead of the open after announcing its CEO Bel Silbermann is stepping down.\u00a0<\/span><\/p>\n

The company made that announcement after the close on Tuesday and said a former Google executive, Bill Ready, will take his place.\u00a0<\/span><\/p>\n

Ready also previously served as the vice president and COO of <\/span>PayPal <\/b>(PYPL).<\/span><\/p>\n

In a statement, Silbermann said, \u201cIn our next chapter, we are focused on helping Pinners buy, try and act on all the great ideas they see. Bill is a great leader for this transition. He is a builder who deeply understands commerce and payments.\u201d<\/span><\/p>\n

Ready said in a LinkedIn <\/span>post,<\/span><\/a> \u201cAs someone who has spent most of my career in commerce and payments, it\u2019s so clear to me that Pinterest has the opportunity to build something unique\u2014something special.\u201d<\/span>In Case You Missed It<\/span><\/p>\n