{"id":63253,"date":"2022-07-29T08:57:19","date_gmt":"2022-07-29T12:57:19","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63253"},"modified":"2022-07-29T08:57:19","modified_gmt":"2022-07-29T12:57:19","slug":"coffee-with-greta-feds-fave-inflation-gauge-jumps","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/07\/29\/coffee-with-greta-feds-fave-inflation-gauge-jumps\/","title":{"rendered":"Coffee With Greta: Fed’s Fave Inflation Gauge Jumps"},"content":{"rendered":"

DJIA Futures: <\/b>+14 (+0.04%)<\/span><\/p>\n

SPX Futures: <\/b>+17 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+85 (+0.7%)<\/span><\/p>\n

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

Futures are mostly higher as the market digests fresh inflation data and strong big tech earnings.<\/span><\/p>\n

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

PCE Inflation Pushes Higher<\/span><\/h2>\n

Inflation pressures in the U.S. economy pushed higher in June.\u00a0<\/span><\/p>\n

The Bureau of Economic Analysis\u2019 Personal Consumption Expenditures (PCE) price index jumped 1% monthly and surged 6.8% year over year.\u00a0<\/span><\/p>\n

That was higher than expectations for a 0.9% monthly gain and an increase from the 6.3% annual pace in May.<\/span><\/p>\n

That\u2019s the highest headline reading since January 1982.\u00a0<\/span><\/p>\n

The core PCE price index \u2013 which is the Fed\u2019s preferred inflation gauge \u2013 rose 0.6% monthly and 4.8% annually.\u00a0<\/span><\/p>\n

That was higher than economists\u2019 expectations for 0.5% monthly and up from 4.7% annually in May.\u00a0<\/span><\/p>\n

The data shows high inflation pressures persisting even as the Fed has begun aggressive rate hikes.\u00a0<\/span><\/p>\n

Apple Tops Fiscal Q3 Expectations<\/span><\/h2>\n

Apple <\/b>(AAPL) shares are up 2.8% ahead of the open after beating fiscal Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

The iPhone maker reported earnings of $1.20 per share on $83 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for EPS of $1.16 on $82.81 billion in revenue.\u00a0<\/span><\/p>\n

iPhone revenue rose 3% annually to $40.67 billion vs $38.33 billion estimated.\u00a0<\/span><\/p>\n

Apple declined to provide fiscal Q4 guidance but CEO Tim Cook told <\/span>CNBC<\/span><\/a>, \u201cwe expect revenue to accelerate in the September quarter despite seeing some pockets of softness.\u201d<\/span><\/p>\n

Amazon Surges On Strong Q2 Sales<\/span><\/h2>\n

Amazon <\/b>(AMZN) shares are surging 10.5% in premarket trade after better-than-expected Q2 results.<\/span><\/p>\n

The online retail giant reported a loss of $0.20 per share on $121.23 billion in revenue, up 7% year-over-year.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for $119.3 billion in sales.\u00a0<\/span><\/p>\n

The profit loss included a $3.9 billion non-operating expense related to Amazon\u2019s stake in <\/span>Rivian <\/b>(RIVN).<\/span><\/p>\n

CEO Andy Jassy said, \u201cDespite continued inflationary pressures in fuel, energy, and transportation costs, we\u2019re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.\u201d<\/span><\/p>\n

Amazon Web Services revenue rose 33% to $19.7 billion, in line with expectations.<\/span><\/p>\n

Online sales fell 4% to $50.9 billion while physical store sales rose 12% to $4.7 billion.\u00a0<\/span><\/p>\n

Amazon projected Q3 sales between $125 billion and $130 billion vs analysts\u2019 estimates for $126.7 billion.\u00a0<\/span><\/p>\n

Roku Craters After Weak Q2<\/span><\/h2>\n

Roku <\/b>(ROKU) shares are plummeting 22.8% ahead of the open after weak Q2 results.<\/span><\/p>\n

The streaming giant reported a loss of $0.82 per share on $764 million in revenue.\u00a0<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $0.69 per share on $805 million in revenue.<\/span><\/p>\n

Roku blamed that weak performance on inflation and supply chain issues.\u00a0<\/span><\/p>\n

The company warned of a continued slowdown in the advertising market due to \u201can economic environment defined by recessionary fears.\u201d<\/span><\/p>\n

Roku said, \u201cWe believe this pullback mirrors the start of the pandemic in 2020, when marketers prepared for macro uncertainties by quickly reducing ad spend across all platforms.\u201d<\/span><\/p>\n

The company withdrew its full-year growth estimate citing market volatility.<\/span><\/p>\n

Intel Sinks After Q2 Earnings Miss, Weak Guidance<\/span><\/h2>\n

Intel <\/b>(INTC) shares are sinking 11% in premarket trade after missing Q2 expectations on the top and bottom line.<\/span><\/p>\n

The chipmaker reported adjusted earnings of $0.29 per share on $15.32 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for adjusted EPS of $0.70 on $17.92 billion in revenue.\u00a0<\/span><\/p>\n

Revenue tumbled 22% year over year.<\/span><\/p>\n

CEO Pat Gelsinger said, \u201cThe sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues.\u201d<\/span><\/p>\n

For the third quarter, Intel forecast adjusted earnings of $0.35 per share on $15 billion to $16 billion in revenue.\u00a0<\/span><\/p>\n

The company also lowered its full-year forecast.<\/span><\/p>\n

Intel expects full-year adjusted earnings of $2.30 per share and revenue between $65 billion and $68 billion.\u00a0<\/span><\/p>\n

That was down from prior guidance and lower than analysts\u2019 estimates for $3.42 EPS on $73.34 billion in revenue.<\/span><\/p>\n

Procter & Gamble Slides On Profit Miss, Weak Outlook<\/span><\/h2>\n

Procter & Gamble <\/b>(PG) shares are are falling 3.5% ahead of the open after missing fiscal Q4 profit expectations and releasing weak fiscal 2023 guidance.\u00a0<\/span><\/p>\n

The consumer goods giant reported adjusted earnings of $1.21 per share on $19.52 billion in revenue.\u00a0<\/span><\/p>\n

That was shy of analysts\u2019 expectations for EPS of $1.22 but higher than estimates for $19.4 billion in revenue.\u00a0<\/span><\/p>\n

The CEO said, \u201cAs we look forward to fiscal 2023, we expect another year of significant headwinds.\u201d<\/span><\/p>\n

The company expects fiscal 2023 earnings to be flat to up about 4%, which would be around $5.93 per share at the midpoint.\u00a0<\/span><\/p>\n

Analysts were expecting fiscal 2023 EPS of $6.02.<\/span><\/p>\n

Big Oil Companies Report Record Profits<\/span><\/h2>\n

Exxon Mobil <\/b>(XOM) shares are up 2.2% while <\/span>Chevron <\/b>(CVX) shares are up 2.8% after both companies reported record profits in Q2.\u00a0<\/span><\/p>\n

Exxon reported adjusted earnings of $4.14 per share vs $3.74 per share expected.<\/span><\/p>\n

But revenue fell short at $115.68 billion vs analysts\u2019 estimates for $132.7 billion.\u00a0<\/span><\/p>\n

Chevron beat expectations on the top and bottom line with adjusted EPS of $5.82 on $68.76 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 estimates for EPS of $5.10 on $59.29 billion in revenue.\u00a0<\/span><\/p>\n

The record-high profits came as oil prices remained high in the quarter and U.S. gas prices hit record highs in June.<\/span><\/p>\n

Oil Prices Climb On Supply Worries<\/span><\/h2>\n

Oil prices are climbing higher as focus turns to next week\u2019s OPEC+ meeting and low expectations the group will boost production.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up about 2% to over $98 bbl while Brent crude futures are up 1.9% to over $109 bbl.\u00a0<\/span><\/p>\n

But both contracts are still on track for a second straight monthly loss.<\/span><\/p>\n

Gas Prices Continue Pullback<\/span><\/h2>\n

U.S. gas prices fell for the 44th day in a row today.<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for regular gas fell nearly 2 cents overnight to $4.255\/gal.<\/span><\/p>\n

The national average for diesel also fell more than 2 cents overnight to $5.319\/gal.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Treasury Secretary Janet Yellen said the U.S. economy is not in a recession on Thursday. Her comments came after the Commerce Department reported GDP contracted 0.9% annually in Q2. That was the second straight quarterly contraction. Yellen said, \u201cjob creation is continuing, household finances remain strong, consumers are spending and businesses are growing.\u201d<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: +14 (+0.04%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +85 (+0.7%) Good morning friends! Futures are mostly higher as the market digests fresh inflation data and strong big tech earnings. Let\u2019s get right to it! PCE Inflation Pushes Higher Inflation pressures in the U.S. economy pushed higher in June.\u00a0 The Bureau of Economic Analysis\u2019 Personal Consumption Expenditures (PCE) price index jumped 1% monthly and surged 6.8% year over year.\u00a0 That was higher than expectations for a 0.9% monthly gain and an increase from the 6.3% annual pace in May. That\u2019s the highest headline reading since January 1982.\u00a0 The core PCE price index \u2013 which is the Fed\u2019s preferred inflation gauge \u2013 rose 0.6% monthly and 4.8% annually.\u00a0 That was higher than economists\u2019 expectations for 0.5% monthly and up from 4.7% annually in May.\u00a0 The data shows high inflation pressures persisting even as the Fed has begun aggressive rate hikes.\u00a0 Apple Tops Fiscal Q3 Expectations Apple (AAPL) shares are up 2.8% ahead of the open after beating fiscal Q3 expectations on the top and bottom line.\u00a0 The iPhone maker reported earnings of $1.20 per share on $83 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for EPS of $1.16 on $82.81 billion in revenue.\u00a0 iPhone revenue rose 3% annually to $40.67 billion vs $38.33 billion estimated.\u00a0 Apple declined to provide fiscal Q4 guidance but CEO Tim Cook told CNBC, \u201cwe expect revenue to accelerate in the September quarter despite seeing some pockets of softness.\u201d Amazon Surges On Strong Q2 Sales Amazon (AMZN) shares are surging 10.5% in premarket trade after better-than-expected Q2 results. The online retail giant reported a loss of $0.20 per share on $121.23 billion in revenue, up 7% year-over-year.\u00a0 That was better than analysts\u2019 expectations for $119.3 billion in sales.\u00a0 The profit loss included a $3.9 billion non-operating expense related to Amazon\u2019s stake in Rivian (RIVN). CEO Andy Jassy said, \u201cDespite continued inflationary pressures in fuel, energy, and transportation costs, we\u2019re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network.\u201d Amazon Web Services revenue rose 33% to $19.7 billion, in line with expectations. Online sales fell 4% to $50.9 billion while physical store sales rose 12% to $4.7 billion.\u00a0 Amazon projected Q3 sales between $125 billion and $130 billion vs analysts\u2019 estimates for $126.7 billion.\u00a0 Roku Craters After Weak Q2 Roku (ROKU) shares are plummeting 22.8% ahead of the open after weak Q2 results. The streaming giant reported a loss of $0.82 per share on $764 million in revenue.\u00a0 That was worse than analysts\u2019 expectations for a loss of $0.69 per share on $805 million in revenue. Roku blamed that weak performance on inflation and supply chain issues.\u00a0 The company warned of a continued slowdown in the advertising market due to \u201can economic environment defined by recessionary fears.\u201d Roku said, \u201cWe believe this pullback mirrors the start of the pandemic in 2020, when marketers prepared for macro uncertainties by quickly reducing ad spend across all platforms.\u201d The company withdrew its full-year growth estimate citing market volatility. Intel Sinks After Q2 Earnings Miss, Weak Guidance Intel (INTC) shares are sinking 11% in premarket trade after missing Q2 expectations on the top and bottom line. The chipmaker reported adjusted earnings of $0.29 per share on $15.32 billion in revenue.\u00a0 That missed analysts\u2019 expectations for adjusted EPS of $0.70 on $17.92 billion in revenue.\u00a0 Revenue tumbled 22% year over year. CEO Pat Gelsinger said, \u201cThe sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues.\u201d For the third quarter, Intel forecast adjusted earnings of $0.35 per share on $15 billion to $16 billion in revenue.\u00a0 The company also lowered its full-year forecast. Intel expects full-year adjusted earnings of $2.30 per share and revenue between $65 billion and $68 billion.\u00a0 That was down from prior guidance and lower than analysts\u2019 estimates for $3.42 EPS on $73.34 billion in revenue. Procter & Gamble Slides On Profit Miss, Weak Outlook Procter & Gamble (PG) shares are are falling 3.5% ahead of the open after missing fiscal Q4 profit expectations and releasing weak fiscal 2023 guidance.\u00a0 The consumer goods giant reported adjusted earnings of $1.21 per share on $19.52 billion in revenue.\u00a0 That was shy of analysts\u2019 expectations for EPS of $1.22 but higher than estimates for $19.4 billion in revenue.\u00a0 The CEO said, \u201cAs we look forward to fiscal 2023, we expect another year of significant headwinds.\u201d The company expects fiscal 2023 earnings to be flat to up about 4%, which would be around $5.93 per share at the midpoint.\u00a0 Analysts were expecting fiscal 2023 EPS of $6.02. Big Oil Companies Report Record Profits Exxon Mobil (XOM) shares are up 2.2% while Chevron (CVX) shares are up 2.8% after both companies reported record profits in Q2.\u00a0 Exxon reported adjusted earnings of $4.14 per share vs $3.74 per share expected. But revenue fell short at $115.68 billion vs analysts\u2019 estimates for $132.7 billion.\u00a0 Chevron beat expectations on the top and bottom line with adjusted EPS of $5.82 on $68.76 billion in revenue.\u00a0 That was better than analysts\u2019 estimates for EPS of $5.10 on $59.29 billion in revenue.\u00a0 The record-high profits came as oil prices remained high in the quarter and U.S. gas prices hit record highs in June. Oil Prices Climb On Supply Worries Oil prices are climbing higher as focus turns to next week\u2019s OPEC+ meeting and low expectations the group will boost production.\u00a0 West Texas Intermediate crude futures are up about 2% to over $98 bbl while Brent crude futures are up 1.9% to over $109 bbl.\u00a0 But both contracts are still on track for a second straight monthly loss. Gas Prices Continue Pullback U.S. gas prices fell for the 44th day in a row today. AAA shows the national average for regular gas fell nearly 2 cents overnight to $4.255\/gal. The national average for diesel also fell more than 2 cents overnight to $5.319\/gal. In Case You Missed It<\/p>\n","protected":false},"author":41,"featured_media":63256,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63253","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\/63253","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=63253"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63253\/revisions"}],"predecessor-version":[{"id":63258,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63253\/revisions\/63258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63256"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}