{"id":63399,"date":"2022-08-10T08:59:12","date_gmt":"2022-08-10T12:59:12","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63399"},"modified":"2022-08-10T09:00:20","modified_gmt":"2022-08-10T13:00:20","slug":"coffee-with-greta-stocks-rip-higher-as-inflation-slows","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/10\/coffee-with-greta-stocks-rip-higher-as-inflation-slows\/","title":{"rendered":"Coffee With Greta: Stocks Rip Higher As Inflation Slows"},"content":{"rendered":"

DJIA Futures: <\/b>+408 (+1.3%)<\/span><\/p>\n

SPX Futures: <\/b>+70 (+1.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+313 (+2.4%)<\/span><\/p>\n

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

Futures are rallying on better-than-expected inflation data.<\/span><\/p>\n

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

Inflation Cools More Than Expected<\/span><\/h2>\n

U.S. inflation pressures slowed more than expected in July as gas prices fell from record highs.\u00a0<\/span><\/p>\n

The Bureau of Labor Statistics' consumer price index was unchanged on a monthly basis and rose 8.5% year-over-year.<\/span><\/p>\n

That was better than economists\u2019 expectations for a 0.2% increase monthly and 8.7% annually.\u00a0<\/span><\/p>\n

The slowdown was driven by a steep drop in oil and gas prices.<\/span><\/p>\n

Fuel oil prices fell 11% monthly but were still up 75.6% year over year.\u00a0<\/span><\/p>\n

Gas prices dropped 7.7% monthly and were still 44% higher annually.\u00a0<\/span><\/p>\n

Those drops helped offset rising costs for food and housing.\u00a0<\/span><\/p>\n

Grocery prices rose 1.3% monthly and jumped 13.1% year over year.<\/span><\/p>\n

Shelter prices rose 0.5% monthly and 5.7% annually.\u00a0<\/span><\/p>\n

The core CPI, which excludes food and energy prices, rose 0.3% monthly and 5.9% annually, unchanged from June.<\/span><\/p>\n

Coinbase Loses Over $1 Billion In Q2<\/span><\/h2>\n

Coinbase <\/b>(COIN) shares are up 2.9% ahead of the open despite reporting a $1.1 billion second-quarter loss.<\/span><\/p>\n

The crypto exchange reported a loss of $4.98 per share on $808.3 million in revenue.\u00a0<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $2.65 per share on $832.2 million in revenue.<\/span><\/p>\n

Revenue tumbled nearly 64% year-over-year as the crypto market collapsed.<\/span><\/p>\n

The profit loss included a $377 million non-cash cryptocurrency-related impairment charge.\u00a0<\/span><\/p>\n

Coinbase\u2019s own crypto assets were worth just $428 million at the end of Q2 compared to about $1 billion at the end of Q1.\u00a0<\/span><\/p>\n

In a <\/span>letter to shareholders<\/span><\/a>, the company said, \u201cQ2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program.\u201d<\/span><\/p>\n

The company had 9 million monthly transacting users in Q2, down from 9.2 million in Q1.<\/span><\/p>\n

Coinbase forecast it will have 7 million to 9 million monthly transacting users in 2022, down from its previous forecast for up to 15 million.<\/span><\/p>\n

Roblox Plunges On Q2 Miss<\/span><\/h2>\n

Roblox <\/b>(RBLX) shares are tumbling 10.6% in premarket trade after missing Q2 expectations on the top and bottom line.<\/span><\/p>\n

The video game platform reported a loss of $0.30 per share on $639.9 million in revenue.\u00a0<\/span><\/p>\n

That was steeper than analysts\u2019 estimates for a loss of $0.21 per share and missed revenue expectations of $644.4 million.\u00a0<\/span><\/p>\n

Roblox had 52.2 million average daily active users last quarter, down from 54.1 million in Q1.\u00a0<\/span><\/p>\n

Average bookings per daily active user tumbled 21% year over year to $12.25.<\/span><\/p>\n

The Chief Business Officer remained optimistic about the future in an interview with <\/span>CNBC<\/span><\/a> saying, \u201cWe\u2019re very much in investment mode and that\u2019s going to put a little bit of drag on earnings, but these are investments that are the right investments for us to make that will pay off in the three-to-five-year timeframe.\u201d<\/span><\/p>\n

Unity Software Cuts Outlook<\/span><\/h2>\n

Unity Software <\/b>(U) shares are 3.6% ahead of the open after reporting mixed Q2 results.\u00a0<\/span><\/p>\n

The videogame software company reported an adjusted loss of $0.18 per share on $297 million in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for a $0.21 per share loss but revenue fell short of estimates for $299.7 million.<\/span><\/p>\n

The results came hours after <\/span>Applovin <\/b>(APP) offered to buy Unity in an all-stock transaction worth $20 billion.\u00a0<\/span><\/p>\n

Unity forecast Q33 revenue between $315 million and $335 million with full-year sales ranging between $1.3 billion and $1.35 billion.\u00a0<\/span><\/p>\n

That was down from its previous full-year forecast for revenue between $1.35 billion and $1.43 billion.\u00a0<\/span><\/p>\n

Analysts were expecting Q3 revenue of $34.37 million and $1.36 billion for the full-year.<\/span><\/p>\n

Sweetgreen Plummets After Slashing Outlook, Announcing Layoffs<\/span><\/h2>\n

Sweetgreen <\/b>(SG) shares are plunging 20.8% in premarket trade after cutting its 2022 forecast and announcing layoffs.<\/span><\/p>\n

The salad chain reported a loss of $0.36 per share on $124.9 million in revenue.\u00a0<\/span><\/p>\n

That was in line with analysts\u2019 profit loss expectations but lower than estimates for $130.2 million in revenue.<\/span><\/p>\n

Sweetgreen said it laid off 5% of its support center workforce and is downsizing to a smaller office building to lower operating costs.<\/span><\/p>\n

The company forecast full-year revenue of $480 million to $500 million, down from its previous forecast of $515 million to $535 million.\u00a0<\/span><\/p>\n

Same-store sales are now expected to grow 13% to 19% year over year vs the prior forecast for 20% to 25% growth.<\/span><\/p>\n

Oil Prices Flat As U.S. Inventory Jumps Unexpectedly<\/span><\/h2>\n

Oil prices are flat after an unexpected increase in U.S. inventories last week.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.1% at $90 bbl while Brent crude futures are up 0.03% at $96 bbl.<\/span><\/p>\n

The American Petroleum Institute reported Tuesday that U.S. crude stockpiles rose by 2.2 million barrels last week.\u00a0<\/span><\/p>\n

Analysts were expecting a 400,000 barrel decline in inventories.\u00a0<\/span><\/p>\n

The unexpected jump signals a potential drop in demand.\u00a0<\/span><\/p>\n

The Energy Information Administration reports official inventory levels today.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Confidence among small business owners rose more than expected in July. The NFIB Small Business Optimism Index rose to 89.9 from 89.5 in June. Economists were expecting the index to be unchanged. 37% of owners said inflation is their single most important problem, up 3% from June and the highest level since Q4 1979. NFIB\u2019s Chief Economist said, “The uncertainty in the small-business sector is climbing again as owners continue to manage historic inflation, labor shortages, and supply chain disruptions.\u201d<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: +408 (+1.3%) SPX Futures: +70 (+1.7%) NASDAQ Futures: +313 (+2.4%) Good morning friends! Futures are rallying on better-than-expected inflation data. Let\u2019s get right to it! Inflation Cools More Than Expected U.S. inflation pressures slowed more than expected in July as gas prices fell from record highs.\u00a0 The Bureau of Labor Statistics’ consumer price index was unchanged on a monthly basis and rose 8.5% year-over-year. That was better than economists\u2019 expectations for a 0.2% increase monthly and 8.7% annually.\u00a0 The slowdown was driven by a steep drop in oil and gas prices. Fuel oil prices fell 11% monthly but were still up 75.6% year over year.\u00a0 Gas prices dropped 7.7% monthly and were still 44% higher annually.\u00a0 Those drops helped offset rising costs for food and housing.\u00a0 Grocery prices rose 1.3% monthly and jumped 13.1% year over year. Shelter prices rose 0.5% monthly and 5.7% annually.\u00a0 The core CPI, which excludes food and energy prices, rose 0.3% monthly and 5.9% annually, unchanged from June. Coinbase Loses Over $1 Billion In Q2 Coinbase (COIN) shares are up 2.9% ahead of the open despite reporting a $1.1 billion second-quarter loss. The crypto exchange reported a loss of $4.98 per share on $808.3 million in revenue.\u00a0 That was worse than analysts\u2019 expectations for a loss of $2.65 per share on $832.2 million in revenue. Revenue tumbled nearly 64% year-over-year as the crypto market collapsed. The profit loss included a $377 million non-cash cryptocurrency-related impairment charge.\u00a0 Coinbase\u2019s own crypto assets were worth just $428 million at the end of Q2 compared to about $1 billion at the end of Q1.\u00a0 In a letter to shareholders, the company said, \u201cQ2 was a test of durability for crypto companies and a complex quarter overall. Dramatic market movements shifted user behavior and trading volume, which impacted transaction revenue, but also highlighted the strength of our risk management program.\u201d The company had 9 million monthly transacting users in Q2, down from 9.2 million in Q1. Coinbase forecast it will have 7 million to 9 million monthly transacting users in 2022, down from its previous forecast for up to 15 million. Roblox Plunges On Q2 Miss Roblox (RBLX) shares are tumbling 10.6% in premarket trade after missing Q2 expectations on the top and bottom line. The video game platform reported a loss of $0.30 per share on $639.9 million in revenue.\u00a0 That was steeper than analysts\u2019 estimates for a loss of $0.21 per share and missed revenue expectations of $644.4 million.\u00a0 Roblox had 52.2 million average daily active users last quarter, down from 54.1 million in Q1.\u00a0 Average bookings per daily active user tumbled 21% year over year to $12.25. The Chief Business Officer remained optimistic about the future in an interview with CNBC saying, \u201cWe\u2019re very much in investment mode and that\u2019s going to put a little bit of drag on earnings, but these are investments that are the right investments for us to make that will pay off in the three-to-five-year timeframe.\u201d Unity Software Cuts Outlook Unity Software (U) shares are 3.6% ahead of the open after reporting mixed Q2 results.\u00a0 The videogame software company reported an adjusted loss of $0.18 per share on $297 million in revenue.\u00a0 That was better than analysts\u2019 expectations for a $0.21 per share loss but revenue fell short of estimates for $299.7 million. The results came hours after Applovin (APP) offered to buy Unity in an all-stock transaction worth $20 billion.\u00a0 Unity forecast Q33 revenue between $315 million and $335 million with full-year sales ranging between $1.3 billion and $1.35 billion.\u00a0 That was down from its previous full-year forecast for revenue between $1.35 billion and $1.43 billion.\u00a0 Analysts were expecting Q3 revenue of $34.37 million and $1.36 billion for the full-year. Sweetgreen Plummets After Slashing Outlook, Announcing Layoffs Sweetgreen (SG) shares are plunging 20.8% in premarket trade after cutting its 2022 forecast and announcing layoffs. The salad chain reported a loss of $0.36 per share on $124.9 million in revenue.\u00a0 That was in line with analysts\u2019 profit loss expectations but lower than estimates for $130.2 million in revenue. Sweetgreen said it laid off 5% of its support center workforce and is downsizing to a smaller office building to lower operating costs. The company forecast full-year revenue of $480 million to $500 million, down from its previous forecast of $515 million to $535 million.\u00a0 Same-store sales are now expected to grow 13% to 19% year over year vs the prior forecast for 20% to 25% growth. Oil Prices Flat As U.S. Inventory Jumps Unexpectedly Oil prices are flat after an unexpected increase in U.S. inventories last week.\u00a0 West Texas Intermediate crude futures are up 0.1% at $90 bbl while Brent crude futures are up 0.03% at $96 bbl. The American Petroleum Institute reported Tuesday that U.S. crude stockpiles rose by 2.2 million barrels last week.\u00a0 Analysts were expecting a 400,000 barrel decline in inventories.\u00a0 The unexpected jump signals a potential drop in demand.\u00a0 The Energy Information Administration reports official inventory levels today. In Case You Missed It Confidence among small business owners rose more than expected in July. The NFIB Small Business Optimism Index rose to 89.9 from 89.5 in June. Economists were expecting the index to be unchanged. 37% of owners said inflation is their single most important problem, up 3% from June and the highest level since Q4 1979. NFIB\u2019s Chief Economist said, “The uncertainty in the small-business sector is climbing again as owners continue to manage historic inflation, labor shortages, and supply chain disruptions.\u201d<\/p>\n","protected":false},"author":41,"featured_media":63404,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63399","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\/63399","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=63399"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63399\/revisions"}],"predecessor-version":[{"id":63412,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63399\/revisions\/63412"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63404"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}