{"id":63483,"date":"2022-08-17T09:02:11","date_gmt":"2022-08-17T13:02:11","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63483"},"modified":"2022-08-17T09:03:01","modified_gmt":"2022-08-17T13:03:01","slug":"coffee-with-greta-retail-sales-fall-flat-as-gas-prices-drop","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/17\/coffee-with-greta-retail-sales-fall-flat-as-gas-prices-drop\/","title":{"rendered":"Coffee With Greta: Retail Sales Fall Flat as Gas Prices Drop"},"content":{"rendered":"

DJIA Futures: <\/b>-211 (-0.6%)<\/span><\/p>\n

SPX Futures: <\/b>-34 (-0.8%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-115 (-0.8%)<\/span><\/p>\n

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

Futures are falling after July retail sales missed expectations and Target reported a sharp drop in profits.<\/span><\/p>\n

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

Retail Sales Fall Flat in July<\/span><\/h2>\n

U.S. retail sales were flat in July as gas prices fell and auto sales dropped.\u00a0<\/span><\/p>\n

The Commerce Department reported retail sales were unchanged last month at $682.8 billion.\u00a0<\/span><\/p>\n

That missed economists\u2019 expectations for sales to rise 0.1%.<\/span><\/p>\n

The flat sales came as gas station receipts tumbled 1.8% and car sales dropped 1.7%.<\/span><\/p>\n

Excluding autos, core retail sales rose 0.4% vs expectations for no change.\u00a0<\/span><\/p>\n

That was driven by a strong 2.7% gain in online sales \u2013 boosted by Amazon Prime day \u2013 and a 1.5% gain at miscellaneous stores.<\/span><\/p>\n

Target Drops as Profits Plunge<\/span><\/h2>\n

Target <\/b>(TGT) shares are down 2.9% ahead of the open after missing profit expectations in the second quarter.\u00a0<\/span><\/p>\n

The retailer reported earnings of $0.39 per share on $26.04 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for EPS of $0.72 but was in line with sales estimates.\u00a0<\/span><\/p>\n

Profit was down 90% year-over-year and the CFO blamed that plunge on Target\u2019s aggressive efforts to reduce inventory.\u00a0<\/span><\/p>\n

He said, \u201cIf we hadn\u2019t dealt with our excess inventory head-on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential. While our quarterly profit took a meaningful step down, our future path is brighter.\u201d<\/span><\/p>\n

The company reiterated its full-year forecast, saying it\u2019s now positioned for a rebound after reducing extra inventory.\u00a0<\/span><\/p>\n

Lowe\u2019s Reports Mixed Q2 Results<\/span><\/h2>\n

Lowe\u2019s <\/b>(LOW) shares are up 1.1% in premarket trade after mixed Q2 earnings.\u00a0<\/span><\/p>\n

The home improvement retailer reported adjusted earnings of $4.67 per share on $27.48 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for EPS of $4.58 but fell short of revenue estimates for $28.12 billion.<\/span><\/p>\n

Comparable sales fell 0.3% year over year but home improvement sales rose 0.2%.<\/span><\/p>\n

The CEO said the home improvement consumer remained healthy in the quarter.\u00a0<\/span><\/p>\n

\u201cRather than the DIY consumer trading down like you hear from some retailers, in many cases we were seeing the opposite,\u201d he told <\/span>CNBC<\/span><\/a>. \u201cThe customer\u2019s actually trading up to innovation and trading up for new.\u201d<\/span><\/p>\n

Lowe\u2019s also saw an increase in sales to professionals thanks to its new loyalty programs.<\/span><\/p>\n

The CEO said they saw double-digit growth in Pro sales for the ninth consecutive quarter.<\/span><\/p>\n

The company said it now expects full-year total and comparable sales toward the bottom of its previous outlook range while earnings are expected to be at the top end.<\/span><\/p>\n

Meme Stock Rally Continues<\/span><\/h2>\n

Bed Bath & Beyond <\/b>(BBBY) shares are surging 37.9% ahead of the open after surging 29.1% on Tuesday.\u00a0<\/span><\/p>\n

The recent jump comes after a regulatory filing showed <\/span>GameStop <\/b>(GME) Ryan Cohen purchased call options on BBBY through his venture capital firm.<\/span><\/p>\n

Retail traders poured into the stock, with shares soaring as much as 70% on Tuesday.\u00a0<\/span><\/p>\n

Cohen purchased call options on more than 1.6 million Bed Bath & Beyond shares with strike prices between $60 and $80.\u00a0<\/span><\/p>\n

The options expire in January 2023.\u00a0\u00a0<\/span><\/p>\n

That means Cohen is betting the stock can rise as high as $80 by that time.\u00a0<\/span><\/p>\n

BBBY closed at $20.65 per share on Tuesday.<\/span><\/p>\n

Oil Prices Fall to 6-Month Low<\/span><\/h2>\n

Oil prices are hovering around 6-month lows today as recession fears weigh on the market.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are flat at $86.50 bbl while Brent crude futures are down 0.4% at $92 bbl.<\/span><\/p>\n

The fears of a global recession are outweighing new data that showed a drop in U.S. crude and gasoline stocks.<\/span><\/p>\n

The American Petroleum Institute reported Tuesday that U.S. crude inventories fell by 448,000 barrels last week vs expectations for a 117,000 barrel drop.\u00a0<\/span><\/p>\n

Gasoline stockpiles fell by 4.48 million barrels.<\/span><\/p>\n

The Energy Information Administration reports official supply levels today. <\/span>
\n<\/span>
\n<\/span>Analysts expect the EIA to show both crude and gasoline inventories fell by 1.7 million barrels last week.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • President Biden signed the $437 billion Inflation Reduction Act into law Tuesday afternoon. The tax, health, and climate legislation accomplishes several agenda items laid out in his Build Back Better plan. The bill imposes a 15% minimum corporate tax rate and includes $369 billion in funding for climate and energy policies. The legislation was approved along party lines in both chambers of Congress.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: -211 (-0.6%) SPX Futures: -34 (-0.8%) NASDAQ Futures: -115 (-0.8%) Good morning friends! Futures are falling after July retail sales missed expectations and Target reported a sharp drop in profits. Let\u2019s get right to it! Retail Sales Fall Flat in July U.S. retail sales were flat in July as gas prices fell and auto sales dropped.\u00a0 The Commerce Department reported retail sales were unchanged last month at $682.8 billion.\u00a0 That missed economists\u2019 expectations for sales to rise 0.1%. The flat sales came as gas station receipts tumbled 1.8% and car sales dropped 1.7%. Excluding autos, core retail sales rose 0.4% vs expectations for no change.\u00a0 That was driven by a strong 2.7% gain in online sales \u2013 boosted by Amazon Prime day \u2013 and a 1.5% gain at miscellaneous stores. Target Drops as Profits Plunge Target (TGT) shares are down 2.9% ahead of the open after missing profit expectations in the second quarter.\u00a0 The retailer reported earnings of $0.39 per share on $26.04 billion in revenue.\u00a0 That missed analysts\u2019 expectations for EPS of $0.72 but was in line with sales estimates.\u00a0 Profit was down 90% year-over-year and the CFO blamed that plunge on Target\u2019s aggressive efforts to reduce inventory.\u00a0 He said, \u201cIf we hadn\u2019t dealt with our excess inventory head-on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential. While our quarterly profit took a meaningful step down, our future path is brighter.\u201d The company reiterated its full-year forecast, saying it\u2019s now positioned for a rebound after reducing extra inventory.\u00a0 Lowe\u2019s Reports Mixed Q2 Results Lowe\u2019s (LOW) shares are up 1.1% in premarket trade after mixed Q2 earnings.\u00a0 The home improvement retailer reported adjusted earnings of $4.67 per share on $27.48 billion in revenue.\u00a0 That topped analysts\u2019 expectations for EPS of $4.58 but fell short of revenue estimates for $28.12 billion. Comparable sales fell 0.3% year over year but home improvement sales rose 0.2%. The CEO said the home improvement consumer remained healthy in the quarter.\u00a0 \u201cRather than the DIY consumer trading down like you hear from some retailers, in many cases we were seeing the opposite,\u201d he told CNBC. \u201cThe customer\u2019s actually trading up to innovation and trading up for new.\u201d Lowe\u2019s also saw an increase in sales to professionals thanks to its new loyalty programs. The CEO said they saw double-digit growth in Pro sales for the ninth consecutive quarter. The company said it now expects full-year total and comparable sales toward the bottom of its previous outlook range while earnings are expected to be at the top end. Meme Stock Rally Continues Bed Bath & Beyond (BBBY) shares are surging 37.9% ahead of the open after surging 29.1% on Tuesday.\u00a0 The recent jump comes after a regulatory filing showed GameStop (GME) Ryan Cohen purchased call options on BBBY through his venture capital firm. Retail traders poured into the stock, with shares soaring as much as 70% on Tuesday.\u00a0 Cohen purchased call options on more than 1.6 million Bed Bath & Beyond shares with strike prices between $60 and $80.\u00a0 The options expire in January 2023.\u00a0\u00a0 That means Cohen is betting the stock can rise as high as $80 by that time.\u00a0 BBBY closed at $20.65 per share on Tuesday. Oil Prices Fall to 6-Month Low Oil prices are hovering around 6-month lows today as recession fears weigh on the market.\u00a0 West Texas Intermediate crude futures are flat at $86.50 bbl while Brent crude futures are down 0.4% at $92 bbl. The fears of a global recession are outweighing new data that showed a drop in U.S. crude and gasoline stocks. The American Petroleum Institute reported Tuesday that U.S. crude inventories fell by 448,000 barrels last week vs expectations for a 117,000 barrel drop.\u00a0 Gasoline stockpiles fell by 4.48 million barrels. The Energy Information Administration reports official supply levels today. Analysts expect the EIA to show both crude and gasoline inventories fell by 1.7 million barrels last week. In Case You Missed It President Biden signed the $437 billion Inflation Reduction Act into law Tuesday afternoon. The tax, health, and climate legislation accomplishes several agenda items laid out in his Build Back Better plan. The bill imposes a 15% minimum corporate tax rate and includes $369 billion in funding for climate and energy policies. The legislation was approved along party lines in both chambers of Congress.<\/p>\n","protected":false},"author":41,"featured_media":63486,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-63483","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\/63483","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=63483"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63483\/revisions"}],"predecessor-version":[{"id":63487,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/63483\/revisions\/63487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/63486"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=63483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=63483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=63483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}