{"id":63515,"date":"2022-08-24T08:56:08","date_gmt":"2022-08-24T12:56:08","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63515"},"modified":"2022-08-24T08:56:08","modified_gmt":"2022-08-24T12:56:08","slug":"coffee-with-greta-nordstrom-plunges-on-weak-outlook","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/24\/coffee-with-greta-nordstrom-plunges-on-weak-outlook\/","title":{"rendered":"Coffee With Greta: Nordstrom Plunges on Weak Outlook"},"content":{"rendered":"

DJIA Futures: <\/b>-25 (-0.1%)<\/span><\/p>\n

SPX Futures: <\/b>+1 (+0.02%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+1 (+0.01%)<\/span><\/p>\n

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

Futures are flat as the market continues to struggle.\u00a0<\/span><\/p>\n

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

Nordstrom Drops After Slashing Forecast<\/span><\/h2>\n

Nordstrom <\/b>(JWN) shares are tumbling 12.7% ahead of the open after cutting its full-year outlook despite beating Q2 expectations.\u00a0<\/span><\/p>\n

The retailer reported adjusted earnings of $0.81 per share on $4.1 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $0.80 on $3.97 billion in revenue.\u00a0<\/span><\/p>\n

Nordstrom now expects annual sales growth of 5% to 7%, down from its previous forecast for 6% to 8% growth.\u00a0<\/span><\/p>\n

The company called for full-year adjusted EPS between $2.30 and $2.60, down from $3.20 to $3.50.\u00a0<\/span><\/p>\n

The CEO said, \u201cCustomer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack. We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends.\u201d<\/span><\/p>\n

Peloton Rallies on Amazon Deal<\/span><\/h2>\n

Peloton <\/b>(PTON) shares are rallying 7.5% in premarket trade after reaching a deal to sell its fitness equipment and apparel on <\/span>Amazon <\/b>(AMZN).<\/span><\/p>\n

The items now sold on Amazon include the original Peloton Bike and its strength product the Peloton Guide.<\/span><\/p>\n

The Bike+ and Tread will not be sold on the site.\u00a0<\/span><\/p>\n

This is Peloton\u2019s first-ever partnership with another retailer to sell its products.<\/span><\/p>\n

The company\u2019s cycling shoes, bike mat, weights, yoga blocks, water bottle, and heart rate armband will also be on Amazon.<\/span><\/p>\n

The branded apparel sold on the site will include sports bras, leggings, shorts, tank tops, hats, and joggers.<\/span><\/p>\n

The Chief Commercial Officer said, \u201cThis is a really good start for us, with a digital retailer, to test the waters.\u201d<\/span><\/p>\n

Mortgage Demand Slips, First-Time Buyers Return<\/span><\/h2>\n

Mortgage demand is continuing to weaken amid higher rates but the latest data shows first-time buyers returning to the market.\u00a0<\/span><\/p>\n

New data from the Mortgage Bankers Association shows purchase applications fell 1% last week and were down 21% year over year.\u00a0<\/span><\/p>\n

But there was a jump in demand for loans with lower down payments, which are typically used by first-time homebuyers.\u00a0<\/span><\/p>\n

Conventional applications fell 2% while government applications increased 4%.\u00a0<\/span><\/p>\n

Refinance applications dropped 3% weekly and plunged 83% annually.\u00a0<\/span><\/p>\n

The drop came as rates moved higher.\u00a0<\/span><\/p>\n

The average 30-year contract fixed rate rose to 5.65% from 5.45% the previous week.<\/span><\/p>\n

Market Split on Next Fed Rate Hike\u00a0<\/span><\/h2>\n

The market is split on their expectations for the next Fed rate hike amid increasing signs the U.S. economy is slowing.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 43.5% of traders expect the bank to pivot to a 0.5% hike.\u00a0<\/span><\/p>\n

While 56.5% are expecting the Fed to stick with a 0.75% rate hike.\u00a0<\/span><\/p>\n

The market is looking for more clarity from Fed Chair Jerome Powell who is set to speak at the Jackson Hole Symposium Friday morning.\u00a0<\/span><\/p>\n

Biden\u2019s Decision On Student Loan Forgiveness Expected Today<\/span><\/h2>\n

President Biden is expected to make a decision on student loan forgiveness as early as today.\u00a0<\/span><\/p>\n

The White House is facing an end-of-August deadline when the current student loan forbearance program expires.\u00a0<\/span><\/p>\n

Biden has been under pressure to forgive some loans not just pause payments.\u00a0<\/span><\/p>\n

Three sources told NBC News that he plans to extend forbearance again and forgive loans up to $10,000 for those making less than $125,000 per year.\u00a0<\/span><\/p>\n

The White House refused to comment on those reports.<\/span><\/p>\n

Oil Prices Climb<\/span><\/h2>\n

Oil prices are climbing again today amid continued talks about OPEC+ cutting production.<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.7% to over $94 bbl while Brent crude futures are up 0.8% to $101 bbl.<\/span><\/p>\n

The American Petroleum Institute also reported another drop in U.S. inventories.<\/span><\/p>\n

The API report showed crude stockpiles fell by 5.6 million barrels last week, sharply higher than analysts\u2019 expectations for a 900,000 barrel decline.<\/span><\/p>\n

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

In Case You Missed It<\/span><\/h2>\n