{"id":63534,"date":"2022-08-25T08:54:31","date_gmt":"2022-08-25T12:54:31","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63534"},"modified":"2022-08-25T08:54:31","modified_gmt":"2022-08-25T12:54:31","slug":"coffee-with-greta-positive-economic-data-boosts-stocks","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/25\/coffee-with-greta-positive-economic-data-boosts-stocks\/","title":{"rendered":"Coffee With Greta: Positive Economic Data Boosts Stocks"},"content":{"rendered":"

DJIA Futures: <\/b>+52 (+0.2%)<\/span><\/p>\n

SPX Futures: <\/b>+18 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+68 (+0.5%)<\/span><\/p>\n

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

Futures are higher after the release of some positive economic data.<\/span><\/p>\n

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

Q2 GDP Contraction Revised Lower<\/span><\/h2>\n

The Commerce Department\u2019s second estimate shows the U.S. economy contracted at an annual rate of 0.6% in Q2.\u00a0<\/span><\/p>\n

That was an improvement from the first estimate which showed the economy shrank 0.9% annually.<\/span><\/p>\n

The change comes as consumer spending was revised to show a 1.5% gain vs the prior estimate of 1%.<\/span><\/p>\n

It was still the second-straight quarterly decline in GDP after the 1.6% contraction in Q1.<\/span><\/p>\n

Weekly Jobless Claims Fall to One-Month Low<\/span><\/h2>\n

Weekly jobless claims fell to a one-month low last week, showing no signs of surging layoffs.\u00a0<\/span><\/p>\n

The Labor Department reported 243,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

That was down 2,000 from the previous week\u2019s revised level and better than expectations for claims to rise to 255,000.<\/span><\/p>\n

Continuing claims fell by 10,000 to 1.42 million in the week ending August 13.<\/span><\/p>\n

Peloton Plunges On Big Fiscal Q4 Loss<\/span><\/h2>\n

Peloton <\/b>(PTON) shares are plunging 14.9% in premarket trade after reporting a steeper loss than expected in its fiscal fourth quarter.\u00a0<\/span><\/p>\n

The connected fitness equipment maker reported a loss of $3.68 per share on $679 million in revenue.\u00a0<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $0.76 per share on $682 million in revenue.\u00a0<\/span><\/p>\n

The CEO said $415 million of the $1.2 billion operating loss was related to restructuring charges.\u00a0<\/span><\/p>\n

He said, \u201cThe loss reflects the substantial progress we made this last quarter re-architecting the business to reduce the current and future inventory overhang, converting fixed to variable costs, and addressing numerous supply chain issue.\u201d<\/span>
\n<\/span>
\n<\/span>It was Peloton\u2019s 6th consecutive quarterly loss but the company said it\u2019s aiming to reach breakeven cash flow by the second half of fiscal 2023.<\/span><\/p>\n

Nvidia Tumbles on Weak Outlook<\/span><\/h2>\n

Nvidia <\/b>(NVDA) shares are dropping 3% ahead of the open after weak Q2 earnings and guidance.\u00a0<\/span><\/p>\n

The chipmaker reported adjusted earnings of $0.51 per share on $6.7 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for adjusted EPS of $1.26 on $8.10 billion in revenue but was in line with Nvidia\u2019s preliminary results two weeks ago.\u00a0<\/span><\/p>\n

Revenue in the gaming department plunged 33% year over year which the CFO blamed on \u201cmacroeconomic headwinds across the world\u201d.<\/span><\/p>\n

Nvidia forecast $5.9 billion in sales in Q3 vs analysts\u2019 estimates of $6.95 billion.<\/span><\/p>\n

Salesforce Guidance Comes Up Short<\/span><\/h2>\n

Salesforce <\/b>(CRM) shares are falling 8.1% in premarket trade after beating fiscal Q2 expectations but giving a disappointing forecast for the remainder of the year.<\/span><\/p>\n

The software company reported adjusted earnings of $1.19 per share on $7.72 billion in revenue.<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $1.02 on $7.69 billion in revenue.<\/span><\/p>\n

Salesforce called for adjusted earnings of $1.20 to $1.21 per share in fiscal Q3 on revenue between $7.82 billion and $7.83 billion.\u00a0<\/span><\/p>\n

Analysts were estimating fiscal Q3 adjusted EPS of $1.29 on $8.07 billion in revenue.\u00a0<\/span><\/p>\n

The company also cut its full-year outlook, calling for EPS between $4.71 and $4.73 and $30.9 billion to $31 billion in revenue.\u00a0<\/span><\/p>\n

That\u2019s down from its previous forecast for EPS of $4.74 to $4.76 on $31.7 billion to $31.8 billion in revenue.<\/span><\/p>\n

Tesla Stock Split Takes Effect<\/span><\/h2>\n

Tesla <\/b>(TSLA) shares are up 1.6% ahead of the open as the automaker\u2019s 3-for-1 stock split takes effect.\u00a0<\/span><\/p>\n

The stock is trading just above $300 per share on a split-adjusted basis.\u00a0<\/span><\/p>\n

Tesla\u2019s board of directors approved the split on August 5.\u00a0<\/span><\/p>\n

The company said it would provide more flexibility for employees managing their equity and would serve as a recruiting tool.\u00a0<\/span><\/p>\n

This is Tesla\u2019s second stock split in 2 years.<\/span><\/p>\n

The stock has gained about 104% since the 5-for-1 split in August 2020.\u00a0<\/span><\/p>\n

Oil Prices Hold Steady<\/span><\/h2>\n

Oil prices are mixed today as uncertainty continues over whether OPEC+ will cut production and the prospect of Iranian oil returning to the market.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 0.1% at $95 bbl while Brent crude futures are up 0.4% at $101.60 bbl.<\/span><\/p>\n

Talks are continuing between the EU, U.S., and Iran to revive the 2015 nuclear deal.\u00a0<\/span><\/p>\n

Falling U.S. inventories are also putting upward pressure on prices.\u00a0<\/span><\/p>\n

The Energy Information Administration reported a 3.3 million barrel drop in crude stockpiles last week vs a 933,000 barrel decline expected.\u00a0<\/span><\/p>\n

Gasoline inventories fell by 27,000 barrels vs expectations for a 1.5 million barrel drop.<\/span><\/p>\n

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