{"id":64056,"date":"2022-09-30T09:04:24","date_gmt":"2022-09-30T13:04:24","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64056"},"modified":"2022-09-30T09:04:39","modified_gmt":"2022-09-30T13:04:39","slug":"coffee-with-greta-feds-fave-inflation-gauge-comes-in-hot","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/09\/30\/coffee-with-greta-feds-fave-inflation-gauge-comes-in-hot\/","title":{"rendered":"Coffee With Greta: Fed\u2019s Fave Inflation Gauge Comes in Hot"},"content":{"rendered":"

DJIA Futures: <\/b>+7 (+0.02%)<\/span><\/p>\n

SPX Futures: <\/b>+5 (+0.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+8 (+0.1%)<\/span><\/p>\n

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

Futures are swinging between positive and negative territory as traders gear up for the final day of Q3.<\/span><\/p>\n

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

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

Another hot inflation reading is not what the Fed wants to see.<\/span><\/p>\n

The Bureau of Economic Analysis\u2019 personal consumption expenditures (PCE) price index rose 0.3% monthly and 6.2% year over year in August.\u00a0<\/span><\/p>\n

That was up from the -0.1% monthly reading in July but a slowdown from 6.4% annually.<\/span><\/p>\n

The core PCE price index, which excludes food and energy and is the Fed\u2019s preferred measure, rose 0.6% monthly and 4.9% annually.\u00a0<\/span><\/p>\n

That was also up from 0.1% monthly and 4.7% annually in July.\u00a0<\/span><\/p>\n

The jump in core inflation pressures shows rising prices extending past just oil, gas, and food.<\/span><\/p>\n

Treasury Yields Slip\u00a0<\/span><\/h2>\n

Treasury yields are slipping this morning as stocks try to rebound.\u00a0<\/span><\/p>\n

The 2-year yield is down 4 basis points to 4.18% while the 10-year yield is off 8 basis points to 3.71%.\u00a0<\/span><\/p>\n

Bonds have seen a volatile week alongside stocks as the market remains on edge about the Fed\u2019s plans to continue aggressive rate hikes.\u00a0<\/span><\/p>\n

Several more Fed officials are set to give speeches today including the Richmond and New York Fed Presidents, as well as Fed Vice Chair Lael Brainard.<\/span><\/p>\n

Eurozone Inflation Jumps to Record High<\/span><\/h2>\n

New data from Eurostat shows inflation jumped to a record high of 10% across Europe in December.\u00a0<\/span><\/p>\n

That\u2019s up from 9.1% in August and higher than 9.7% expected.\u00a0<\/span><\/p>\n

Nearly all segments of the economy saw increases in prices.\u00a0<\/span><\/p>\n

Energy prices soared 40.8% year over year vs 38.6% in August.\u00a0<\/span><\/p>\n

Food and alcohol prices saw the second largest increase at 11.8% vs 10.6% in August.\u00a0<\/span><\/p>\n

Core inflation rose just 4.8% annually, up from 4.3% the prior month.\u00a0<\/span><\/p>\n

This new data increases pressure on the European Central Bank to hike rates aggressively at its meeting in October.<\/span><\/p>\n

Nike Drops As Supply Chain and Inventory Issues Weigh on Earnings<\/span><\/h2>\n

Nike <\/b>(NKE) shares are down 12.3% ahead of the open despite topping fiscal Q1 expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the sneaker giant\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • EPS: $0.93 vs $0.92 expected<\/span><\/li>\n
  • Revenue: $12.69 billion vs $12.27 billion expected<\/span><\/li>\n<\/ul>\n

    Earnings were down 22% year over year while revenue rose 4%.<\/span><\/p>\n

    Sales in China dropped 16% compared to a year ago while sales in North America increased 13%.\u00a0<\/span><\/p>\n

    The company continued to struggle with supply chain issues like higher shipping costs and longer shipping times.\u00a0<\/span><\/p>\n

    That caused inventory on its balance sheet to swell 44% to $9.7 billion.\u00a0<\/span><\/p>\n

    The company said it will offer more discounts this holiday season in an effort to reduce those inventory levels.<\/span><\/p>\n

    Nike said its direct sales grew by 8% in the quarter and its digital-brand sales rose 16%.\u00a0<\/span><\/p>\n

    The company has been focusing on selling its products directly to consumers and scaling back on wholesale partners like <\/span>Foot Locker <\/b>(FL).\u00a0<\/span><\/p>\n

    Nike\u2019s wholesale business sales rose by just 1%.\u00a0<\/span><\/p>\n

    Oil on Track for First Quarterly Loss Since 2020<\/span><\/h2>\n

    Oil prices are mixed this morning but on track to post their first quarterly loss since 2020.\u00a0<\/span><\/p>\n

    West Texas Intermediate crude futures are down 0.5% to under $81 bbl while Brent crude futures are up 0.1% to under $89 bbl.\u00a0<\/span><\/p>\n

    The market is looking ahead to next week\u2019s OPEC+ meeting.\u00a0<\/span><\/p>\n

    The group is expected to discuss cutting its output in order to support prices that have been hit by lower demand.\u00a0<\/span><\/p>\n

    OPEC+ is said to be considered a 500,000 barrel per day reduction to production.<\/span><\/p>\n

    In Case You Missed It<\/span><\/h2>\n
      \n
    • Apple <\/b>(AAPL) shares tumbled 4.9% on Thursday after the stock got hit with a rare analyst downgrade. Bank of America analysts downgraded the stock from buy to neutral and cut the price target to $160 from $185 per share. The group said they anticipate \u201cweaker consumer demand\u201d over the next year. The drop prompted a broader tech sell-off with <\/span>Alphabet <\/b>(GOOGL) and <\/span>Microsoft <\/b>(MSFT) both hitting fresh 52-week lows.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

      DJIA Futures: +7 (+0.02%) SPX Futures: +5 (+0.1%) NASDAQ Futures: +8 (+0.1%) Good morning friends! Futures are swinging between positive and negative territory as traders gear up for the final day of Q3. Let\u2019s get right to it! PCE Inflation Pushes Higher in August Another hot inflation reading is not what the Fed wants to see. The Bureau of Economic Analysis\u2019 personal consumption expenditures (PCE) price index rose 0.3% monthly and 6.2% year over year in August.\u00a0 That was up from the -0.1% monthly reading in July but a slowdown from 6.4% annually. The core PCE price index, which excludes food and energy and is the Fed\u2019s preferred measure, rose 0.6% monthly and 4.9% annually.\u00a0 That was also up from 0.1% monthly and 4.7% annually in July.\u00a0 The jump in core inflation pressures shows rising prices extending past just oil, gas, and food. Treasury Yields Slip\u00a0 Treasury yields are slipping this morning as stocks try to rebound.\u00a0 The 2-year yield is down 4 basis points to 4.18% while the 10-year yield is off 8 basis points to 3.71%.\u00a0 Bonds have seen a volatile week alongside stocks as the market remains on edge about the Fed\u2019s plans to continue aggressive rate hikes.\u00a0 Several more Fed officials are set to give speeches today including the Richmond and New York Fed Presidents, as well as Fed Vice Chair Lael Brainard. Eurozone Inflation Jumps to Record High New data from Eurostat shows inflation jumped to a record high of 10% across Europe in December.\u00a0 That\u2019s up from 9.1% in August and higher than 9.7% expected.\u00a0 Nearly all segments of the economy saw increases in prices.\u00a0 Energy prices soared 40.8% year over year vs 38.6% in August.\u00a0 Food and alcohol prices saw the second largest increase at 11.8% vs 10.6% in August.\u00a0 Core inflation rose just 4.8% annually, up from 4.3% the prior month.\u00a0 This new data increases pressure on the European Central Bank to hike rates aggressively at its meeting in October. Nike Drops As Supply Chain and Inventory Issues Weigh on Earnings Nike (NKE) shares are down 12.3% ahead of the open despite topping fiscal Q1 expectations.\u00a0 Here\u2019s how the sneaker giant\u2019s results compared to analysts\u2019 expectations: EPS: $0.93 vs $0.92 expected Revenue: $12.69 billion vs $12.27 billion expected Earnings were down 22% year over year while revenue rose 4%. Sales in China dropped 16% compared to a year ago while sales in North America increased 13%.\u00a0 The company continued to struggle with supply chain issues like higher shipping costs and longer shipping times.\u00a0 That caused inventory on its balance sheet to swell 44% to $9.7 billion.\u00a0 The company said it will offer more discounts this holiday season in an effort to reduce those inventory levels. Nike said its direct sales grew by 8% in the quarter and its digital-brand sales rose 16%.\u00a0 The company has been focusing on selling its products directly to consumers and scaling back on wholesale partners like Foot Locker (FL).\u00a0 Nike\u2019s wholesale business sales rose by just 1%.\u00a0 Oil on Track for First Quarterly Loss Since 2020 Oil prices are mixed this morning but on track to post their first quarterly loss since 2020.\u00a0 West Texas Intermediate crude futures are down 0.5% to under $81 bbl while Brent crude futures are up 0.1% to under $89 bbl.\u00a0 The market is looking ahead to next week\u2019s OPEC+ meeting.\u00a0 The group is expected to discuss cutting its output in order to support prices that have been hit by lower demand.\u00a0 OPEC+ is said to be considered a 500,000 barrel per day reduction to production. In Case You Missed It Apple (AAPL) shares tumbled 4.9% on Thursday after the stock got hit with a rare analyst downgrade. Bank of America analysts downgraded the stock from buy to neutral and cut the price target to $160 from $185 per share. The group said they anticipate \u201cweaker consumer demand\u201d over the next year. The drop prompted a broader tech sell-off with Alphabet (GOOGL) and Microsoft (MSFT) both hitting fresh 52-week lows.<\/p>\n","protected":false},"author":41,"featured_media":64058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64056","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\/64056","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=64056"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64056\/revisions"}],"predecessor-version":[{"id":64061,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64056\/revisions\/64061"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64058"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}