{"id":64771,"date":"2022-11-02T09:01:35","date_gmt":"2022-11-02T13:01:35","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=64771"},"modified":"2022-11-02T09:01:35","modified_gmt":"2022-11-02T13:01:35","slug":"coffee-with-greta-too-many-jobs-for-the-fed","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/11\/02\/coffee-with-greta-too-many-jobs-for-the-fed\/","title":{"rendered":"Coffee With Greta: Too Many Jobs for the Fed"},"content":{"rendered":"

DJIA Futures: <\/b>-97 (-0.3%)<\/span><\/p>\n

SPX Futures: <\/b>-8 (-0.2%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-11 (-0.1%)<\/span><\/p>\n

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

Futures are slipping as traders digest new labor market data and look ahead to today\u2019s Fed decision.<\/span><\/p>\n

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

Private Job Growth Comes in Hot<\/span><\/h2>\n

Private employers in the U.S. added more jobs than expected in October.\u00a0<\/span><\/p>\n

Payroll firm ADP reported today the U.S. private sector added 239,000 jobs last month vs expectations for just 195,000.<\/span><\/p>\n

That was up from the downwardly revised 192,000 in September.\u00a0<\/span><\/p>\n

The leisure and hospitality sector saw the strongest growth, adding 210,000 jobs.<\/span><\/p>\n

The report showed wages jumped 7.7% year over year in October<\/span><\/p>\n

This data comes a day after the Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) came in hot.\u00a0<\/span><\/p>\n

That survey showed the number of job openings jumped to 10.7 million in September from a revised 10.3 million in August.\u00a0<\/span><\/p>\n

That was higher than economists\u2019 expectations for a decline to 9.85 million and is bad news for the Fed as it works to cool the hot labor market.\u00a0<\/span><\/p>\n

The official October jobs report on Friday is expected to show the U.S. economy added 205,000 jobs with the unemployment rate unchanged at 3.5%.<\/span><\/p>\n

Fed Decision Day<\/span><\/h2>\n

Stocks are slipping ahead of the Fed\u2019s latest interest rate hike.<\/span><\/p>\n

The Central Bank releases that decision at 2:00 p.m. ET.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch Tool<\/span><\/a> shows 92.2% of traders expecting another 75 basis point hike, which is in line with the Fed\u2019s dot plot.<\/span><\/p>\n

But the market is more focused on what the bank says about the future.\u00a0<\/span><\/p>\n

FedWatch shows 47.7% of traders expecting the Fed to pivot to a 50bps hike in December, with 48.7% anticipating another 75bps move.<\/span><\/p>\n

AMD Rallies Despite Q3 Miss<\/span><\/h2>\n

Advanced Micro Devices <\/b>(AMD) shares are up 5.4% ahead of the open despite missing Q3 expectations.\u00a0<\/span><\/p>\n

Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

    \n
  • Adjusted EPS: $0.67 vs $0.68 expected<\/span><\/li>\n
  • Revenue: $5.57 billion vs $5.62 billion expected<\/span><\/li>\n<\/ul>\n

    Revenue was up 29% year over year but even weaker than AMD\u2019s preliminary results from early October.\u00a0<\/span><\/p>\n

    The chipmaker forecast $23.5 billion in full-year revenue, down from $26.3 billion previously and lower than analysts\u2019 expectations for $23.88 billion.\u00a0<\/span><\/p>\n

    Airbnb Slides On Guidance<\/span><\/h2>\n

    Airbnb <\/b>(ABNB) shares are down 4.9% in premarket trade despite beating Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

      \n
    • EPS: $1.79 vs $1.47 expected<\/span><\/li>\n
    • Revenue: $2.88 billion vs $2.85 billion expected<\/span><\/li>\n
    • Gross bookings: $15.6 billion vs $15.37 billion expected<\/span><\/li>\n<\/ul>\n

      Airbnb\u2019s adjusted EBITDA hit a record high $1.5 billion in the quarter.\u00a0<\/span><\/p>\n

      But the company forecast lower revenue in Q4, \u201cconsistent with historical seasonality\u201d.\u00a0<\/span><\/p>\n

      Airbnb expects revenue between $1.8 billion and $1.88 billion next quarter, in line with estimates of $1.87 billion.\u00a0<\/span><\/p>\n

      CVS Hikes Outlook<\/span><\/h2>\n

      CVS <\/b>(CVS) shares are up 1.4% ahead of the open after beating Q3 estimates and hiking its outlook.<\/span>
      \n<\/span>
      \n<\/span>Here\u2019s how the pharmacy giant\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

        \n
      • EPS: $2.09 vs $1.99 expected<\/span><\/li>\n
      • Revenue: $81.16 billion vs $76.75 billion expected<\/span><\/li>\n<\/ul>\n

        Revenue was up 10% year over year and that marked the 3rd straight quarter CVS has beat profit expectations.\u00a0<\/span><\/p>\n

        The company raised its full-year outlook following the beat.\u00a0<\/span><\/p>\n

        CVS now expects adjusted EPS between $8.55 and $8.65, up from $8.40 to $8.60 previously.\u00a0<\/span><\/p>\n

        Mortgage Demand Slides Further<\/span><\/h2>\n

        U.S. mortgage demand fell last week despite rates dropping for the first time in 2 months.<\/span><\/p>\n

        The Mortgage Bankers Association reported overall application volume slipped 0.5%.\u00a0<\/span><\/p>\n

        Purchase applications fell 1% weekly and were down 41% year over year.\u00a0<\/span><\/p>\n

        Refinance applications rose 0.2% weekly but were down 85% compared to a year ago.\u00a0<\/span><\/p>\n

        The average 30-year contract rate decreased to 7.06% from 7.16% the previous week.\u00a0<\/span><\/p>\n

        That\u2019s the first decline in 2 months but still hovering near a 22-year high.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        DJIA Futures: -97 (-0.3%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -11 (-0.1%) Good morning friends! Futures are slipping as traders digest new labor market data and look ahead to today\u2019s Fed decision. Let\u2019s get right to it! Private Job Growth Comes in Hot Private employers in the U.S. added more jobs than expected in October.\u00a0 Payroll firm ADP reported today the U.S. private sector added 239,000 jobs last month vs expectations for just 195,000. That was up from the downwardly revised 192,000 in September.\u00a0 The leisure and hospitality sector saw the strongest growth, adding 210,000 jobs. The report showed wages jumped 7.7% year over year in October This data comes a day after the Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) came in hot.\u00a0 That survey showed the number of job openings jumped to 10.7 million in September from a revised 10.3 million in August.\u00a0 That was higher than economists\u2019 expectations for a decline to 9.85 million and is bad news for the Fed as it works to cool the hot labor market.\u00a0 The official October jobs report on Friday is expected to show the U.S. economy added 205,000 jobs with the unemployment rate unchanged at 3.5%. Fed Decision Day Stocks are slipping ahead of the Fed\u2019s latest interest rate hike. The Central Bank releases that decision at 2:00 p.m. ET.\u00a0 CME Group\u2019s FedWatch Tool shows 92.2% of traders expecting another 75 basis point hike, which is in line with the Fed\u2019s dot plot. But the market is more focused on what the bank says about the future.\u00a0 FedWatch shows 47.7% of traders expecting the Fed to pivot to a 50bps hike in December, with 48.7% anticipating another 75bps move. AMD Rallies Despite Q3 Miss Advanced Micro Devices (AMD) shares are up 5.4% ahead of the open despite missing Q3 expectations.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.67 vs $0.68 expected Revenue: $5.57 billion vs $5.62 billion expected Revenue was up 29% year over year but even weaker than AMD\u2019s preliminary results from early October.\u00a0 The chipmaker forecast $23.5 billion in full-year revenue, down from $26.3 billion previously and lower than analysts\u2019 expectations for $23.88 billion.\u00a0 Airbnb Slides On Guidance Airbnb (ABNB) shares are down 4.9% in premarket trade despite beating Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 expectations: EPS: $1.79 vs $1.47 expected Revenue: $2.88 billion vs $2.85 billion expected Gross bookings: $15.6 billion vs $15.37 billion expected Airbnb\u2019s adjusted EBITDA hit a record high $1.5 billion in the quarter.\u00a0 But the company forecast lower revenue in Q4, \u201cconsistent with historical seasonality\u201d.\u00a0 Airbnb expects revenue between $1.8 billion and $1.88 billion next quarter, in line with estimates of $1.87 billion.\u00a0 CVS Hikes Outlook CVS (CVS) shares are up 1.4% ahead of the open after beating Q3 estimates and hiking its outlook. Here\u2019s how the pharmacy giant\u2019s results compared to analysts\u2019 estimates: EPS: $2.09 vs $1.99 expected Revenue: $81.16 billion vs $76.75 billion expected Revenue was up 10% year over year and that marked the 3rd straight quarter CVS has beat profit expectations.\u00a0 The company raised its full-year outlook following the beat.\u00a0 CVS now expects adjusted EPS between $8.55 and $8.65, up from $8.40 to $8.60 previously.\u00a0 Mortgage Demand Slides Further U.S. mortgage demand fell last week despite rates dropping for the first time in 2 months. The Mortgage Bankers Association reported overall application volume slipped 0.5%.\u00a0 Purchase applications fell 1% weekly and were down 41% year over year.\u00a0 Refinance applications rose 0.2% weekly but were down 85% compared to a year ago.\u00a0 The average 30-year contract rate decreased to 7.06% from 7.16% the previous week.\u00a0 That\u2019s the first decline in 2 months but still hovering near a 22-year high.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":64779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-64771","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\/64771","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=64771"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64771\/revisions"}],"predecessor-version":[{"id":64780,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/64771\/revisions\/64780"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/64779"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=64771"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=64771"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=64771"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}