{"id":65408,"date":"2022-12-08T08:55:56","date_gmt":"2022-12-08T13:55:56","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=65408"},"modified":"2022-12-08T09:08:05","modified_gmt":"2022-12-08T14:08:05","slug":"coffee-with-greta-traders-still-assessing-economic-risks","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/12\/08\/coffee-with-greta-traders-still-assessing-economic-risks\/","title":{"rendered":"Coffee With Greta: Traders Still Assessing Economic Risks"},"content":{"rendered":"<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">+151 (+0.5%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">+23 (+0.6%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">+68 (+0.6%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are higher as traders continue to assess the risk of an economic downturn.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">GameStop Reports Steeper Loss, Weaker Sales Than Expected<\/span><\/h2>\n<p><b>GameStop <\/b><span style=\"font-weight: 400;\">(GME) shares are up 0.4% ahead of the open despite reporting weaker-than-expected Q3 results.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the video game retailer\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted loss per share: $0.31 vs $0.28 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $1.186 billion vs $1.345 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Revenue was down 9% year over year and this marked GameStop\u2019s seventh consecutive quarterly loss.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The CEO said the company remains focused on achieving profitability in the near term and growth in the long term.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said, \u201cWe\u2019re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy. The company is a stronger business today than at any time in the recent past.\u201d<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Rent the Runway Sales Jump<\/span><\/h2>\n<p><b>Rent the Runway <\/b><span style=\"font-weight: 400;\">(RENT) shares are rallying 14.8% in premarket trade after reporting strong Q3 sales than expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the fashion rental and subscription company\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Loss per share: $0.56 as expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $77.4 million vs $72.9 million expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Revenue was up 31% year over year while active subscribers jumped 15%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rent the Runway\u2019s CEO told <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/12\/07\/rent-the-runway-rtr-q3-earnings-2022.html\"><span style=\"font-weight: 400;\">CNBC<\/span><\/a><span style=\"font-weight: 400;\"> that inflation is making the company more appealing to customers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She said, \u201cRent the Runway\u2019s business model is fundamentally about delivering an enormous amount of financial value to the consumer. So there\u2019s no other place that the consumer can go to get as much financial value as she receives from our offering.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company forecast Q4 revenue of $72 million to $74 million, higher than analysts\u2019 estimates of $72 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rent the Runway also hiked its full-year revenue forecast to between $293 million and $295 million vs $285 million to $290 million previously.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Weekly Jobless Claims Jump<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Weekly jobless claims rose as expected last week as the U.S. labor market remains relatively stable.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Labor Department reported 230,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That was up by 4,000 from the previous week and in line with economists\u2019 expectations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But continuing claims hit the highest level since February, rising by 62,000 to 1.671 million in the week ending November 26.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Gas Prices Continue Decline<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">U.S. average gas prices are now lower than they were at this same time one year ago.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AAA shows the national average for a gallon of regular gas dipped to $3.329 today.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That\u2019s lower than $3.343 a year ago and down sharply from the record $5.01 per gallon earlier this year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The latest drop in gas prices comes as refineries are running at high capacity because of the diesel shortage in the U.S.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is resulting in excess regular gas with demand down about 7% compared to a year ago.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But diesel prices are still high, with the national average at $5.00 per gallon.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Analysts expect the national average for regular gas to fall below $3 a gallon by Christmas.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Oil Prices Rebound<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Oil prices are rebounding today on fresh demand hopes in China and signs of Russian oil tankers being delayed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">West Texas Intermediate crude futures are up more than 4% to over $75 bbl while Brent crude futures are up 2.3% to just under $79 bbl.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China announced the most significant relaxation of its Covid restrictions on Wednesday.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The country will now allow infected people with mild symptoms to quarantine at home and dropped testing requirements for those traveling domestically.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">China is the second-largest crude importer in the world.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Tesla Slides On Report Of Slowdown At Shanghai Plant<\/span><\/h2>\n<p><b>Tesla <\/b><span style=\"font-weight: 400;\">(TSLA) shares are falling 1.3% ahead of the open following a Bloomberg report the company is shortening shifts and delaying hiring at its Shanghai plant.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The electric automaker is reportedly cutting shifts by about two hours as the plant grapples with elevated inventory levels due to slowing demand in the Chinese auto market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The China Passenger Cars Association reported a 10.5% drop in car sales in November from October.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sales were down 9.2% year over year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But Tesla\u2019s Shanghai factory still delivered a record 100,291 electric vehicles in the month.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">In Case You Missed It<\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">The CEOs of <\/span><b>Bank of America <\/b><span style=\"font-weight: 400;\">(BAC) and <\/span><b>Wells Fargo <\/b><span style=\"font-weight: 400;\">(WFC) warned of a slowdown in consumer spending Wednesday. Speaking at a financial conference, both executives said they have seen slowing growth in both credit card and debit card purchase volumes. Both joined <\/span><b>JPMorgan Chase <\/b><span style=\"font-weight: 400;\">(JPM) CEO Jamie Dimon in predicting a recession in 2023.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Carvana <\/b><span style=\"font-weight: 400;\">(CVNA) shares plummeted 42.9% on Wednesday amid growing bankruptcy concerns. Bloomberg reported the online used car retailer\u2019s largest creditors signed a deal that binds them to act together in negotiations with the company. That agreement will last 3 months and such deals are usually viewed as a way to streamline negotiations around debt restructurings.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>DJIA Futures: +151 (+0.5%) SPX Futures: +23 (+0.6%) NASDAQ Futures: +68 (+0.6%) Good morning friends! Futures are higher as traders continue to assess the risk of an economic downturn. Let\u2019s get right to it! GameStop Reports Steeper Loss, Weaker Sales Than Expected GameStop (GME) shares are up 0.4% ahead of the open despite reporting weaker-than-expected Q3 results.\u00a0 Here\u2019s how the video game retailer\u2019s results compared to analysts\u2019 expectations: Adjusted loss per share: $0.31 vs $0.28 expected Revenue: $1.186 billion vs $1.345 billion expected Revenue was down 9% year over year and this marked GameStop\u2019s seventh consecutive quarterly loss.\u00a0 The CEO said the company remains focused on achieving profitability in the near term and growth in the long term.\u00a0 He said, \u201cWe\u2019re seeking to transform a legacy brick-and-mortar business that was on the brink of bankruptcy. The company is a stronger business today than at any time in the recent past.\u201d Rent the Runway Sales Jump Rent the Runway (RENT) shares are rallying 14.8% in premarket trade after reporting strong Q3 sales than expected.\u00a0 Here\u2019s how the fashion rental and subscription company\u2019s results compared to analysts\u2019 expectations: Loss per share: $0.56 as expected Revenue: $77.4 million vs $72.9 million expected Revenue was up 31% year over year while active subscribers jumped 15%.\u00a0 Rent the Runway\u2019s CEO told CNBC that inflation is making the company more appealing to customers. She said, \u201cRent the Runway\u2019s business model is fundamentally about delivering an enormous amount of financial value to the consumer. So there\u2019s no other place that the consumer can go to get as much financial value as she receives from our offering.\u201d The company forecast Q4 revenue of $72 million to $74 million, higher than analysts\u2019 estimates of $72 million. Rent the Runway also hiked its full-year revenue forecast to between $293 million and $295 million vs $285 million to $290 million previously.\u00a0 Weekly Jobless Claims Jump Weekly jobless claims rose as expected last week as the U.S. labor market remains relatively stable.\u00a0 The Labor Department reported 230,000 Americans filed initial claims for unemployment benefits.\u00a0 That was up by 4,000 from the previous week and in line with economists\u2019 expectations. But continuing claims hit the highest level since February, rising by 62,000 to 1.671 million in the week ending November 26. Gas Prices Continue Decline U.S. average gas prices are now lower than they were at this same time one year ago.\u00a0 AAA shows the national average for a gallon of regular gas dipped to $3.329 today.\u00a0 That\u2019s lower than $3.343 a year ago and down sharply from the record $5.01 per gallon earlier this year.\u00a0 The latest drop in gas prices comes as refineries are running at high capacity because of the diesel shortage in the U.S.\u00a0 That is resulting in excess regular gas with demand down about 7% compared to a year ago.\u00a0 But diesel prices are still high, with the national average at $5.00 per gallon. Analysts expect the national average for regular gas to fall below $3 a gallon by Christmas.\u00a0 Oil Prices Rebound Oil prices are rebounding today on fresh demand hopes in China and signs of Russian oil tankers being delayed.\u00a0 West Texas Intermediate crude futures are up more than 4% to over $75 bbl while Brent crude futures are up 2.3% to just under $79 bbl.\u00a0 China announced the most significant relaxation of its Covid restrictions on Wednesday. The country will now allow infected people with mild symptoms to quarantine at home and dropped testing requirements for those traveling domestically.\u00a0 China is the second-largest crude importer in the world. Tesla Slides On Report Of Slowdown At Shanghai Plant Tesla (TSLA) shares are falling 1.3% ahead of the open following a Bloomberg report the company is shortening shifts and delaying hiring at its Shanghai plant.\u00a0 The electric automaker is reportedly cutting shifts by about two hours as the plant grapples with elevated inventory levels due to slowing demand in the Chinese auto market.\u00a0 The China Passenger Cars Association reported a 10.5% drop in car sales in November from October.\u00a0 Sales were down 9.2% year over year. But Tesla\u2019s Shanghai factory still delivered a record 100,291 electric vehicles in the month. In Case You Missed It The CEOs of Bank of America (BAC) and Wells Fargo (WFC) warned of a slowdown in consumer spending Wednesday. Speaking at a financial conference, both executives said they have seen slowing growth in both credit card and debit card purchase volumes. Both joined JPMorgan Chase (JPM) CEO Jamie Dimon in predicting a recession in 2023.\u00a0 Carvana (CVNA) shares plummeted 42.9% on Wednesday amid growing bankruptcy concerns. Bloomberg reported the online used car retailer\u2019s largest creditors signed a deal that binds them to act together in negotiations with the company. That agreement will last 3 months and such deals are usually viewed as a way to streamline negotiations around debt restructurings.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":65417,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-65408","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\/65408","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=65408"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65408\/revisions"}],"predecessor-version":[{"id":65423,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65408\/revisions\/65423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/65417"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=65408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=65408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=65408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}