{"id":66163,"date":"2023-02-03T08:58:06","date_gmt":"2023-02-03T13:58:06","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66163"},"modified":"2023-02-03T09:01:11","modified_gmt":"2023-02-03T14:01:11","slug":"coffee-with-greta-piping-hot-jobs-report","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/02\/03\/coffee-with-greta-piping-hot-jobs-report\/","title":{"rendered":"Coffee With Greta: Piping Hot Jobs Report"},"content":{"rendered":"

DJIA Futures: <\/b>-189 (-0.6%)<\/span><\/p>\n

SPX Futures: <\/b>-45 (-1.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-224 (-1.7%)<\/span><\/p>\n

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

Futures are tumbling after the release of a piping-hot January jobs report.<\/span><\/p>\n

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

Job Growth Surges<\/span><\/h2>\n

U.S. job growth surged past expectations in January.<\/span><\/p>\n

The Labor Department reported the U.S. economy added 517,000 jobs last month with the unemployment rate falling to 3.4%.<\/span><\/p>\n

That was sharply higher than expectations for 187,000 jobs and the unemployment rate to tick up to 3.6%.\u00a0<\/span><\/p>\n

It was the strongest monthly gain since July 2022 and the lowest unemployment rate since May 1969.<\/span><\/p>\n

The leisure and hospitality sector continued to lead the monthly gains, adding 128,000 jobs.\u00a0<\/span><\/p>\n

While job creation surged, wages also posted solid gains.\u00a0<\/span><\/p>\n

Average hourly earnings rose 0.3% monthly and 4.4% year over year.\u00a0<\/span><\/p>\n

The data is bad news for traders who are betting the Fed will pause rate hikes after March and approve two rate cuts at the end of the year.\u00a0<\/span><\/p>\n

The central bank has said it needs to see a weakening in the labor market to make a real difference on inflation.<\/span><\/p>\n

Treasury Yields Surge After Hot Jobs Report<\/span><\/h2>\n

U.S. Treasury yields are rallying this morning after the release of that hot jobs report.\u00a0<\/span><\/p>\n

The 2-year yield is up 14 basis points to 3.42% while the 10-year yield is up 9 basis points to 3.5%.\u00a0<\/span><\/p>\n

The new data underscored the strength of the U.S. labor market even in the face of the Fed\u2019s aggressive monetary policy.<\/span><\/p>\n

Apple Drops On Big Earnings Miss<\/span><\/h2>\n

Apple <\/b>(AAPL) shares are falling 1.9% ahead of the open after reporting its largest quarterly revenue decline since 2016.<\/span><\/p>\n

Here\u2019s how the iPhone maker\u2019s fiscal Q1 results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • EPS: $1.88 vs $1.94 expected<\/span><\/li>\n
  • Revenue: $117.15 billion vs $121.10 billion expected<\/span><\/li>\n<\/ul>\n

    That was Apple\u2019s first EPS miss vs expectations in nearly seven years.\u00a0<\/span><\/p>\n

    Sales in the key holiday quarter dropped 5.5% from a year ago, the first year-over-year decline since 2019.<\/span><\/p>\n

    Apple CEO Tim Cook blamed the weak results on the strong dollar, production issues in China for the iPhone 14 Pro and Pro Max, and the overall macroeconomic environment.\u00a0<\/span><\/p>\n

    The company did not provide fiscal Q2 guidance.\u00a0<\/span><\/p>\n

    Amazon Falls On Light Guidance<\/span><\/h2>\n

    Amazon<\/b> (AMZN) shares are dropping 5.8% in premarket trade as light guidance overshadows a Q4 revenue beat.\u00a0<\/span><\/p>\n

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

      \n
    • EPS: $0.03, not comparable to estimates because of a $2.3 billion pre-tax non-cash loss on the value of the company\u2019s stake in Rivian<\/span><\/li>\n
    • Revenue: $149.2 billion vs $145.42 billion expected<\/span><\/li>\n
    • Amazon Web Services Revenue: $21.4 billion vs $21.87 billion expected<\/span><\/li>\n
    • Advertising Revenue: $11.56 billion vs $11.38 billion expected<\/span><\/li>\n<\/ul>\n

      Amazon\u2019s Q4 sales were higher than its own prior guidance while its $2.7 billion in operating income was in line with estimates.<\/span><\/p>\n

      The company\u2019s full-year 202 sales totaled $514 billion, up 9% year over year.\u00a0<\/span><\/p>\n

      Amazon lost $2.7 billion last year, including a $12.7 billion loss from its position in <\/span>Rivian <\/b>(RIVN).<\/span><\/p>\n

      The company expects Q1 revenue to range between $121 billion and $126 billion, sharply missing analysts\u2019 estimates of $139.2 billion.\u00a0<\/span><\/p>\n

      CEO Andy Jassy said, \u201cIn the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon.\u201d<\/span><\/p>\n

      Alphabet Misses Q4 Expectations<\/span><\/h2>\n

      Alphabet <\/b>(GOOGL) shares are 4% lower ahead of the open after missing Q4 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

      Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

        \n
      • EPS: $1.05 vs $1.18 expected<\/span><\/li>\n
      • Revenue $76.05 billion vs $76.53 billion<\/span><\/li>\n<\/ul>\n

        YouTube ad revenue was the biggest drag on overall sales, coming in at $7.96 billion vs $8.25 billion expected and down from $8.63 billion the year before.<\/span><\/p>\n

        Alphabet said it will incur a charge of between $1.9 billion and $2.3 billion, mostly in the current quarter, related to the layoffs it announced in January.\u00a0\u00a0<\/span><\/p>\n

        Ford Misses Q4 Profit Expectations, Reports Full-Year Loss<\/span><\/h2>\n

        Ford <\/b>(F) shares falling 7.6% in premarket trade after missing Q4 profit expectations and reporting a net loss for the full-year.\u00a0<\/span><\/p>\n

        Here\u2019s how the automaker\u2019s results compared to analysts\u2019 expectations:\u00a0<\/span><\/p>\n

          \n
        • Adjusted EPS: $0.51 vs $0.62 expected<\/span><\/li>\n
        • Automotive revenue: $41.8 billion vs $40.37 billion expected\u00a0<\/span><\/li>\n<\/ul>\n

          Ford\u2019s profits were $11 billion lower than Q4 2021. <\/span>
          \n<\/span><\/p>\n

          For the full year, the company lost $2 billion.\u00a0<\/span><\/p>\n

          CEO Jim Farley said, \u201cWe should have done much better last year. We left about $2 billion in profits on the table that were within our control, and we\u2019re going to correct that with improved execution and performance.\u201d<\/span><\/p>\n

          CFO John Lawler said the disappointing earnings were mainly due to execution and supply chain management issues.\u00a0<\/span><\/p>\n

          He said, \u201cOur cost structure is not competitive. Our quality is not where it needs to be. And we will take the actions and be more aggressive about making sure that we\u2019re making progress on both of those key areas for us in 2023.\u201d<\/span><\/p>\n

          Ford said it expects to earn between $9 billion and $10 billion in adjusted ebitda this year.<\/span><\/p>\n

          Starbucks Drops After Fiscal Q1 Miss<\/span><\/h2>\n

          Starbucks <\/b>(SBUX) shares are down 2.2% ahead of the open after missing fiscal Q1 expectations.\u00a0<\/span><\/p>\n

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

            \n
          • Adjusted EPS: $0.75 vs $0.77 expected<\/span><\/li>\n
          • Revenue: $8.71 billion vs $8.78 billion expected<\/span><\/li>\n<\/ul>\n

            The miss was mainly due to lower sales in China, the company\u2019s second-largest market.\u00a0<\/span><\/p>\n

            Same-store sales in China plunged 28% last quarter while same-store sales in the U.S. rose 10%.<\/span><\/p>\n

            Starbucks expects 10% to 12% revenue growth this year and adjusted EPS growth of 15% to 20%.<\/span><\/p>\n

            In Case You Missed It<\/span><\/h2>\n
              \n
            • Coinbase <\/b>(COIN) shares surged 24% on Thursday after a federal securities suit was dismissed. A federal judge dismissed the class-action suit against the company Wednesday. The complaint claimed that Coinbase had engaged in the unregistered sale and offering of securities and failed to register as a New York state broker-dealer. The suit was dismissed with prejudice which means the plaintiffs cannot refile the same case. <\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              DJIA Futures: -189 (-0.6%) SPX Futures: -45 (-1.1%) NASDAQ Futures: -224 (-1.7%) Good morning friends! Futures are tumbling after the release of a piping-hot January jobs report. Let\u2019s get right to it! Job Growth Surges U.S. job growth surged past expectations in January. The Labor Department reported the U.S. economy added 517,000 jobs last month with the unemployment rate falling to 3.4%. That was sharply higher than expectations for 187,000 jobs and the unemployment rate to tick up to 3.6%.\u00a0 It was the strongest monthly gain since July 2022 and the lowest unemployment rate since May 1969. The leisure and hospitality sector continued to lead the monthly gains, adding 128,000 jobs.\u00a0 While job creation surged, wages also posted solid gains.\u00a0 Average hourly earnings rose 0.3% monthly and 4.4% year over year.\u00a0 The data is bad news for traders who are betting the Fed will pause rate hikes after March and approve two rate cuts at the end of the year.\u00a0 The central bank has said it needs to see a weakening in the labor market to make a real difference on inflation. Treasury Yields Surge After Hot Jobs Report U.S. Treasury yields are rallying this morning after the release of that hot jobs report.\u00a0 The 2-year yield is up 14 basis points to 3.42% while the 10-year yield is up 9 basis points to 3.5%.\u00a0 The new data underscored the strength of the U.S. labor market even in the face of the Fed\u2019s aggressive monetary policy. Apple Drops On Big Earnings Miss Apple (AAPL) shares are falling 1.9% ahead of the open after reporting its largest quarterly revenue decline since 2016. Here\u2019s how the iPhone maker\u2019s fiscal Q1 results compared to analysts\u2019 expectations: EPS: $1.88 vs $1.94 expected Revenue: $117.15 billion vs $121.10 billion expected That was Apple\u2019s first EPS miss vs expectations in nearly seven years.\u00a0 Sales in the key holiday quarter dropped 5.5% from a year ago, the first year-over-year decline since 2019. Apple CEO Tim Cook blamed the weak results on the strong dollar, production issues in China for the iPhone 14 Pro and Pro Max, and the overall macroeconomic environment.\u00a0 The company did not provide fiscal Q2 guidance.\u00a0 Amazon Falls On Light Guidance Amazon (AMZN) shares are dropping 5.8% in premarket trade as light guidance overshadows a Q4 revenue beat.\u00a0 Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 expectations: EPS: $0.03, not comparable to estimates because of a $2.3 billion pre-tax non-cash loss on the value of the company\u2019s stake in Rivian Revenue: $149.2 billion vs $145.42 billion expected Amazon Web Services Revenue: $21.4 billion vs $21.87 billion expected Advertising Revenue: $11.56 billion vs $11.38 billion expected Amazon\u2019s Q4 sales were higher than its own prior guidance while its $2.7 billion in operating income was in line with estimates. The company\u2019s full-year 202 sales totaled $514 billion, up 9% year over year.\u00a0 Amazon lost $2.7 billion last year, including a $12.7 billion loss from its position in Rivian (RIVN). The company expects Q1 revenue to range between $121 billion and $126 billion, sharply missing analysts\u2019 estimates of $139.2 billion.\u00a0 CEO Andy Jassy said, \u201cIn the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon.\u201d Alphabet Misses Q4 Expectations Alphabet (GOOGL) shares are 4% lower ahead of the open after missing Q4 expectations on the top and bottom line.\u00a0 Here\u2019s how the tech giant\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $1.05 vs $1.18 expected Revenue $76.05 billion vs $76.53 billion YouTube ad revenue was the biggest drag on overall sales, coming in at $7.96 billion vs $8.25 billion expected and down from $8.63 billion the year before. Alphabet said it will incur a charge of between $1.9 billion and $2.3 billion, mostly in the current quarter, related to the layoffs it announced in January.\u00a0\u00a0 Ford Misses Q4 Profit Expectations, Reports Full-Year Loss Ford (F) shares falling 7.6% in premarket trade after missing Q4 profit expectations and reporting a net loss for the full-year.\u00a0 Here\u2019s how the automaker\u2019s results compared to analysts\u2019 expectations:\u00a0 Adjusted EPS: $0.51 vs $0.62 expected Automotive revenue: $41.8 billion vs $40.37 billion expected\u00a0 Ford\u2019s profits were $11 billion lower than Q4 2021. For the full year, the company lost $2 billion.\u00a0 CEO Jim Farley said, \u201cWe should have done much better last year. We left about $2 billion in profits on the table that were within our control, and we\u2019re going to correct that with improved execution and performance.\u201d CFO John Lawler said the disappointing earnings were mainly due to execution and supply chain management issues.\u00a0 He said, \u201cOur cost structure is not competitive. Our quality is not where it needs to be. And we will take the actions and be more aggressive about making sure that we\u2019re making progress on both of those key areas for us in 2023.\u201d Ford said it expects to earn between $9 billion and $10 billion in adjusted ebitda this year. Starbucks Drops After Fiscal Q1 Miss Starbucks (SBUX) shares are down 2.2% ahead of the open after missing fiscal Q1 expectations.\u00a0 Here\u2019s how the coffee giant\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.75 vs $0.77 expected Revenue: $8.71 billion vs $8.78 billion expected The miss was mainly due to lower sales in China, the company\u2019s second-largest market.\u00a0 Same-store sales in China plunged 28% last quarter while same-store sales in the U.S. rose 10%. Starbucks expects 10% to 12% revenue growth this year and adjusted EPS growth of 15% to 20%. In Case You Missed It Coinbase (COIN) shares surged 24% on Thursday after a federal securities suit was dismissed. A federal judge dismissed the class-action suit against the company Wednesday. The complaint claimed that Coinbase had engaged in the unregistered sale and offering of securities and failed to register as a New York state broker-dealer. The suit was dismissed with prejudice which means the plaintiffs cannot refile the same case.<\/p>\n","protected":false},"author":41,"featured_media":66178,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66163","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\/66163","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=66163"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66163\/revisions"}],"predecessor-version":[{"id":66180,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66163\/revisions\/66180"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66178"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}