{"id":66467,"date":"2023-02-24T09:00:17","date_gmt":"2023-02-24T14:00:17","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66467"},"modified":"2023-02-24T09:00:17","modified_gmt":"2023-02-24T14:00:17","slug":"coffee-with-greta-another-hot-inflation-report","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/02\/24\/coffee-with-greta-another-hot-inflation-report\/","title":{"rendered":"Coffee With Greta: Another Hot Inflation Report"},"content":{"rendered":"<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">-372\u00a0 (-1.1%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">-53 (-1.3%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">-215 (-1.8%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are tumbling after the release of more hotter-than-expected inflation data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Another Hot Inflation Reading<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Fed\u2019s preferred inflation gauge rose more than expected in January.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Bureau of Economic Analysis\u2019 personal consumption expenditures (PCE) price index rose 0.6% monthly and 5.4% year over year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The core PCE price index, which excludes food and energy, jumped 0.6% monthly and 4.7% annually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That was hotter than economists\u2019 expectations for the index to rise 0.5% monthly and 4.4% annually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The data showed inflation heating up at the start of the year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consumer spending also jumped 1.8% as prices rose vs 1.4% expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Personal income rose 1.4% vs the 1.2% estimate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the personal saving rate increased to 4.7%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More traders are starting to believe the Fed will vote for a 50 basis point rate hike at the next meeting.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CME Group\u2019s <\/span><a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\"><span style=\"font-weight: 400;\">FedWatch<\/span><\/a><span style=\"font-weight: 400;\"> Tool now shows 67% expecting another 25 basis point move and 33% expecting a 50bp hike.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Block Rallies On Strong Outlook<\/span><\/h2>\n<p><b>Block <\/b><span style=\"font-weight: 400;\">(SQ) shares are up 5.5% ahead of the open after topping Q4 revenue expectations and issuing strong guidance.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the payments company\u2019s results compared to analysts\u2019 expectations:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted EPS: $0.22 vs $0.30 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $4.65 billion vs $4.61 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The company posted $1.66 billion in gross profit, up 40% year over year and better than $1.53 billion expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Block\u2019s Cash App business had 51 million monthly active transacting users in the quarter and generated $848 million in gross profit, up 64% year over year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For 2023, executives expect $1.3 billion in Ebitda which was in line with estimates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Block is also targeting a gross profit of 25%, up from 22% in Q4.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Nikola Drops After Reporting Weak Q4 Sales<\/span><\/h2>\n<p><b>Nikola <\/b><span style=\"font-weight: 400;\">(NKLA) shares are falling 2.3% in premarket trade after sharply missing Q4 sales expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the electric truck maker\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: $0.37 vs $0.43 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $6.6 million vs $32.1 million expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The revenue miss came as Nikola delivered just 20 of the 133 battery-electric trucks it produced in the quarter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company said it made a series of changes to the truck in response to early customer feedback.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nikola built 258 trucks in 2022, hitting its previous guidance of 255 to 305.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2023, the company expects to deliver between 250 and 350 battery-electric trucks this year and 125 to 150 of its upcoming fuel-cell trucks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nikola confirmed it is still on track to begin production of the fuel-cell version in the second half of the year.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Coming Up: New Home Sales, Consumer Sentiment<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Census Bureau releases its January new home sales report at 10:00 a.m. ET.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That data is expected to show the pace of new sales rose to a seasonally adjusted annual rate of 620,000 units last month from 616,000 in December.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The University of Michigan also releases its final February consumer sentiment index at 10:00 a.m.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That index is expected to be unchanged from the preliminary reading of 66.4 earlier this month.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">In Case You Missed It<\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>JPMorgan Chase <\/b><span style=\"font-weight: 400;\">(JPM) CEO Jamie Dimon said Thursday that the Fed has lost control of inflation and it remains a work in progress. Dimon told <\/span><a href=\"https:\/\/www.cnbc.com\/2023\/02\/23\/jamie-dimon-says-the-federal-reserve-has-lost-a-little-bit-of-control-of-inflation-.html\"><span style=\"font-weight: 400;\">CNBC<\/span><\/a><span style=\"font-weight: 400;\"> Thursday, \u201cthe fact is we lost a little bit of control of inflation.\u201d He said it may take \u201ca while\u201d for the Fed to get inflation down to its goal of 2% and he expects interest rates to remain higher for longer. He remained positive about the strength of the economy currently but uncertain about the future. Dimon said, \u201cThe U.S. economy right now is doing quite well. Consumers have a lot of money. They\u2019re spending it. Jobs are plentiful. That\u2019s today. Out in front of us, there\u2019s some scary stuff.\u201d<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>DJIA Futures: -372\u00a0 (-1.1%) SPX Futures: -53 (-1.3%) NASDAQ Futures: -215 (-1.8%) Good morning friends! Futures are tumbling after the release of more hotter-than-expected inflation data. Let\u2019s get right to it! Another Hot Inflation Reading The Fed\u2019s preferred inflation gauge rose more than expected in January.\u00a0 The Bureau of Economic Analysis\u2019 personal consumption expenditures (PCE) price index rose 0.6% monthly and 5.4% year over year.\u00a0 The core PCE price index, which excludes food and energy, jumped 0.6% monthly and 4.7% annually.\u00a0 That was hotter than economists\u2019 expectations for the index to rise 0.5% monthly and 4.4% annually. The data showed inflation heating up at the start of the year. Consumer spending also jumped 1.8% as prices rose vs 1.4% expected.\u00a0 Personal income rose 1.4% vs the 1.2% estimate.\u00a0 And the personal saving rate increased to 4.7%.\u00a0 More traders are starting to believe the Fed will vote for a 50 basis point rate hike at the next meeting.\u00a0 CME Group\u2019s FedWatch Tool now shows 67% expecting another 25 basis point move and 33% expecting a 50bp hike. Block Rallies On Strong Outlook Block (SQ) shares are up 5.5% ahead of the open after topping Q4 revenue expectations and issuing strong guidance.\u00a0 Here\u2019s how the payments company\u2019s results compared to analysts\u2019 expectations:\u00a0 Adjusted EPS: $0.22 vs $0.30 expected Revenue: $4.65 billion vs $4.61 billion expected The company posted $1.66 billion in gross profit, up 40% year over year and better than $1.53 billion expected.\u00a0 Block\u2019s Cash App business had 51 million monthly active transacting users in the quarter and generated $848 million in gross profit, up 64% year over year.\u00a0 For 2023, executives expect $1.3 billion in Ebitda which was in line with estimates.\u00a0 Block is also targeting a gross profit of 25%, up from 22% in Q4.\u00a0 Nikola Drops After Reporting Weak Q4 Sales Nikola (NKLA) shares are falling 2.3% in premarket trade after sharply missing Q4 sales expectations.\u00a0 Here\u2019s how the electric truck maker\u2019s results compared to analysts\u2019 expectations: Adjusted loss per share: $0.37 vs $0.43 expected Revenue: $6.6 million vs $32.1 million expected The revenue miss came as Nikola delivered just 20 of the 133 battery-electric trucks it produced in the quarter.\u00a0 The company said it made a series of changes to the truck in response to early customer feedback.\u00a0 Nikola built 258 trucks in 2022, hitting its previous guidance of 255 to 305.\u00a0 In 2023, the company expects to deliver between 250 and 350 battery-electric trucks this year and 125 to 150 of its upcoming fuel-cell trucks. Nikola confirmed it is still on track to begin production of the fuel-cell version in the second half of the year. Coming Up: New Home Sales, Consumer Sentiment The Census Bureau releases its January new home sales report at 10:00 a.m. ET.\u00a0 That data is expected to show the pace of new sales rose to a seasonally adjusted annual rate of 620,000 units last month from 616,000 in December.\u00a0 The University of Michigan also releases its final February consumer sentiment index at 10:00 a.m.\u00a0 That index is expected to be unchanged from the preliminary reading of 66.4 earlier this month.\u00a0 In Case You Missed It JPMorgan Chase (JPM) CEO Jamie Dimon said Thursday that the Fed has lost control of inflation and it remains a work in progress. Dimon told CNBC Thursday, \u201cthe fact is we lost a little bit of control of inflation.\u201d He said it may take \u201ca while\u201d for the Fed to get inflation down to its goal of 2% and he expects interest rates to remain higher for longer. He remained positive about the strength of the economy currently but uncertain about the future. Dimon said, \u201cThe U.S. economy right now is doing quite well. Consumers have a lot of money. They\u2019re spending it. Jobs are plentiful. That\u2019s today. Out in front of us, there\u2019s some scary stuff.\u201d<\/p>\n","protected":false},"author":41,"featured_media":66473,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66467","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\/66467","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=66467"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66467\/revisions"}],"predecessor-version":[{"id":66471,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66467\/revisions\/66471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66473"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66467"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}