{"id":67681,"date":"2023-05-03T08:59:48","date_gmt":"2023-05-03T12:59:48","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=67681"},"modified":"2023-05-03T08:59:48","modified_gmt":"2023-05-03T12:59:48","slug":"coffee-with-greta-fed-day","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/05\/03\/coffee-with-greta-fed-day\/","title":{"rendered":"Coffee With Greta: Fed Day"},"content":{"rendered":"

DJIA Futures: <\/b>+25 (+0.1%)<\/span><\/p>\n

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

NASDAQ Futures:<\/b>+18 (+0.1%)<\/span><\/p>\n

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

Futures are up slightly as traders look ahead to this afternoon\u2019s Fed decision.<\/span><\/p>\n

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

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

The Federal Reserve releases its latest interest rate decision at 2:00 p.m. ET today.\u00a0<\/span><\/p>\n

CME Group\u2019s FedWatch Tool currently shows 82.8% of traders anticipating another 25 basis point rate hike.\u00a0<\/span><\/p>\n

But the real focus will be on the language in the Fed statement about future hikes and the Fed Chair\u2019s tone during his 2:30 p.m. press conference.\u00a0<\/span><\/p>\n

Traders will also be listening for what Powell has to say about the regional banking crisis after the failure of First Republic Bank earlier this week.\u00a0<\/span><\/p>\n

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

Private sector job growth was way hotter than expected in April.\u00a0<\/span><\/p>\n

Payroll firm ADP reported that private employers added 296,000 jobs last month.\u00a0<\/span><\/p>\n

That was sharply higher than 133,000 expected and up from the downwardly revised 142,000 in March.\u00a0<\/span><\/p>\n

It was the highest monthly increase since July 2022.\u00a0<\/span><\/p>\n

But annual pay growth continued to slow, up 6.7% year over year.<\/span><\/p>\n

The leisure and hospitality sector led April\u2019s gains, adding 154,000 jobs.\u00a0<\/span><\/p>\n

Education and health services added 69,000, construction added 53,000, natural resources and mining added 52,000, and trade, transportation, and utilities added 32,000.\u00a0<\/span><\/p>\n

The financial services sector lost 28,000 jobs while manufacturing lost 38,000.\u00a0<\/span><\/p>\n

This data comes ahead of the Labor Department\u2019s official April jobs report on Friday which is expected to show the U.S. economy added 180,000 jobs last month with the unemployment rate ticking higher to 3.6%.<\/span><\/p>\n

AMD Tops Q1 Estimates, Issues Weak Guidance<\/span><\/h2>\n

Advanced Micro Devices <\/b>(AMD) shares are falling 7.4% ahead of the open after beating Q1 expectations on the top and bottom line but issuing weak guidance.\u00a0<\/span><\/p>\n

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

    \n
  • Adjusted EPS: $0.60 vs $0.56 expected<\/span><\/li>\n
  • Revenue: $5.35 billion vs $5.3 billion expected<\/span><\/li>\n<\/ul>\n

    Although the results topped analysts\u2019 estimates, revenue was down 9% year over year and AMD\u2019s Q2 guidance was weaker than expected.\u00a0<\/span><\/p>\n

    The company expects $5.3 billion in Q2 revenue vs $5.48 billion expected.\u00a0<\/span><\/p>\n

    Ford Smashes Q1 Expectations, Maintains Outlook\u00a0<\/span><\/h2>\n

    Ford <\/b>(F) shares are down 1.1% in premarket trading after solidly beating Q1 expectations but reiterating its full-year guidance.\u00a0<\/span><\/p>\n

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

      \n
    • Adjusted EPS: $0.63 vs $0.41 expected<\/span><\/li>\n
    • Revenue: $39.09 billion vs $36.08 billion expected<\/span><\/li>\n<\/ul>\n

      The CFO said Q1 was a \u201cpeek at what\u2019s possible to generate value and growth.\u201d\u00a0<\/span><\/p>\n

      Ford reiterated its forecast for full-year adjusted earnings between $9 billion and $11 billion.\u00a0<\/span><\/p>\n

      It also still expects to lose about $3 billion from its EV operations this year after the segment lost $722 million in Q1.<\/span><\/p>\n

      But Ford\u2019s traditional car business earned $2.6 billion in profit while its fleet operations reported $1.4 billion in earnings.<\/span><\/p>\n

      Starbucks Earnings Top Expectations<\/span><\/h2>\n

      Starbucks <\/b>(SBUX) shares are down 5.3% ahead of the open after beating fiscal Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

        \n
      • Adjusted EPS: $0.74 vs $0.65 expected<\/span><\/li>\n
      • Revenue: $8.72 billion vs $8.4 billion expected<\/span><\/li>\n<\/ul>\n

        Global same-store sales were up 11% from a year ago vs expectations of 7.1%.\u00a0<\/span><\/p>\n

        Same-store sales jumped 12% in the U.S. and 3% in China, which is Starbucks\u2019 second-largest market.<\/span><\/p>\n

        It was the first sales increase in China since Q3 2021.\u00a0<\/span><\/p>\n

        But the stock is sinking after Starbucks reaffirmed its full-year outlook.<\/span><\/p>\n

        The company still expects revenue growth of 10% to 12% and EPS growth on the low end of 15% to 20%.<\/span><\/p>\n

        CVS Slips On Lower Outlook<\/span><\/h2>\n

        CVS <\/b>(CVS) shares are down 2.6% in premarket trade after beating Q1 expectations but lowering its profit outlook.\u00a0<\/span><\/p>\n

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

          \n
        • Adjusted EPS: $2.20 vs $2.09 expected<\/span><\/li>\n
        • Revenue: $85.28 billion vs $80.81 billion expected<\/span><\/li>\n<\/ul>\n

          Revenue was up 11% year over year.\u00a0<\/span><\/p>\n

          But CVS lowered its 2023 adjusted EPS guidance to a range of $8.50 to $8.70, down $0.20 from its previous forecast.\u00a0<\/span><\/p>\n

          The company said that lower guidance was due to costs associated with its acquisitions of Signify Health and Oak Street Health.<\/span><\/p>\n

          In Case You Missed It<\/span><\/h2>\n
            \n
          • Job openings fell more than expected in March. The Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) shows there were 9.6 million available jobs in March vs 9.7 million expected. That was down from 9.9 million in February and the lowest number of openings since April 2021.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            DJIA Futures: +25 (+0.1%) SPX Futures: +5 (+0.1%) NASDAQ Futures:+18 (+0.1%) Good morning friends! Futures are up slightly as traders look ahead to this afternoon\u2019s Fed decision. Let\u2019s get right to it! Fed Day The Federal Reserve releases its latest interest rate decision at 2:00 p.m. ET today.\u00a0 CME Group\u2019s FedWatch Tool currently shows 82.8% of traders anticipating another 25 basis point rate hike.\u00a0 But the real focus will be on the language in the Fed statement about future hikes and the Fed Chair\u2019s tone during his 2:30 p.m. press conference.\u00a0 Traders will also be listening for what Powell has to say about the regional banking crisis after the failure of First Republic Bank earlier this week.\u00a0 Private Job Growth Surges Private sector job growth was way hotter than expected in April.\u00a0 Payroll firm ADP reported that private employers added 296,000 jobs last month.\u00a0 That was sharply higher than 133,000 expected and up from the downwardly revised 142,000 in March.\u00a0 It was the highest monthly increase since July 2022.\u00a0 But annual pay growth continued to slow, up 6.7% year over year. The leisure and hospitality sector led April\u2019s gains, adding 154,000 jobs.\u00a0 Education and health services added 69,000, construction added 53,000, natural resources and mining added 52,000, and trade, transportation, and utilities added 32,000.\u00a0 The financial services sector lost 28,000 jobs while manufacturing lost 38,000.\u00a0 This data comes ahead of the Labor Department\u2019s official April jobs report on Friday which is expected to show the U.S. economy added 180,000 jobs last month with the unemployment rate ticking higher to 3.6%. AMD Tops Q1 Estimates, Issues Weak Guidance Advanced Micro Devices (AMD) shares are falling 7.4% ahead of the open after beating Q1 expectations on the top and bottom line but issuing weak guidance.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 expectations:\u00a0 Adjusted EPS: $0.60 vs $0.56 expected Revenue: $5.35 billion vs $5.3 billion expected Although the results topped analysts\u2019 estimates, revenue was down 9% year over year and AMD\u2019s Q2 guidance was weaker than expected.\u00a0 The company expects $5.3 billion in Q2 revenue vs $5.48 billion expected.\u00a0 Ford Smashes Q1 Expectations, Maintains Outlook\u00a0 Ford (F) shares are down 1.1% in premarket trading after solidly beating Q1 expectations but reiterating its full-year guidance.\u00a0 Here\u2019s how the automaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.63 vs $0.41 expected Revenue: $39.09 billion vs $36.08 billion expected The CFO said Q1 was a \u201cpeek at what\u2019s possible to generate value and growth.\u201d\u00a0 Ford reiterated its forecast for full-year adjusted earnings between $9 billion and $11 billion.\u00a0 It also still expects to lose about $3 billion from its EV operations this year after the segment lost $722 million in Q1. But Ford\u2019s traditional car business earned $2.6 billion in profit while its fleet operations reported $1.4 billion in earnings. Starbucks Earnings Top Expectations Starbucks (SBUX) shares are down 5.3% ahead of the open after beating fiscal Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the coffee giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.74 vs $0.65 expected Revenue: $8.72 billion vs $8.4 billion expected Global same-store sales were up 11% from a year ago vs expectations of 7.1%.\u00a0 Same-store sales jumped 12% in the U.S. and 3% in China, which is Starbucks\u2019 second-largest market. It was the first sales increase in China since Q3 2021.\u00a0 But the stock is sinking after Starbucks reaffirmed its full-year outlook. The company still expects revenue growth of 10% to 12% and EPS growth on the low end of 15% to 20%. CVS Slips On Lower Outlook CVS (CVS) shares are down 2.6% in premarket trade after beating Q1 expectations but lowering its profit outlook.\u00a0 Here\u2019s how the retailer\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $2.20 vs $2.09 expected Revenue: $85.28 billion vs $80.81 billion expected Revenue was up 11% year over year.\u00a0 But CVS lowered its 2023 adjusted EPS guidance to a range of $8.50 to $8.70, down $0.20 from its previous forecast.\u00a0 The company said that lower guidance was due to costs associated with its acquisitions of Signify Health and Oak Street Health. In Case You Missed It Job openings fell more than expected in March. The Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) shows there were 9.6 million available jobs in March vs 9.7 million expected. That was down from 9.9 million in February and the lowest number of openings since April 2021.<\/p>\n","protected":false},"author":41,"featured_media":67696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-67681","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\/67681","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=67681"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67681\/revisions"}],"predecessor-version":[{"id":67699,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67681\/revisions\/67699"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/67696"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=67681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=67681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=67681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}