{"id":68026,"date":"2023-05-18T09:04:52","date_gmt":"2023-05-18T13:04:52","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=68026"},"modified":"2023-05-18T09:04:52","modified_gmt":"2023-05-18T13:04:52","slug":"coffee-with-greta-fed-pause-in-question","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/05\/18\/coffee-with-greta-fed-pause-in-question\/","title":{"rendered":"Coffee With Greta: Fed Pause In Question"},"content":{"rendered":"

DJIA Futures: <\/b>-57 (-0.2%)<\/span><\/p>\n

SPX Futures: <\/b>-2 (-0.04%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+5 (+0.04%<\/span><\/p>\n

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

Futures are mixed as traders digest hawkish comments from a key Fed official and Walmart\u2019s strong earnings.<\/span><\/p>\n

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

Dallas Fed President Does Not Support Pause<\/span><\/h2>\n

Dallas Fed President Lorie Logan does not believe current data supports a pause in rate hikes at the bank\u2019s next meeting.\u00a0<\/span><\/p>\n

In a speech prepared for today in San Antonio, Logan said, \u201cThe data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren\u2019t there yet.\u201d<\/span><\/p>\n

She is a voting member of the Federal Open Market Committee this year.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows traders split about 50\/50 on whether the Fed will hold rates steady or implement a 25bps hike at the June 14 meeting.\u00a0<\/span><\/p>\n

Logan said, \u201cWe haven\u2019t yet made the progress we need to make. And it\u2019s a long way from here to 2% inflation.\u201d<\/span><\/p>\n

The Fed\u2019s preferred inflation gauge for April, the core PCE price index, will be released next week.<\/span><\/p>\n

Walmart Jumps After Earnings Beat<\/span><\/h2>\n

Walmart <\/b>(WMT) shares are up 1.4% ahead of the open after beating Q1 expectations on the top and bottom line and hiking its full-year outlook.\u00a0<\/span><\/p>\n

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

    \n
  • Adjusted EPS: $1.47 vs $1.32 expected<\/span><\/li>\n
  • Revenue: $152.30 billion vs $148.76 billion expected<\/span><\/li>\n<\/ul>\n

    Sales rose nearly 8% year over year as strong grocery sales helped offset weaker clothing and electronics sales.<\/span><\/p>\n

    Walmart raised its full-year forecast after the beat, now expecting adjusted earnings between $6.10 and $6.20 per share.<\/span><\/p>\n

    But its Q2 outlook was a bit weaker than expected.\u00a0<\/span><\/p>\n

    The retailer expects Q2 earnings to range between $1.63 and $1.68 per share vs $1.71 expected.<\/span><\/p>\n

    The CFO said they have seen a shift in consumer spending but shoppers remain resilient.\u00a0<\/span><\/p>\n

    He said, \u201cI think that\u2019s in part probably because balance sheets are much stronger than they were pre-pandemic, even at this point.\u201d<\/span><\/p>\n

    Bath & Body Works Surges After Q1 Beat<\/span><\/h2>\n

    Bath & Body Works <\/b>(BBWI) shares are rallying 12.3% in premarket trade after topping Q1 estimates and raising its full-year guidance.\u00a0<\/span><\/p>\n

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

      \n
    • EPS: $0.33 vs $0.26 expected<\/span><\/li>\n
    • Revenue: $1.396 billion vs $1.393 billion expected<\/span><\/li>\n<\/ul>\n

      The CEO said, \u201cWe delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives.\u201d<\/span><\/p>\n

      Bath & Body Works raised its full-year earnings guidance after the beat to between $2.70 and $3.10 vs $2.50 to $3.00 previously.\u00a0<\/span><\/p>\n

      Cisco Drops On Demand Concerns<\/span><\/h2>\n

      Cisco <\/b>(CSCO) shares are down 4.5% ahead of the open despite beating fiscal Q3 expectations as concerns mount about demand.<\/span><\/p>\n

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

        \n
      • Adjusted EPS: $1.00 vs $0.97 expected<\/span><\/li>\n
      • Revenue: $14.57 billion vs $14.4 billion expected<\/span><\/li>\n<\/ul>\n

        But orders declined 23% during the quarter, prompting fears about lower demand.\u00a0<\/span><\/p>\n

        For fiscal Q4, Cisco forecast adjusted EPS between $1.05 to $1.07 and revenue growth of 14% to 16%.\u00a0<\/span><\/p>\n

        That was better analysts\u2019 estimates for EPS of $1.04 on $14.95 billion in revenue.<\/span><\/p>\n

        The company also raised its full-year profit guidance, expecting adjusted EPS of $3.80 to $3.82.<\/span><\/p>\n

        Weekly Jobless Claims Drop<\/span><\/h2>\n

        Weekly jobless claims fell more than expected last week as the labor market remains strong.<\/span><\/p>\n

        The Labor Department reported 242,000 Americans filed initial unemployment claims.\u00a0<\/span><\/p>\n

        That was down by 22,000 from the previous week and lower than 255,000 expected.<\/span><\/p>\n

        Continuing claims also fell by 8,000 to 1.799 million in the week ending May 6.\u00a0<\/span><\/p>\n

        Philly Fed Manufacturing Index Improves<\/span><\/h2>\n

        A key manufacturing gauge shows activity declined for the 9th straight month in May.\u00a0<\/span><\/p>\n

        The Philly Fed\u2019s manufacturing index rose by nearly 21 points to negative 10.4 this month.<\/span><\/p>\n

        That was better than expectations for negative 20 but marked the ninth straight negative reading.<\/span><\/p>\n

        New orders increased 13.8 points to negative 8.9, the shipments index improved slightly to negative 4.7, and the six-month business outlook fell by 10.3 points to negative 1.5.<\/span><\/p>\n

        Coming Up: Existing Home Sales, Leading Economic Indicators<\/span><\/h2>\n

        The National Association of Realtors reports existing home sales for April at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

        That report is expected to show the pace of sales slowed last month to a seasonally adjusted annual rate of 4.26 million units.\u00a0<\/span><\/p>\n

        The existing home market has remained restricted by low inventory keeping prices high even amid high mortgage rates.\u00a0<\/span><\/p>\n

        The Conference Board also releases its leading economic indicators index for April at 10:00 a.m.<\/span><\/p>\n

        \u00a0<\/span>That survey is expected to fall 0.6% from March.\u00a0<\/span><\/p>\n

        That would be the 13th straight monthly decline as the index continues to signal a recession is near.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

        DJIA Futures: -57 (-0.2%) SPX Futures: -2 (-0.04%) NASDAQ Futures: +5 (+0.04% Good morning friends! Futures are mixed as traders digest hawkish comments from a key Fed official and Walmart\u2019s strong earnings. Let\u2019s get right to it! Dallas Fed President Does Not Support Pause Dallas Fed President Lorie Logan does not believe current data supports a pause in rate hikes at the bank\u2019s next meeting.\u00a0 In a speech prepared for today in San Antonio, Logan said, \u201cThe data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren\u2019t there yet.\u201d She is a voting member of the Federal Open Market Committee this year.\u00a0 CME Group\u2019s FedWatch Tool shows traders split about 50\/50 on whether the Fed will hold rates steady or implement a 25bps hike at the June 14 meeting.\u00a0 Logan said, \u201cWe haven\u2019t yet made the progress we need to make. And it\u2019s a long way from here to 2% inflation.\u201d The Fed\u2019s preferred inflation gauge for April, the core PCE price index, will be released next week. Walmart Jumps After Earnings Beat Walmart (WMT) shares are up 1.4% ahead of the open after beating Q1 expectations on the top and bottom line and hiking its full-year outlook.\u00a0 Here\u2019s how the retailer\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1.47 vs $1.32 expected Revenue: $152.30 billion vs $148.76 billion expected Sales rose nearly 8% year over year as strong grocery sales helped offset weaker clothing and electronics sales. Walmart raised its full-year forecast after the beat, now expecting adjusted earnings between $6.10 and $6.20 per share. But its Q2 outlook was a bit weaker than expected.\u00a0 The retailer expects Q2 earnings to range between $1.63 and $1.68 per share vs $1.71 expected. The CFO said they have seen a shift in consumer spending but shoppers remain resilient.\u00a0 He said, \u201cI think that\u2019s in part probably because balance sheets are much stronger than they were pre-pandemic, even at this point.\u201d Bath & Body Works Surges After Q1 Beat Bath & Body Works (BBWI) shares are rallying 12.3% in premarket trade after topping Q1 estimates and raising its full-year guidance.\u00a0 Here\u2019s how the body care retailer\u2019s results compared to analysts\u2019 expectations:\u00a0 EPS: $0.33 vs $0.26 expected Revenue: $1.396 billion vs $1.393 billion expected The CEO said, \u201cWe delivered first quarter sales in line with our expectations while our EPS was better than anticipated as we saw benefits from our work to improve merchandise margin as well as early benefits from our cost optimization initiatives.\u201d Bath & Body Works raised its full-year earnings guidance after the beat to between $2.70 and $3.10 vs $2.50 to $3.00 previously.\u00a0 Cisco Drops On Demand Concerns Cisco (CSCO) shares are down 4.5% ahead of the open despite beating fiscal Q3 expectations as concerns mount about demand. Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1.00 vs $0.97 expected Revenue: $14.57 billion vs $14.4 billion expected But orders declined 23% during the quarter, prompting fears about lower demand.\u00a0 For fiscal Q4, Cisco forecast adjusted EPS between $1.05 to $1.07 and revenue growth of 14% to 16%.\u00a0 That was better analysts\u2019 estimates for EPS of $1.04 on $14.95 billion in revenue. The company also raised its full-year profit guidance, expecting adjusted EPS of $3.80 to $3.82. Weekly Jobless Claims Drop Weekly jobless claims fell more than expected last week as the labor market remains strong. The Labor Department reported 242,000 Americans filed initial unemployment claims.\u00a0 That was down by 22,000 from the previous week and lower than 255,000 expected. Continuing claims also fell by 8,000 to 1.799 million in the week ending May 6.\u00a0 Philly Fed Manufacturing Index Improves A key manufacturing gauge shows activity declined for the 9th straight month in May.\u00a0 The Philly Fed\u2019s manufacturing index rose by nearly 21 points to negative 10.4 this month. That was better than expectations for negative 20 but marked the ninth straight negative reading. New orders increased 13.8 points to negative 8.9, the shipments index improved slightly to negative 4.7, and the six-month business outlook fell by 10.3 points to negative 1.5. Coming Up: Existing Home Sales, Leading Economic Indicators The National Association of Realtors reports existing home sales for April at 10:00 a.m. ET.\u00a0 That report is expected to show the pace of sales slowed last month to a seasonally adjusted annual rate of 4.26 million units.\u00a0 The existing home market has remained restricted by low inventory keeping prices high even amid high mortgage rates.\u00a0 The Conference Board also releases its leading economic indicators index for April at 10:00 a.m. \u00a0That survey is expected to fall 0.6% from March.\u00a0 That would be the 13th straight monthly decline as the index continues to signal a recession is near.<\/p>\n","protected":false},"author":41,"featured_media":68036,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-68026","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\/68026","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=68026"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68026\/revisions"}],"predecessor-version":[{"id":68038,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68026\/revisions\/68038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/68036"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=68026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=68026"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=68026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}