{"id":69031,"date":"2023-06-29T09:02:01","date_gmt":"2023-06-29T13:02:01","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69031"},"modified":"2023-06-29T09:02:01","modified_gmt":"2023-06-29T13:02:01","slug":"coffee-with-greta-major-revision","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/06\/29\/coffee-with-greta-major-revision\/","title":{"rendered":"Coffee With Greta: Major Revision"},"content":{"rendered":"

DJIA Futures: <\/b>+105 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+10 (+0.2%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+29 (+0.2%)<\/span><\/p>\n

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

Futures are higher as bank and tech stocks jump.<\/span><\/p>\n

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

GDP Growth Revised Sharply Higher<\/span><\/h2>\n

The U.S. economy grew much faster than previously estimated in the first quarter.\u00a0<\/span><\/p>\n

The Commerce Department revised Q1 GDP growth sharply higher to 2% from 1.3% previously.\u00a0<\/span><\/p>\n

That beat expectations for the final revision to come in at 1.4%.\u00a0<\/span><\/p>\n

The revision was due to stronger consumer spending and exports than previously estimated.\u00a0<\/span><\/p>\n

Treasury yields jumped following the release of that data as it signals the U.S. may be further from a recession than though.\u00a0<\/span><\/p>\n

The 2-year yield is up 16 basis points to 4.88% while the 10-year yield is up 9 basis points to 3.80%.<\/span><\/p>\n

Banks Pass Stress Test<\/span><\/h2>\n

Big bank stocks are up ahead of the open after passing the Fed\u2019s annual stress test on Wednesday.\u00a0<\/span><\/p>\n

JPMorgan Chase <\/b>(JPM) shares are up 1.5%, <\/span>Wells Fargo <\/b>(WFC) shares are 1.7% higher, and <\/span>Bank of America <\/b>(BAC) is up 2%.\u00a0<\/span><\/p>\n

Other bank stocks are also rising with the\u00a0Financial Select Sector SPDR ETF\u00a0<\/strong>(XLF) up 0.8% and the\u00a0SPDR S&P Regional Banking ETF\u00a0<\/strong>(KRE) up 1.9%.<\/span><\/p>\n

The Fed said all 23 banks included in the stress weathered a severe recession scenario while continuing to lend to consumers and corporations.<\/span><\/p>\n

In the hypothetical recession, all banks were able to maintain minimum capital levels.<\/span><\/p>\n

This year\u2019s test included a \u201csevere global recession\u201d with 10% unemployment, a 40% decline in commercial real estate values, and 38% drop in housing prices.<\/span><\/p>\n

The Fed\u2019s vice chair for supervision, Michael Barr, said, \u201cToday\u2019s results confirm that the banking system remains strong and resilient. At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses.\u201d<\/span><\/p>\n

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

Weekly jobless claims dropped to the lowest level in a month last week.\u00a0<\/span><\/p>\n

The Labor Department reported 239,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

That was down by 26,000 from the week before and well below expectations for 265,000.<\/span><\/p>\n

It was the largest drop since October 2021.\u00a0<\/span><\/p>\n

Continuing claims decreased by 20,000 to 1.74 million in the week ending June 17 vs 1.77 million expected.<\/span><\/p>\n

Powell Remains Hawkish<\/span><\/h2>\n

Fed Chair Jerome Powell reiterated the central bank\u2019s plans for more rate hikes during a panel discussion in Portugal on Wednesday.\u00a0<\/span><\/p>\n

Powell told the European Central Bank Forum \u201cWe believe there\u2019s more restriction coming. What\u2019s really driving it … is a very strong labor market.\u201d<\/span><\/p>\n

The comments supported the Fed\u2019s plan for two more 25bps rate hikes this year.\u00a0<\/span><\/p>\n

CME Group\u2019s FedWatch Tool currently shows 86.8% of traders betting on a rate hike at the July 26 meeting.\u00a0<\/span><\/p>\n

Micron Rises After Earnings Beat<\/span><\/h2>\n

Micron <\/b>(MU) shares are rising 2.2% in premarket trade after beating fiscal Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

    \n
  • Adjusted loss per share: $1.43 vs $1.61 expected<\/span><\/li>\n
  • Revenue: $3.75 billion vs $3.65 billion expected<\/span><\/li>\n<\/ul>\n

    Revenue was down 57% year over year.\u00a0<\/span><\/p>\n

    For fiscal Q4, Micron forecast $3.9 billion in revenue which was in line with estimates.\u00a0<\/span><\/p>\n

    Coming Up: Pending Home Sales<\/span><\/h2>\n

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

    That data is expected to show pending sales were unchanged last month.\u00a0<\/span><\/p>\n

    Pending sales represent the number of contracts signed to purchase a home, with those sales expected to close in 30 to 60 days.\u00a0<\/span><\/p>\n

    This is a leading indicator for existing home sales.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    DJIA Futures: +105 (+0.3%) SPX Futures: +10 (+0.2%) NASDAQ Futures: +29 (+0.2%) Good morning friends! Futures are higher as bank and tech stocks jump. Let\u2019s get right to it! GDP Growth Revised Sharply Higher The U.S. economy grew much faster than previously estimated in the first quarter.\u00a0 The Commerce Department revised Q1 GDP growth sharply higher to 2% from 1.3% previously.\u00a0 That beat expectations for the final revision to come in at 1.4%.\u00a0 The revision was due to stronger consumer spending and exports than previously estimated.\u00a0 Treasury yields jumped following the release of that data as it signals the U.S. may be further from a recession than though.\u00a0 The 2-year yield is up 16 basis points to 4.88% while the 10-year yield is up 9 basis points to 3.80%. Banks Pass Stress Test Big bank stocks are up ahead of the open after passing the Fed\u2019s annual stress test on Wednesday.\u00a0 JPMorgan Chase (JPM) shares are up 1.5%, Wells Fargo (WFC) shares are 1.7% higher, and Bank of America (BAC) is up 2%.\u00a0 Other bank stocks are also rising with the\u00a0Financial Select Sector SPDR ETF\u00a0(XLF) up 0.8% and the\u00a0SPDR S&P Regional Banking ETF\u00a0(KRE) up 1.9%. The Fed said all 23 banks included in the stress weathered a severe recession scenario while continuing to lend to consumers and corporations. In the hypothetical recession, all banks were able to maintain minimum capital levels. This year\u2019s test included a \u201csevere global recession\u201d with 10% unemployment, a 40% decline in commercial real estate values, and 38% drop in housing prices. The Fed\u2019s vice chair for supervision, Michael Barr, said, \u201cToday\u2019s results confirm that the banking system remains strong and resilient. At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses.\u201d Weekly Jobless Claims Drop Weekly jobless claims dropped to the lowest level in a month last week.\u00a0 The Labor Department reported 239,000 Americans filed initial claims for unemployment benefits.\u00a0 That was down by 26,000 from the week before and well below expectations for 265,000. It was the largest drop since October 2021.\u00a0 Continuing claims decreased by 20,000 to 1.74 million in the week ending June 17 vs 1.77 million expected. Powell Remains Hawkish Fed Chair Jerome Powell reiterated the central bank\u2019s plans for more rate hikes during a panel discussion in Portugal on Wednesday.\u00a0 Powell told the European Central Bank Forum \u201cWe believe there\u2019s more restriction coming. What\u2019s really driving it … is a very strong labor market.\u201d The comments supported the Fed\u2019s plan for two more 25bps rate hikes this year.\u00a0 CME Group\u2019s FedWatch Tool currently shows 86.8% of traders betting on a rate hike at the July 26 meeting.\u00a0 Micron Rises After Earnings Beat Micron (MU) shares are rising 2.2% in premarket trade after beating fiscal Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted loss per share: $1.43 vs $1.61 expected Revenue: $3.75 billion vs $3.65 billion expected Revenue was down 57% year over year.\u00a0 For fiscal Q4, Micron forecast $3.9 billion in revenue which was in line with estimates.\u00a0 Coming Up: Pending Home Sales The National Association of Realtors reports pending home sales for May at 10:00 a.m. ET.\u00a0 That data is expected to show pending sales were unchanged last month.\u00a0 Pending sales represent the number of contracts signed to purchase a home, with those sales expected to close in 30 to 60 days.\u00a0 This is a leading indicator for existing home sales.<\/p>\n","protected":false},"author":41,"featured_media":69035,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69031","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\/69031","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=69031"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69031\/revisions"}],"predecessor-version":[{"id":69037,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69031\/revisions\/69037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69035"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}