{"id":69580,"date":"2023-07-27T09:02:36","date_gmt":"2023-07-27T13:02:36","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69580"},"modified":"2023-07-27T09:24:40","modified_gmt":"2023-07-27T13:24:40","slug":"coffee-with-greta-hot-economy","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/07\/27\/coffee-with-greta-hot-economy\/","title":{"rendered":"Coffee With Greta: Hot Economy"},"content":{"rendered":"

Register now<\/a> for next week's free Q&A on LinkedIn with ProDesk's Derrick Oldensmith!<\/b><\/p>\n

DJIA Futures: <\/b>+133 (+0.4%)<\/span><\/p>\n

SPX Futures: <\/b>+37 (+0.8%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+219 (+1.4%)<\/span><\/p>\n

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

Futures are gaining as traders digest hot new economic data and the latest batch of big earnings.<\/span><\/p>\n

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

Q2 GDP Hotter Than Expected<\/span><\/h2>\n

The U.S. economy grew more than expected in the second quarter.\u00a0<\/span><\/p>\n

The Commerce Department\u2019s first estimate shows GDP increased at a 2.4% annualized rate vs 2% expected.\u00a0<\/span><\/p>\n

That was up from the 2% growth in Q1.\u00a0<\/span><\/p>\n

Inflation pressures were also better-than-expected during the quarter.\u00a0<\/span><\/p>\n

The personal consumption expenditures price index increased 2.6% vs 3.2% expected, down from 4.1% in Q1.\u00a0<\/span><\/p>\n

Consumer spending rose 1.6% in Q2, accounting for 68% of all economic activity during the quarter.\u00a0<\/span><\/p>\n

Gross private domestic investment increased 5.7% after dropping 11.9% in the first quarter.\u00a0<\/span><\/p>\n

Government spending increased 2.6%.<\/span><\/p>\n

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

Weekly jobless claims fell unexpectedly again last week as the labor market maintains strength.\u00a0<\/span><\/p>\n

The Labor Department reported 221,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

That was down by 7,000 from the previous week and lower than 235,000 expected.\u00a0<\/span><\/p>\n

Continuing claims also dropped by 59,000 to 1.69 million in the week ending July 15.<\/span><\/p>\n

Meta Rallies<\/span><\/h2>\n

Meta Platforms <\/b>(META) shares are rallying 9.9% ahead of the open after beating Q2 expectations and issuing strong guidance.\u00a0<\/span><\/p>\n

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

    \n
  • EPS: $2.98 vs $2.91 expected<\/span><\/li>\n
  • Revenue: $32 billion vs $31.12 billion expected<\/span><\/li>\n
  • Daily Active Users: 2.06 billion vs 2.04 billion expected<\/span><\/li>\n
  • Monthly Active Users: 3.03 billion vs 3 billion expected<\/span><\/li>\n
  • Average revenue per user $10.63 vs $10.22 expected<\/span><\/li>\n<\/ul>\n

    Revenue was up 11% year over year, the first quarter of double-digit growth since the end of 2021.\u00a0<\/span><\/p>\n

    Meta forecast Q3 revenue between $32 billion and $34.5 billion vs $31.3 billion expected.\u00a0<\/span><\/p>\n

    That figure suggests 15% growth annually.\u00a0<\/span><\/p>\n

    Chipotle Drops<\/span><\/h2>\n

    Chipotle Mexican Grill <\/b>(CMG) shares are falling 7.8% in premarket trade after missing Q2 revenue expectations.\u00a0<\/span><\/p>\n

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

      \n
    • Adjusted EPS: $12.65 vs $12.31 expected<\/span><\/li>\n
    • Revenue: $2.51 billion vs $2.53 billion expected<\/span><\/li>\n<\/ul>\n

      Revenue was up 13.6% year over year while same-store sales grew 7.4% vs 7.5% expected.\u00a0<\/span><\/p>\n

      Chipotle saw lower costs for avocados during the quarter but higher prices for tortillas, beef, and dairy still put pressure on profit.\u00a0<\/span><\/p>\n

      Despite previously saying they were done hiking prices, the CEO seemed more open to another round of prices increases in the future.\u00a0<\/span><\/p>\n

      He said, \u201cAs we get closer to that fourth quarter, we\u2019ll make a decision exactly on what we want to do on the pricing front.\u201d<\/span><\/p>\n

      Chipotle reiterated its full-year forecast.<\/span><\/p>\n

      McDonald\u2019s Beats<\/span><\/h2>\n

      McDonald\u2019s <\/b>(MCD) shares are up 1.3% ahead of the open after beating Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

        \n
      • Adjusted EPS: $3.17 vs $2.79 expected<\/span><\/li>\n
      • Revenue: $6.5 billion vs $6.27 billion expected<\/span><\/li>\n<\/ul>\n

        Global same-store sales jumped 11.7% vs 9.2% expected.\u00a0<\/span><\/p>\n

        Same-store sales in the U.S. rose 10.3%.\u00a0<\/span><\/p>\n

        Southwest Slips<\/span><\/h2>\n

        Southwest Airlines <\/b>(LUV) shares are falling 5.5% in premarket trade after missing Q2 profit expectations but beating on revenue.\u00a0<\/span><\/p>\n

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

          \n
        • Adjusted EPS: $1.09 vs $1.10 expected<\/span><\/li>\n
        • Revenue: $7.04 billion vs $6.98 billion expected<\/span><\/li>\n<\/ul>\n

          Profit tumbled 10% year over year while total revenue rose 4.6%.\u00a0<\/span><\/p>\n

          But Southwest\u2019s unit revenue dropped 8.3% from a year ago and the company said it expects unit revenue to fall as much as 7% in Q3 despite capacity being 12% higher.<\/span><\/p>\n

          Southwest\u2019s operating expenses also jumped more than 12%.<\/span><\/p>\n

          Excluding fuel, those expenses were up 7.5%.<\/span><\/p>\n

          In Case You Missed It<\/span><\/h2>\n
            \n
          • The Federal Reserve raised the federal funds rate on Wednesday by 25 basis points as expected. That puts the benchmark rate in a range of 5.25% to 5.5% \u2013 the highest since March 2001. The Fed reiterated it will remain \u201cdata dependent\u201d in future meetings and Chairman Jerome Powell said they could either raise rates again or leave them unchanged in September.\u00a0<\/span><\/li>\n
          • New home sales dropped unexpectedly in June. The Census Bureau reported new home sales fell 2.5% last month to a seasonally adjusted annual rate of 697,000 units vs 725,000 expected. New home sales in May were also revised lower to 715,000 units from 763,000 previously.\u00a0<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            Register now for next week’s free Q&A on LinkedIn with ProDesk’s Derrick Oldensmith! DJIA Futures: +133 (+0.4%) SPX Futures: +37 (+0.8%) NASDAQ Futures: +219 (+1.4%) Good morning friends! Futures are gaining as traders digest hot new economic data and the latest batch of big earnings. Let\u2019s get right to it! Q2 GDP Hotter Than Expected The U.S. economy grew more than expected in the second quarter.\u00a0 The Commerce Department\u2019s first estimate shows GDP increased at a 2.4% annualized rate vs 2% expected.\u00a0 That was up from the 2% growth in Q1.\u00a0 Inflation pressures were also better-than-expected during the quarter.\u00a0 The personal consumption expenditures price index increased 2.6% vs 3.2% expected, down from 4.1% in Q1.\u00a0 Consumer spending rose 1.6% in Q2, accounting for 68% of all economic activity during the quarter.\u00a0 Gross private domestic investment increased 5.7% after dropping 11.9% in the first quarter.\u00a0 Government spending increased 2.6%. Weekly Jobless Claims Fall Weekly jobless claims fell unexpectedly again last week as the labor market maintains strength.\u00a0 The Labor Department reported 221,000 Americans filed initial claims for unemployment benefits.\u00a0 That was down by 7,000 from the previous week and lower than 235,000 expected.\u00a0 Continuing claims also dropped by 59,000 to 1.69 million in the week ending July 15. Meta Rallies Meta Platforms (META) shares are rallying 9.9% ahead of the open after beating Q2 expectations and issuing strong guidance.\u00a0 Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 estimates: EPS: $2.98 vs $2.91 expected Revenue: $32 billion vs $31.12 billion expected Daily Active Users: 2.06 billion vs 2.04 billion expected Monthly Active Users: 3.03 billion vs 3 billion expected Average revenue per user $10.63 vs $10.22 expected Revenue was up 11% year over year, the first quarter of double-digit growth since the end of 2021.\u00a0 Meta forecast Q3 revenue between $32 billion and $34.5 billion vs $31.3 billion expected.\u00a0 That figure suggests 15% growth annually.\u00a0 Chipotle Drops Chipotle Mexican Grill (CMG) shares are falling 7.8% in premarket trade after missing Q2 revenue expectations.\u00a0 Here\u2019s how the restaurant chain\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $12.65 vs $12.31 expected Revenue: $2.51 billion vs $2.53 billion expected Revenue was up 13.6% year over year while same-store sales grew 7.4% vs 7.5% expected.\u00a0 Chipotle saw lower costs for avocados during the quarter but higher prices for tortillas, beef, and dairy still put pressure on profit.\u00a0 Despite previously saying they were done hiking prices, the CEO seemed more open to another round of prices increases in the future.\u00a0 He said, \u201cAs we get closer to that fourth quarter, we\u2019ll make a decision exactly on what we want to do on the pricing front.\u201d Chipotle reiterated its full-year forecast. McDonald\u2019s Beats McDonald\u2019s (MCD) shares are up 1.3% ahead of the open after beating Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the fast food chain\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $3.17 vs $2.79 expected Revenue: $6.5 billion vs $6.27 billion expected Global same-store sales jumped 11.7% vs 9.2% expected.\u00a0 Same-store sales in the U.S. rose 10.3%.\u00a0 Southwest Slips Southwest Airlines (LUV) shares are falling 5.5% in premarket trade after missing Q2 profit expectations but beating on revenue.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1.09 vs $1.10 expected Revenue: $7.04 billion vs $6.98 billion expected Profit tumbled 10% year over year while total revenue rose 4.6%.\u00a0 But Southwest\u2019s unit revenue dropped 8.3% from a year ago and the company said it expects unit revenue to fall as much as 7% in Q3 despite capacity being 12% higher. Southwest\u2019s operating expenses also jumped more than 12%. Excluding fuel, those expenses were up 7.5%. In Case You Missed It The Federal Reserve raised the federal funds rate on Wednesday by 25 basis points as expected. That puts the benchmark rate in a range of 5.25% to 5.5% \u2013 the highest since March 2001. The Fed reiterated it will remain \u201cdata dependent\u201d in future meetings and Chairman Jerome Powell said they could either raise rates again or leave them unchanged in September.\u00a0 New home sales dropped unexpectedly in June. The Census Bureau reported new home sales fell 2.5% last month to a seasonally adjusted annual rate of 697,000 units vs 725,000 expected. New home sales in May were also revised lower to 715,000 units from 763,000 previously.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":69585,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69580","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\/69580","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=69580"}],"version-history":[{"count":4,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69580\/revisions"}],"predecessor-version":[{"id":69592,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69580\/revisions\/69592"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69585"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}