{"id":69632,"date":"2023-08-02T09:08:44","date_gmt":"2023-08-02T13:08:44","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69632"},"modified":"2023-08-02T09:08:44","modified_gmt":"2023-08-02T13:08:44","slug":"coffee-with-greta-us-downgraded","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/08\/02\/coffee-with-greta-us-downgraded\/","title":{"rendered":"Coffee With Greta: U.S. Downgraded"},"content":{"rendered":"

Register now<\/a> for today's free Q&A event on LinkedIn with T3's Senior Trader Derrick Oldensmith!<\/b><\/p>\n

DJIA Futures: <\/b>-150 (-0.4%)<\/span><\/p>\n

SPX Futures: <\/b>-27 (-0.6%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-127 (-0.8%)<\/span><\/p>\n

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

Futures are falling after the U.S. credit rating was downgraded overnight.<\/span><\/p>\n

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

Fitch Downgrades U.S.<\/span><\/h2>\n

Global credit rating agency Fitch Ratings downgraded the United States to AA+ from AAA on Tuesday.\u00a0<\/span><\/p>\n

Fitch cited \u201cexpected fiscal deterioration over the next three years\u201d as the reason for that move after putting the U.S. on negative watch in May amid the debt ceiling fight.\u00a0<\/span><\/p>\n

The agency said, \u201cThe repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.\u201d<\/span><\/p>\n

This is only the second time the U.S. has been downgraded by a credit rating agency.\u00a0<\/span><\/p>\n

S&P cut the nation\u2019s rating from AAA to AA+ in 2011 amid a similar debt ceiling fight.<\/span><\/p>\n

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

The U.S. private sector added far more jobs than expected in July.\u00a0<\/span><\/p>\n

ADP reported private employers added 324,000 jobs last month vs 175,000 expected.<\/span><\/p>\n

But it was still a slowdown from 455,000 in June.\u00a0<\/span><\/p>\n

The services sector as a whole added 303,000 jobs, led by leisure and hospitality which gained 201,000.<\/span><\/p>\n

The goods producing sector added just 21,000 as natural resources and mining grew by 48,000 but manufacturing lost 36,000.\u00a0<\/span><\/p>\n

The Labor Department releases the official July jobs report on Friday which is expected to show the economy added just 200,000 jobs with the unemployment rate unchanged at 3.6%.<\/span><\/p>\n

AMD Earnings Beat<\/span><\/h2>\n

Advanced Micro Devices <\/b>(AMD) shares up 2.5% ahead of the open after beating Q2 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 EPS: $0.58 vs $0.57 expected<\/span><\/li>\n
  • Revenue: $5.36 billion vs $5.31 billion expected<\/span><\/li>\n<\/ul>\n

    Despite the beat, revenue was down 18% year over year.\u00a0<\/span><\/p>\n

    AMD is seeing falling demand in its PC business but says it expects AI to boost its sales in the future.\u00a0<\/span><\/p>\n

    The company is one of few that makes the high-end graphics processing units needed for AI.\u00a0<\/span><\/p>\n

    AMD forecast Q3 revenue of $5.7 billion vs $5.81 billion expected by analysts.<\/span><\/p>\n

    Starbucks Sales Disappoint\u00a0<\/span><\/h2>\n

    Starbucks <\/b>(SBUX) shares are falling 0.9% in premarket trade after missing Q2 sales expectations.\u00a0<\/span><\/p>\n

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

      \n
    • Adjusted EPS: $1 vs $0.95 expected<\/span><\/li>\n
    • Revenue: $9.17 billion vs $9.29 billion expected<\/span><\/li>\n<\/ul>\n

      Total same-store sales grew 10% year over year vs 11% expected.\u00a0<\/span><\/p>\n

      North American same-store sales also missed estimates, up 7% vs 8.4% expected.<\/span><\/p>\n

      Pinterest Expenses Soar<\/span><\/h2>\n

      Pinterest <\/b>(PINS) shares are dropping 4% ahead of the open despite beating Q2 expectations as expenses jumped sharply.\u00a0<\/span><\/p>\n

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

        \n
      • Adjusted EPS: $0.21 vs $0.12 expected<\/span><\/li>\n
      • Revenue: $708 million vs $696 million expected<\/span><\/li>\n<\/ul>\n

        Sales were up 6% year over year but total costs and expenses jumped 11%.<\/span><\/p>\n

        Global monthly active users rose 8% year over year to 465 million during the quarter.\u00a0<\/span><\/p>\n

        Pinterest said it expects Q3 revenue growth \u201cin the high single digits range year over year\u201d.<\/span><\/p>\n

        E.L.F. Surges<\/span><\/h2>\n

        e.l.f. Beauty <\/b>(ELF) shares are surging 15.9% in premarket trade after beating fiscal Q1 expectations and hiking its outlook.\u00a0<\/span><\/p>\n

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

          \n
        • Adjusted EPS: $1.10 vs $0.57 expected<\/span><\/li>\n
        • Revenue: $216.3 million vs $185 million expected<\/span><\/li>\n<\/ul>\n

          For fiscal 2024, Elf now expects between $792 million and $802 million in revenue vs $705 million to $720 million previously.\u00a0<\/span><\/p>\n

          The company forecast full-year adjusted EPS between $2.19 and $2.22 vs $1.73 to $1.76 previously.\u00a0<\/span><\/p>\n

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

          CVS Health <\/b>(CVS) shares are down 2.2% ahead of the open despite beating Q2 expectations.\u00a0<\/span><\/p>\n

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

            \n
          • Adjusted EPS: $2.21 vs $2.11 expected<\/span><\/li>\n
          • Revenue: $88.9 billion vs $86.5 billion expected<\/span><\/li>\n<\/ul>\n

            Net income dropped 37% year over year while revenue rose 10%.\u00a0<\/span><\/p>\n

            CVS maintained its full-year outlook as it continues cost cutting efforts.<\/span><\/p>\n

            In Case You Missed It<\/span><\/h2>\n
              \n
            • Ford Motor <\/b>(F) shares rose 1.6% on Tuesday after the automaker reopened its F-150 Lightning factory. The facility had been closed for six weeks for upgrades. Ford also said recent price cuts on the Lightning had significantly increased demand. The EV unit\u2019s chief customer officer said the company has \u201cabout 45 days\u2019 worth\u201d of orders for the electric truck.<\/span><\/li>\n
            • Job openings fell unexpectedly in June. The Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday showed there were 9.58 million available jobs for the month. That was a decrease from the downwardly revised 9.62 million in May and lower than 9.7 million expected. It was the lowest level of job openings since April 2021. Layoffs also fell to 1.53 million in June from 1.55 million in May.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              Register now for today’s free Q&A event on LinkedIn with T3’s Senior Trader Derrick Oldensmith! DJIA Futures: -150 (-0.4%) SPX Futures: -27 (-0.6%) NASDAQ Futures: -127 (-0.8%) Good morning friends! Futures are falling after the U.S. credit rating was downgraded overnight. Let\u2019s get right to it! Fitch Downgrades U.S. Global credit rating agency Fitch Ratings downgraded the United States to AA+ from AAA on Tuesday.\u00a0 Fitch cited \u201cexpected fiscal deterioration over the next three years\u201d as the reason for that move after putting the U.S. on negative watch in May amid the debt ceiling fight.\u00a0 The agency said, \u201cThe repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.\u201d This is only the second time the U.S. has been downgraded by a credit rating agency.\u00a0 S&P cut the nation\u2019s rating from AAA to AA+ in 2011 amid a similar debt ceiling fight. Private Job Growth Booms The U.S. private sector added far more jobs than expected in July.\u00a0 ADP reported private employers added 324,000 jobs last month vs 175,000 expected. But it was still a slowdown from 455,000 in June.\u00a0 The services sector as a whole added 303,000 jobs, led by leisure and hospitality which gained 201,000. The goods producing sector added just 21,000 as natural resources and mining grew by 48,000 but manufacturing lost 36,000.\u00a0 The Labor Department releases the official July jobs report on Friday which is expected to show the economy added just 200,000 jobs with the unemployment rate unchanged at 3.6%. AMD Earnings Beat Advanced Micro Devices (AMD) shares up 2.5% ahead of the open after beating Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.58 vs $0.57 expected Revenue: $5.36 billion vs $5.31 billion expected Despite the beat, revenue was down 18% year over year.\u00a0 AMD is seeing falling demand in its PC business but says it expects AI to boost its sales in the future.\u00a0 The company is one of few that makes the high-end graphics processing units needed for AI.\u00a0 AMD forecast Q3 revenue of $5.7 billion vs $5.81 billion expected by analysts. Starbucks Sales Disappoint\u00a0 Starbucks (SBUX) shares are falling 0.9% in premarket trade after missing Q2 sales expectations.\u00a0 Here\u2019s how the coffee chain\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1 vs $0.95 expected Revenue: $9.17 billion vs $9.29 billion expected Total same-store sales grew 10% year over year vs 11% expected.\u00a0 North American same-store sales also missed estimates, up 7% vs 8.4% expected. Pinterest Expenses Soar Pinterest (PINS) shares are dropping 4% ahead of the open despite beating Q2 expectations as expenses jumped sharply.\u00a0 Here\u2019s how the social media company\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.21 vs $0.12 expected Revenue: $708 million vs $696 million expected Sales were up 6% year over year but total costs and expenses jumped 11%. Global monthly active users rose 8% year over year to 465 million during the quarter.\u00a0 Pinterest said it expects Q3 revenue growth \u201cin the high single digits range year over year\u201d. E.L.F. Surges e.l.f. Beauty (ELF) shares are surging 15.9% in premarket trade after beating fiscal Q1 expectations and hiking its outlook.\u00a0 Here\u2019s how the beauty company\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $1.10 vs $0.57 expected Revenue: $216.3 million vs $185 million expected For fiscal 2024, Elf now expects between $792 million and $802 million in revenue vs $705 million to $720 million previously.\u00a0 The company forecast full-year adjusted EPS between $2.19 and $2.22 vs $1.73 to $1.76 previously.\u00a0 CVS Slips CVS Health (CVS) shares are down 2.2% ahead of the open despite beating Q2 expectations.\u00a0 Here\u2019s how the pharmacy giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.21 vs $2.11 expected Revenue: $88.9 billion vs $86.5 billion expected Net income dropped 37% year over year while revenue rose 10%.\u00a0 CVS maintained its full-year outlook as it continues cost cutting efforts. In Case You Missed It Ford Motor (F) shares rose 1.6% on Tuesday after the automaker reopened its F-150 Lightning factory. The facility had been closed for six weeks for upgrades. Ford also said recent price cuts on the Lightning had significantly increased demand. The EV unit\u2019s chief customer officer said the company has \u201cabout 45 days\u2019 worth\u201d of orders for the electric truck. Job openings fell unexpectedly in June. The Labor Department\u2019s Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday showed there were 9.58 million available jobs for the month. That was a decrease from the downwardly revised 9.62 million in May and lower than 9.7 million expected. It was the lowest level of job openings since April 2021. Layoffs also fell to 1.53 million in June from 1.55 million in May.<\/p>\n","protected":false},"author":41,"featured_media":69640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69632","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\/69632","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=69632"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69632\/revisions"}],"predecessor-version":[{"id":69642,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69632\/revisions\/69642"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69640"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}