{"id":70899,"date":"2023-09-06T09:04:42","date_gmt":"2023-09-06T13:04:42","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=70899"},"modified":"2023-09-06T09:04:42","modified_gmt":"2023-09-06T13:04:42","slug":"coffee-with-greta-continued-weakness","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/09\/06\/coffee-with-greta-continued-weakness\/","title":{"rendered":"Coffee With Greta: Continued Weakness"},"content":{"rendered":"

Register now<\/a> for today's free trading Q&A on LinkedIn with me and Sami Abusaad!<\/strong><\/p>\n

DJIA Futures: <\/b>-82 (-0.2%)<\/span><\/p>\n

SPX Futures: <\/b>-11 (-0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-41 (-0.3%)<\/span><\/p>\n

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

Futures are slipping, adding to Tuesday\u2019s losses.\u00a0<\/span><\/p>\n

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

Boston Fed President Comments On Rates<\/span><\/h2>\n

Boston Fed President Susan Collins is calling for a patient approach to future monetary policy.\u00a0<\/span><\/p>\n

In a speech this morning, Collins said the Fed may be \u201cnear or even at the peak\u201d for interest rates.<\/span><\/p>\n

But she said more hikes may be needed depending on future data.\u00a0<\/span><\/p>\n

Collins said, \u201cOverall, we are well positioned to proceed cautiously in this uncertain economic environment, recognizing the risks while remaining resolute and data-dependent, with the flexibility to adjust as conditions warrant.\u201d<\/span><\/p>\n

These comments align with other recent Fed statements which have all supported remaining data dependent.\u00a0<\/span><\/p>\n

Collins said, \u201cThere are promising developments, but given the continued strength in demand, my view is that it is just too early to take the recent improvements as evidence that inflation is on a sustained path back to 2%.\u201d<\/span><\/p>\n

CME Group\u2019s FedWatch Tool shows 93% of traders expect no rate hike on September 20 with the market split on the possibility of one last hike on November 1.<\/span><\/p>\n

Roku Rallies After Layoff Announcement<\/span><\/h2>\n

Roki <\/b>(ROKU) shares are up 9.3% ahead of the open after announcing plans to lay off 10% of its staff.\u00a0<\/span><\/p>\n

The company announced that move in a new SEC filing this morning.\u00a0<\/span><\/p>\n

Roku\u2019s cost-cutting efforts also include consolidating office space, reviewing its content portfolio, and reducing outside services expenses.<\/span><\/p>\n

The company also hiked its Q3 revenue guidance, now expecting $835 million to $875 million vs $815 million previously.\u00a0<\/span><\/p>\n

Southwest Slips On Weak Bookings<\/span><\/h2>\n

Southwest Airlines <\/b>(LUV) shares are down 3.6% in premarket trade\u00a0 after reporting weak leisure bookings in August.\u00a0<\/span><\/p>\n

The airline said those bookings were on the lower-end of its expectations and cut its Q3 outlook in response.\u00a0<\/span><\/p>\n

Southwest now expects revenue per available seat mile to decline year over year by 5% to 7% vs 3% to 7% previously.\u00a0<\/span><\/p>\n

The airline also expects fuel costs to be higher in the quarter, forecasting $2.70 to $2.80 per gallon vs $2.55 to $2.65 previously.\u00a0<\/span><\/p>\n

Southwest did say it booked record revenue for Labor Day weekend and in a statement said, \u201cthe Company continues to expect record third quarter operating revenues.”\u00a0<\/span><\/p>\n

Mortgage Demand Drops<\/span><\/h2>\n

Mortgage demand fell to a 27-year low last week despite rates pulling back for the first time in weeks.\u00a0<\/span><\/p>\n

The Mortgage Bankers Association reported total application volume fell 2.9% from the previous week, to the lowest level since December 1996.\u00a0<\/span><\/p>\n

Purchase applications fell 2% weekly and 28% year over year while refinance applications were down 5% weekly and 30% annually.\u00a0<\/span><\/p>\n

The average 30-year fixed contract rate slipped to 7.21% from 7.31% the previous week.\u00a0<\/span><\/p>\n

That was the first decline in several weeks but rates remained more than a full percentage point higher than a year ago.<\/span><\/p>\n

Trade Deficit Widens Less Than Expected<\/span><\/h2>\n

The U.S. trade gap widened less than expected in July.\u00a0<\/span><\/p>\n

The Commerce Department reported the deficit rose 2% to $65 billion.\u00a0<\/span><\/p>\n

The was lower than expectations for $68 billion.\u00a0<\/span><\/p>\n

The June deficit was also revised lower from $65.5 billion to $63.7 billion.\u00a0<\/span><\/p>\n

Both exports and imports rose in July.\u00a0<\/span><\/p>\n

Exports were up 1.6% to $251.7 billion, the first gain in three months.\u00a0<\/span><\/p>\n

Imports rose 1.7% to $316.7 billion.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Register now for today’s free trading Q&A on LinkedIn with me and Sami Abusaad! DJIA Futures: -82 (-0.2%) SPX Futures: -11 (-0.3%) NASDAQ Futures: -41 (-0.3%) Good morning friends! Futures are slipping, adding to Tuesday\u2019s losses.\u00a0 Let\u2019s get right to it! Boston Fed President Comments On Rates Boston Fed President Susan Collins is calling for a patient approach to future monetary policy.\u00a0 In a speech this morning, Collins said the Fed may be \u201cnear or even at the peak\u201d for interest rates. But she said more hikes may be needed depending on future data.\u00a0 Collins said, \u201cOverall, we are well positioned to proceed cautiously in this uncertain economic environment, recognizing the risks while remaining resolute and data-dependent, with the flexibility to adjust as conditions warrant.\u201d These comments align with other recent Fed statements which have all supported remaining data dependent.\u00a0 Collins said, \u201cThere are promising developments, but given the continued strength in demand, my view is that it is just too early to take the recent improvements as evidence that inflation is on a sustained path back to 2%.\u201d CME Group\u2019s FedWatch Tool shows 93% of traders expect no rate hike on September 20 with the market split on the possibility of one last hike on November 1. Roku Rallies After Layoff Announcement Roki (ROKU) shares are up 9.3% ahead of the open after announcing plans to lay off 10% of its staff.\u00a0 The company announced that move in a new SEC filing this morning.\u00a0 Roku\u2019s cost-cutting efforts also include consolidating office space, reviewing its content portfolio, and reducing outside services expenses. The company also hiked its Q3 revenue guidance, now expecting $835 million to $875 million vs $815 million previously.\u00a0 Southwest Slips On Weak Bookings Southwest Airlines (LUV) shares are down 3.6% in premarket trade\u00a0 after reporting weak leisure bookings in August.\u00a0 The airline said those bookings were on the lower-end of its expectations and cut its Q3 outlook in response.\u00a0 Southwest now expects revenue per available seat mile to decline year over year by 5% to 7% vs 3% to 7% previously.\u00a0 The airline also expects fuel costs to be higher in the quarter, forecasting $2.70 to $2.80 per gallon vs $2.55 to $2.65 previously.\u00a0 Southwest did say it booked record revenue for Labor Day weekend and in a statement said, \u201cthe Company continues to expect record third quarter operating revenues.”\u00a0 Mortgage Demand Drops Mortgage demand fell to a 27-year low last week despite rates pulling back for the first time in weeks.\u00a0 The Mortgage Bankers Association reported total application volume fell 2.9% from the previous week, to the lowest level since December 1996.\u00a0 Purchase applications fell 2% weekly and 28% year over year while refinance applications were down 5% weekly and 30% annually.\u00a0 The average 30-year fixed contract rate slipped to 7.21% from 7.31% the previous week.\u00a0 That was the first decline in several weeks but rates remained more than a full percentage point higher than a year ago. Trade Deficit Widens Less Than Expected The U.S. trade gap widened less than expected in July.\u00a0 The Commerce Department reported the deficit rose 2% to $65 billion.\u00a0 The was lower than expectations for $68 billion.\u00a0 The June deficit was also revised lower from $65.5 billion to $63.7 billion.\u00a0 Both exports and imports rose in July.\u00a0 Exports were up 1.6% to $251.7 billion, the first gain in three months.\u00a0 Imports rose 1.7% to $316.7 billion.<\/p>\n","protected":false},"author":41,"featured_media":70906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-70899","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\/70899","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=70899"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/70899\/revisions"}],"predecessor-version":[{"id":70907,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/70899\/revisions\/70907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/70906"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=70899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=70899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=70899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}