{"id":70933,"date":"2023-09-07T08:59:49","date_gmt":"2023-09-07T12:59:49","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=70933"},"modified":"2023-09-07T08:59:49","modified_gmt":"2023-09-07T12:59:49","slug":"coffee-with-greta-focus-on-rates","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/09\/07\/coffee-with-greta-focus-on-rates\/","title":{"rendered":"Coffee With Greta: Focus On Rates"},"content":{"rendered":"

Register now<\/a> for next week's free trading Q&A on LinkedIn with me and JR Romero!<\/strong><\/p>\n

DJIA Futures: <\/b>-86 (-0.3%)<\/span><\/p>\n

SPX Futures: <\/b>-33 (-0.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-197 (-1.3%)<\/span><\/p>\n

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

Futures are falling as traders remain focused on interest rates.<\/span><\/p>\n

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

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

Weekly jobs claims fell unexpectedly again last week.\u00a0<\/span><\/p>\n

The Labor Department reported 216,000 Americans filed initial claims for unemployment benefits.\u00a0<\/span><\/p>\n

That was down by 12,000 from the week before and lower than expectations for claims to rise to 233,000.<\/span><\/p>\n

It was the lowest level of claims since February.<\/span><\/p>\n

Continuing claims fell by 36,000 to 1.68 million in the week ending August 26 vs 1.72 million expected.<\/span><\/p>\n

Q2 Productivity Revised Down, Labor Costs Revised Up<\/span><\/h2>\n

Unit labor costs during the second quarter were revised higher while worker productivity was revised down.\u00a0<\/span><\/p>\n

The Bureau of Labor Statistics reported labor costs rose 2.2% in Q2, up from the first estimate of 1.6%.\u00a0<\/span><\/p>\n

That was down from the 3.3% increase in Q1.\u00a0<\/span><\/p>\n

The higher costs included a 5.7% increase in hourly compensation.<\/span><\/p>\n

Q2 productivity increased 3.5%, down from the 3.7% initial estimate and lower than 3.8% expected.\u00a0<\/span><\/p>\n

That change included a 0.5% downward revision to output and 0.2% downward revision to hours worked.<\/span><\/p>\n

GameStop Drops Despite Earnings Beat<\/span><\/h2>\n

GameStop <\/b>(GME) shares are down 1.9% ahead of the open despite beating\u00a0 Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

    \n
  • Loss per share: $0.03 vs $0.14 expected<\/span><\/li>\n
  • Revenue: $1.16 billion vs $1.14 billion expected<\/span><\/li>\n<\/ul>\n

    GameStop\u2019s expenses decreased to 27.7% of net sales vs 34.1% a year ago.\u00a0<\/span><\/p>\n

    The stock originally jumped in after-hours trading after the results on Wednesday but has since pulled back.<\/span><\/p>\n

    AI Plunges<\/span><\/h2>\n

    C3.ai <\/b>(AI) shares are tumbling 13.3% in premarket trade after beating fiscal Q1 expectations but issuing weak guidance.\u00a0<\/span><\/p>\n

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

      \n
    • Adjusted loss per share: $0.09 vs $0.17 expected<\/span><\/li>\n
    • Revenue: $72.4 million vs $71.6 million<\/span><\/li>\n<\/ul>\n

      For the fiscal second-quarter, C3.ai called for an operating loss between $27 million and $40 million.\u00a0<\/span><\/p>\n

      That was sharply higher than analysts\u2019 expectations for a $26.6 million loss.<\/span><\/p>\n

      The company also withdrew its forecast to reach non-GAAP profitability by the end of this fiscal year.\u00a0<\/span><\/p>\n

      The CEO said, \u201cAfter careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions.\u201d<\/span><\/p>\n

      In Case You Missed It<\/span><\/h2>\n
        \n
      • The Fed\u2019s latest Beige Book was released Wednesday afternoon, saying, \u201cContacts from most Districts indicated economic growth was modest during July and August.\u201d Consumer spending on tourism was stronger than expected during the period while other spending slowed. The survey said job growth was subdued across the nation and most districts expect wage growth to slow broadly in the months ahead. Respondents said price growth slowed overall as businesses struggle to pass along cost pressures to consumers. That resulted in lower profit margins across several districts.<\/span><\/li>\n<\/ul>\n
          \n
        • Activity in the U.S. services sector was stronger than expected in August. The Institute for Supply Management\u2019s services PMI rose unexpectedly to 54.5% last month vs 52.5% expected. That reading was up by 1.8% from July. It was the eight consecutive month of positive readings, with any reading above 50 signaling growth in the sector. The business activity index rose 0.2% to 57.3% and the new orders index increased 2.5% to 57.5%.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

          Register now for next week’s free trading Q&A on LinkedIn with me and JR Romero! DJIA Futures: -86 (-0.3%) SPX Futures: -33 (-0.7%) NASDAQ Futures: -197 (-1.3%) Good morning friends! Futures are falling as traders remain focused on interest rates. Let\u2019s get right to it! Weekly Jobless Claims Drop Weekly jobs claims fell unexpectedly again last week.\u00a0 The Labor Department reported 216,000 Americans filed initial claims for unemployment benefits.\u00a0 That was down by 12,000 from the week before and lower than expectations for claims to rise to 233,000. It was the lowest level of claims since February. Continuing claims fell by 36,000 to 1.68 million in the week ending August 26 vs 1.72 million expected. Q2 Productivity Revised Down, Labor Costs Revised Up Unit labor costs during the second quarter were revised higher while worker productivity was revised down.\u00a0 The Bureau of Labor Statistics reported labor costs rose 2.2% in Q2, up from the first estimate of 1.6%.\u00a0 That was down from the 3.3% increase in Q1.\u00a0 The higher costs included a 5.7% increase in hourly compensation. Q2 productivity increased 3.5%, down from the 3.7% initial estimate and lower than 3.8% expected.\u00a0 That change included a 0.5% downward revision to output and 0.2% downward revision to hours worked. GameStop Drops Despite Earnings Beat GameStop (GME) shares are down 1.9% ahead of the open despite beating\u00a0 Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the video game retailer\u2019s results compared to analysts\u2019 estimates:\u00a0 Loss per share: $0.03 vs $0.14 expected Revenue: $1.16 billion vs $1.14 billion expected GameStop\u2019s expenses decreased to 27.7% of net sales vs 34.1% a year ago.\u00a0 The stock originally jumped in after-hours trading after the results on Wednesday but has since pulled back. AI Plunges C3.ai (AI) shares are tumbling 13.3% in premarket trade after beating fiscal Q1 expectations but issuing weak guidance.\u00a0 Here\u2019s how the artificial intelligence software company\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted loss per share: $0.09 vs $0.17 expected Revenue: $72.4 million vs $71.6 million For the fiscal second-quarter, C3.ai called for an operating loss between $27 million and $40 million.\u00a0 That was sharply higher than analysts\u2019 expectations for a $26.6 million loss. The company also withdrew its forecast to reach non-GAAP profitability by the end of this fiscal year.\u00a0 The CEO said, \u201cAfter careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions.\u201d In Case You Missed It The Fed\u2019s latest Beige Book was released Wednesday afternoon, saying, \u201cContacts from most Districts indicated economic growth was modest during July and August.\u201d Consumer spending on tourism was stronger than expected during the period while other spending slowed. The survey said job growth was subdued across the nation and most districts expect wage growth to slow broadly in the months ahead. Respondents said price growth slowed overall as businesses struggle to pass along cost pressures to consumers. That resulted in lower profit margins across several districts. Activity in the U.S. services sector was stronger than expected in August. The Institute for Supply Management\u2019s services PMI rose unexpectedly to 54.5% last month vs 52.5% expected. That reading was up by 1.8% from July. It was the eight consecutive month of positive readings, with any reading above 50 signaling growth in the sector. The business activity index rose 0.2% to 57.3% and the new orders index increased 2.5% to 57.5%.<\/p>\n","protected":false},"author":41,"featured_media":70937,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-70933","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\/70933","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=70933"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/70933\/revisions"}],"predecessor-version":[{"id":70939,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/70933\/revisions\/70939"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/70937"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=70933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=70933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=70933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}