{"id":71105,"date":"2023-09-21T09:01:55","date_gmt":"2023-09-21T13:01:55","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=71105"},"modified":"2023-09-21T09:01:55","modified_gmt":"2023-09-21T13:01:55","slug":"coffee-with-greta-fed-hangover","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/09\/21\/coffee-with-greta-fed-hangover\/","title":{"rendered":"Coffee With Greta: Fed Hangover"},"content":{"rendered":"

Register now<\/a> for next week's free trading Q&A with pro trader and Chartered Market Technician Andrew Moss!<\/strong><\/p>\n

DJIA Futures: <\/b>-208 (-0.6%)<\/span><\/p>\n

SPX Futures: <\/b>-39 (-0.9%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-191 (-1.3%)<\/span><\/p>\n

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

Futures are dropping after the Fed\u2019s hawkish rate pause on Wednesday.<\/span><\/p>\n

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

Fed Recap<\/span><\/h2>\n

The Federal Reserve left interest rates unchanged as expected on Wednesday.\u00a0<\/span><\/p>\n

The federal funds rate remains in a range of 5.25% to 5.5%.\u00a0<\/span><\/p>\n

But the Central Bank signaled it expects one more rate hike before the end of the year.\u00a0<\/span><\/p>\n

The Federal Open Market Committee\u2019s statement said \u201ceconomic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong.\u201d<\/span><\/p>\n

The Fed also released an updated Summary of Economic Projections, AKA the dot plot, which showed rates remain higher for longer.\u00a0<\/span><\/p>\n

The new dot plot shows just two rate cuts in 2024 with a terminal rate of 5.1% vs previous expectations for four cuts next year.<\/span><\/p>\n

The Fed sees a terminal rate of 3.9% at the end of 2025 and 2.9% at the end of 2026.<\/span><\/p>\n

The Central Bank also raised its projections for GDP growth to 2.1% this year and 1.5% in 2024.<\/span><\/p>\n

Weekly Jobless Claims Fall To 8-Month Low<\/span><\/h2>\n

Weekly jobless claims fell unexpectedly again in a continued sign of strength for the labor market.\u00a0<\/span><\/p>\n

The Labor Department reported 201,000 Americans filed initial claims for unemployment benefits last week.\u00a0<\/span><\/p>\n

That was down by 20,000 from the previous week and lower than expectations for claims to rise to 225,000.<\/span><\/p>\n

It was also the lowest level of weekly claims in eight months.<\/span><\/p>\n

Continuing claims fell by 26,000 to 1.66 million in the week ending September 9 vs 1.69 million expected.<\/span><\/p>\n

Key Factory Gauge Contracts<\/span><\/h2>\n

The Philadelphia Fed\u2019s manufacturing index dropped back into negative territory this month.\u00a0<\/span><\/p>\n

The index tumbled 25.5 points to -13.5 vs expectations for -0.7.\u00a0<\/span><\/p>\n

It is the 14th negative reading in the past 16 months.\u00a0<\/span><\/p>\n

The new orders index plunged 25.8 points to -10.2, shipments index dropped 8.5 points to -3.2, and unfilled orders fell 8.8 points to -13.6.<\/span><\/p>\n

High prices continued to be an issue with the prices paid index rising 4.9 points to 25.7 while the prices received index rose by 0.7 points to 14.8.<\/span><\/p>\n

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

FedEx <\/b>(FDX) shares are up 4.6% ahead of the open after beating fiscal Q1 profit expectations.<\/span><\/p>\n

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

    \n
  • Adjusted EPS: $4.55 vs $3.71 expected<\/span><\/li>\n
  • Revenue: $21.7 billion vs $21.74 billion expected<\/span><\/li>\n<\/ul>\n

    FedEx reported operating profit margins of 7.3%, better than 6% expected.\u00a0<\/span><\/p>\n

    The CEO said, \u201cFedEx is well-positioned to continue to deliver improved profitability while becoming an even more flexible, efficient, and data-driven organization.\u201d<\/span><\/p>\n

    The company forecast fiscal 2024 full-year earnings of $17 to $18.50 per share up from its previous guidance for $16.50 to $18.50.<\/span><\/p>\n

    Splunk Rallies On Cisco Deal<\/span><\/h2>\n

    Splunk <\/b>(SPLK) shares are rallying 19.6% in premarket trade after <\/span>Cisco <\/b>(CSCO) announced a deal to acquire the cybersecurity firm.<\/span><\/p>\n

    Cisco will buy Splunk for $157 per share in an all-cash deal, valuing the company at about $28 billion.<\/span><\/p>\n

    The deal is expected to close in Q3 2024.<\/span><\/p>\n

    If Cisco backs out of the deal or is forced to abandon it because of regulatory intervention, it will owe Splunk a $1.48 billion termination fee.\u00a0<\/span><\/p>\n

    If Splunk backs out, it will pay a $1 billion breakup fee to Cisco.<\/span><\/p>\n

    Cisco\u2019s chair and CEO said, \u201cFrom threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Register now for next week’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -208 (-0.6%) SPX Futures: -39 (-0.9%) NASDAQ Futures: -191 (-1.3%) Good morning friends! Futures are dropping after the Fed\u2019s hawkish rate pause on Wednesday. Let\u2019s get right to it! Fed Recap The Federal Reserve left interest rates unchanged as expected on Wednesday.\u00a0 The federal funds rate remains in a range of 5.25% to 5.5%.\u00a0 But the Central Bank signaled it expects one more rate hike before the end of the year.\u00a0 The Federal Open Market Committee\u2019s statement said \u201ceconomic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong.\u201d The Fed also released an updated Summary of Economic Projections, AKA the dot plot, which showed rates remain higher for longer.\u00a0 The new dot plot shows just two rate cuts in 2024 with a terminal rate of 5.1% vs previous expectations for four cuts next year. The Fed sees a terminal rate of 3.9% at the end of 2025 and 2.9% at the end of 2026. The Central Bank also raised its projections for GDP growth to 2.1% this year and 1.5% in 2024. Weekly Jobless Claims Fall To 8-Month Low Weekly jobless claims fell unexpectedly again in a continued sign of strength for the labor market.\u00a0 The Labor Department reported 201,000 Americans filed initial claims for unemployment benefits last week.\u00a0 That was down by 20,000 from the previous week and lower than expectations for claims to rise to 225,000. It was also the lowest level of weekly claims in eight months. Continuing claims fell by 26,000 to 1.66 million in the week ending September 9 vs 1.69 million expected. Key Factory Gauge Contracts The Philadelphia Fed\u2019s manufacturing index dropped back into negative territory this month.\u00a0 The index tumbled 25.5 points to -13.5 vs expectations for -0.7.\u00a0 It is the 14th negative reading in the past 16 months.\u00a0 The new orders index plunged 25.8 points to -10.2, shipments index dropped 8.5 points to -3.2, and unfilled orders fell 8.8 points to -13.6. High prices continued to be an issue with the prices paid index rising 4.9 points to 25.7 while the prices received index rose by 0.7 points to 14.8. FedEx Earnings Beat FedEx (FDX) shares are up 4.6% ahead of the open after beating fiscal Q1 profit expectations. Here\u2019s how the shipping giant\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $4.55 vs $3.71 expected Revenue: $21.7 billion vs $21.74 billion expected FedEx reported operating profit margins of 7.3%, better than 6% expected.\u00a0 The CEO said, \u201cFedEx is well-positioned to continue to deliver improved profitability while becoming an even more flexible, efficient, and data-driven organization.\u201d The company forecast fiscal 2024 full-year earnings of $17 to $18.50 per share up from its previous guidance for $16.50 to $18.50. Splunk Rallies On Cisco Deal Splunk (SPLK) shares are rallying 19.6% in premarket trade after Cisco (CSCO) announced a deal to acquire the cybersecurity firm. Cisco will buy Splunk for $157 per share in an all-cash deal, valuing the company at about $28 billion. The deal is expected to close in Q3 2024. If Cisco backs out of the deal or is forced to abandon it because of regulatory intervention, it will owe Splunk a $1.48 billion termination fee.\u00a0 If Splunk backs out, it will pay a $1 billion breakup fee to Cisco. Cisco\u2019s chair and CEO said, \u201cFrom threat detection and response to threat prediction and prevention, we will help make organizations of all sizes more secure and resilient.\u201d<\/p>\n","protected":false},"author":41,"featured_media":71110,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-71105","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\/71105","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=71105"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71105\/revisions"}],"predecessor-version":[{"id":71112,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71105\/revisions\/71112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/71110"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=71105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=71105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=71105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}