{"id":71341,"date":"2023-09-27T09:03:09","date_gmt":"2023-09-27T13:03:09","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=71341"},"modified":"2023-09-27T09:03:09","modified_gmt":"2023-09-27T13:03:09","slug":"coffee-with-greta-yields-down-stocks-up","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/09\/27\/coffee-with-greta-yields-down-stocks-up\/","title":{"rendered":"Coffee With Greta: Yields Down, Stocks Up"},"content":{"rendered":"

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

DJIA Futures: <\/b>+99 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+17 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+55 (+0.4%)<\/span><\/p>\n

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

Futures are rising as traders attempt a bounce back from Tuesday\u2019s losses.<\/span><\/p>\n

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

Yields Down, Stocks Up<\/span><\/h2>\n

Treasury yields are falling this morning with stocks rising.\u00a0<\/span><\/p>\n

The 2-year yield is down 1 basis point at 5.07% while the 10-year yield is down 4 basis points at 4.49%.\u00a0<\/span><\/p>\n

The recent increase in rates has put pressure on equities with the <\/span>Dow <\/b>logging its worst day since March on Tuesday.<\/span><\/p>\n

So far in September, the Dow is down 3.2%, the <\/span>S&P 500 <\/b>has dropped 5.2%, and the <\/span>Nasdaq <\/b>has tumbled nearly 7%.<\/span><\/p>\n

Costco Tops Fiscal Q4 Expectations<\/span><\/h2>\n

Costco <\/b>(COST) shares are slipping 1.9% ahead of the open despite beating fiscal Q4 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

Here\u2019s how the warehouse-club\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

    \n
  • EPS: $4.86 vs $4.79 expected<\/span><\/li>\n
  • Revenue: $78.9 billion vs $77.9 billion expected<\/span><\/li>\n<\/ul>\n

    Total comparable sales rose 1.1% year over year but just 0.2% in the U.S.<\/span><\/p>\n

    Excluding gas, comparable sales rose 3.8% overall and 3.1% in the U.S.<\/span><\/p>\n

    Costco\u2019s average transaction amount during the quarter dropped nearly 4% globally and 4.5% in the U.S.\u00a0<\/span><\/p>\n

    The company had 71 million paid household members at the end of the quarter, up nearly 8% from a year ago.<\/span><\/p>\n

    The CFO highlighted a shift in consumer spending away from discretionary items like furniture, small electronics, and jewelry.\u00a0<\/span><\/p>\n

    That contributed to the 0.8% decline in e-commerce sales during the quarter.\u00a0<\/span><\/p>\n

    Durable Goods Orders Climb Unexpectedly<\/span><\/h2>\n

    Durable goods orders rose unexpectedly in August, boosted by strong defense spending.\u00a0<\/span><\/p>\n

    The Census Bureau reported orders rose 0.2% last month vs expectations for a 0.5% decline.\u00a0<\/span><\/p>\n

    Defense spending was higher during the month as the U.S. worked to replenish military hardware that has been sent to Ukraine.\u00a0<\/span><\/p>\n

    Durable goods orders minus defense fell 0.7%.<\/span><\/p>\n

    Durable goods orders excluding transportation rose 0.4%.<\/span><\/p>\n

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

    Mortgage demand fell last week as rates hit a 23-year high.\u00a0<\/span><\/p>\n

    The Mortgage Bankers Association reported total application volume fell 1.3% weekly and 25.5% year over year.\u00a0<\/span><\/p>\n

    Purchase applications fell 2% weekly and 27% annually.\u00a0<\/span><\/p>\n

    Refinance applications were down 1% weekly and 21% lower than a year ago.<\/span><\/p>\n

    The average 30-year fixed contract rate rose to 7.41% from 7.31%, the highest since the year 2000.<\/span><\/p>\n

    In Case You Missed It<\/span><\/h2>\n
      \n
    • New home sales fell more than expected in August. The Census Bureau reported new sales dropped 8.7% to a seasonally adjusted annual rate of 675,000 units vs 695,000 expected. July\u2019s new home sales were also revised higher to 739,000. New home sales have fallen to the lowest level since March 2023 as mortgage rates remain well-above 7%.\u00a0<\/span><\/li>\n
    • Consumer confidence tumbled to a four-month low this month. The Conference Board\u2019s consumer confidence index dropped 5.7 points to 103 vs 105.5 expected. Confidence in current economic conditions rose 0.4 points to 147.1. But the six month expectations index dropped 9.6 points to 73.7. That was below the 80 mark that\u2019s know as a recession signal.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

      Register now for today’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: +99 (+0.3%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +55 (+0.4%) Good morning friends! Futures are rising as traders attempt a bounce back from Tuesday\u2019s losses. Let\u2019s get right to it! Yields Down, Stocks Up Treasury yields are falling this morning with stocks rising.\u00a0 The 2-year yield is down 1 basis point at 5.07% while the 10-year yield is down 4 basis points at 4.49%.\u00a0 The recent increase in rates has put pressure on equities with the Dow logging its worst day since March on Tuesday. So far in September, the Dow is down 3.2%, the S&P 500 has dropped 5.2%, and the Nasdaq has tumbled nearly 7%. Costco Tops Fiscal Q4 Expectations Costco (COST) shares are slipping 1.9% ahead of the open despite beating fiscal Q4 expectations on the top and bottom line.\u00a0 Here\u2019s how the warehouse-club\u2019s results compared to analysts\u2019 estimates: EPS: $4.86 vs $4.79 expected Revenue: $78.9 billion vs $77.9 billion expected Total comparable sales rose 1.1% year over year but just 0.2% in the U.S. Excluding gas, comparable sales rose 3.8% overall and 3.1% in the U.S. Costco\u2019s average transaction amount during the quarter dropped nearly 4% globally and 4.5% in the U.S.\u00a0 The company had 71 million paid household members at the end of the quarter, up nearly 8% from a year ago. The CFO highlighted a shift in consumer spending away from discretionary items like furniture, small electronics, and jewelry.\u00a0 That contributed to the 0.8% decline in e-commerce sales during the quarter.\u00a0 Durable Goods Orders Climb Unexpectedly Durable goods orders rose unexpectedly in August, boosted by strong defense spending.\u00a0 The Census Bureau reported orders rose 0.2% last month vs expectations for a 0.5% decline.\u00a0 Defense spending was higher during the month as the U.S. worked to replenish military hardware that has been sent to Ukraine.\u00a0 Durable goods orders minus defense fell 0.7%. Durable goods orders excluding transportation rose 0.4%. Mortgage Demand Slips Mortgage demand fell last week as rates hit a 23-year high.\u00a0 The Mortgage Bankers Association reported total application volume fell 1.3% weekly and 25.5% year over year.\u00a0 Purchase applications fell 2% weekly and 27% annually.\u00a0 Refinance applications were down 1% weekly and 21% lower than a year ago. The average 30-year fixed contract rate rose to 7.41% from 7.31%, the highest since the year 2000. In Case You Missed It New home sales fell more than expected in August. The Census Bureau reported new sales dropped 8.7% to a seasonally adjusted annual rate of 675,000 units vs 695,000 expected. July\u2019s new home sales were also revised higher to 739,000. New home sales have fallen to the lowest level since March 2023 as mortgage rates remain well-above 7%.\u00a0 Consumer confidence tumbled to a four-month low this month. The Conference Board\u2019s consumer confidence index dropped 5.7 points to 103 vs 105.5 expected. Confidence in current economic conditions rose 0.4 points to 147.1. But the six month expectations index dropped 9.6 points to 73.7. That was below the 80 mark that\u2019s know as a recession signal.<\/p>\n","protected":false},"author":41,"featured_media":71344,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-71341","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\/71341","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=71341"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71341\/revisions"}],"predecessor-version":[{"id":71346,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/71341\/revisions\/71346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/71344"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=71341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=71341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=71341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}