{"id":72363,"date":"2023-11-29T09:03:02","date_gmt":"2023-11-29T14:03:02","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=72363"},"modified":"2023-11-29T09:03:02","modified_gmt":"2023-11-29T14:03:02","slug":"coffee-with-greta-rally-resumes","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/11\/29\/coffee-with-greta-rally-resumes\/","title":{"rendered":"Coffee With Greta: Rally Resumes"},"content":{"rendered":"

Register now<\/a><\/strong> for today's free trading Q&A on LinkedIn with crypto expert and trader John Divine!<\/p>\n

DJIA Futures: <\/b>+109 (+0.3%)<\/span><\/p>\n

SPX Futures: <\/b>+22 (+0.5%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+97 (+0.6%)<\/span><\/p>\n

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

Futures are up as the November rally resumes.<\/span><\/p>\n

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

Q3 GDP Revised Higher<\/span><\/h2>\n

The U.S. economy expanded at a stronger pace than initially estimated in the third quarter.\u00a0<\/span><\/p>\n

The Commerce Department\u2019s first revision of Q3 GDP was increased to 5.2% annualized growth vs 4.9% initially reported.\u00a0<\/span><\/p>\n

Consumer spending was revised lower to 3.6% vs 4% previously.\u00a0<\/span><\/p>\n

Business investment was revised higher to 2.4% vs 0.8% originally.\u00a0<\/span><\/p>\n

But the robust growth was short-lived as the economy has cooled in Q4 with businesses hiring less people and consumer spending softening.<\/span><\/p>\n

GDP is on track to expand 1% to 2% annually in the current quarter.\u00a0<\/span><\/p>\n

General Motors Jumps After Initiating Buyback<\/span><\/h2>\n

General Motors <\/b>(GM) shares are up 9.1% ahead of the open after the company announced plans for a stock buyback and to boost its dividend.<\/span><\/p>\n

The automaker will buy back $10 billion worth of its stock in an accelerated program.\u00a0<\/span><\/p>\n

That includes the immediate purchase of $6.8 billion worth of common stock.<\/span><\/p>\n

GM also announced it will increase its quarterly dividend by 33% next year to $0.12 per share.<\/span><\/p>\n

The company also reinstated 2023 guidance after reaching a labor agreement with the United Auto Workers Union.\u00a0<\/span><\/p>\n

Here are the details of that guidance:\u00a0<\/span><\/p>\n

    \n
  • Net income attributable to stockholders of $9.1 billion to $9.7 billion vs $9.3 billion to $10.7 billion previously<\/span><\/li>\n
  • Adjusted EBIT of $11.7 billion to $12.7 billion vs $12 billion to $14 billion previously<\/span><\/li>\n
  • Adjusted EPS of $7.20 to $7.70 including the stock buyback, vs $7.15 to $8.15 previously<\/span><\/li>\n
  • Adjusted automotive free cash flow of $10.5 billion to $11.5 billion vs $7 billion to $9 billion previously<\/span><\/li>\n<\/ul>\n

    CEO Mary Barra said the automaker is finalizing a 2024 budget that will \u201cfully offset the incremental costs of our new labor agreements. The long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs.\u201d<\/span><\/p>\n

    Dollar Tree Slips After Earnings Miss<\/span><\/h2>\n

    Dollar Tree <\/b>(DLTR) shares are down 1.8% in premarket trade after missing Q3 expectations and narrowing its full-year guidance.\u00a0<\/span><\/p>\n

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

      \n
    • EPS: $0.97 vs $1.01 expected<\/span><\/li>\n
    • Revenue: $7.31 billion vs $7.4 billion expected<\/span><\/li>\n<\/ul>\n

      Same-store sales grew 3.9% year over year vs 5.3% growth expected.\u00a0<\/span><\/p>\n

      Dollar Tree now expects full-year EPS between $5.81 and $6.01 vs $5.78 to $6.08 previously.\u00a0<\/span><\/p>\n

      The retailer forecast full-year revenue of $30.5 billion to $30.7 billion vs $30.6 billion to $30.9 billion previously.\u00a0<\/span><\/p>\n

      The CFO said in a press release, \u201cOur current outlook takes into consideration several factors including continuing strength at the Dollar Tree banner, incremental freight savings, softer demand from low-income households, and a continuation of the shrink and sales mix headwinds we have seen throughout the year.\u201d<\/span><\/p>\n

      Foot Locker Rallies On Earnings Beat, Upbeat Outlook<\/span><\/h2>\n

      Foot Locker <\/b>(FL) shares are rallying 13.2% ahead of the open after beating Q3 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

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

        \n
      • Adjusted EPS: $0.30 vs $0.21 expected<\/span><\/li>\n
      • Revenue: $1.99 billion vs $1.96 billion expected<\/span><\/li>\n<\/ul>\n

        Same-store sales fell 8% year over year, better than the 9.7% drop analysts were anticipating.\u00a0<\/span><\/p>\n

        Foot Locker said it now expects full-year revenue to drop by 8% to 8.5% vs the previous forecast for an 8% to 9% drop.\u00a0<\/span><\/p>\n

        The retailer forecast same-store sales will decline 8.5% to 9% vs previous guidance of a 9% to 10% drop.\u00a0<\/span><\/p>\n

        Foot Locker now sees full year adjusted EPS of $1.30 to $1.40 vs $1.30 to $1.50 previously.<\/span><\/p>\n

        Mortgage Demand Rises Again<\/span><\/h2>\n

        Mortgage demand rose again last week as rates continued to fall.\u00a0<\/span><\/p>\n

        The Mortgage Bankers Association reported total application volume was up 0.3% on a weekly basis.\u00a0<\/span><\/p>\n

        Purchase applications rose 5% weekly and were 19% lower year over year.\u00a0<\/span><\/p>\n

        Refinance applications tumbled 9% weekly and were 1% higher than a year ago.\u00a0<\/span><\/p>\n

        The average 30-year fixed contract rate decreased to 7.37% from 7.41%, the fourth decrease in the past five weeks.<\/span>\u00a0<\/span><\/p>\n

        In Case You Missed It<\/span><\/h2>\n
          \n
        • Home prices continued to climb in September even as mortgage rates surged. S&P Case-Shiller\u2019s national home price index jumped 3.9% from September 2022, up from the 2.5% annual gain in August. Detroit saw the largest gain with prices up 6.7% annually, prices rose 6.5% year over year in San Diego, and jumped 6.3% in New York. Year-to-date home prices are up 6.1%.<\/span><\/li>\n<\/ul>\n
            \n
          • Consumer confidence rebounded unexpectedly this month. The Conference Board\u2019s consumer confidence index rose nearly 3 points to 102 from 99.1 in October. That was better than expectations for 101. Confidence in current economic conditions fell to 138.2 from 138.6 while the six-month expectations index rose to 77.8 from 72.7. Although that was an improvement, the expectations index remains below the key 80 mark that is known to signal a recession is ahead.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

            Register now for today’s free trading Q&A on LinkedIn with crypto expert and trader John Divine! DJIA Futures: +109 (+0.3%) SPX Futures: +22 (+0.5%) NASDAQ Futures: +97 (+0.6%) Good morning friends! Futures are up as the November rally resumes. Let\u2019s get right to it! Q3 GDP Revised Higher The U.S. economy expanded at a stronger pace than initially estimated in the third quarter.\u00a0 The Commerce Department\u2019s first revision of Q3 GDP was increased to 5.2% annualized growth vs 4.9% initially reported.\u00a0 Consumer spending was revised lower to 3.6% vs 4% previously.\u00a0 Business investment was revised higher to 2.4% vs 0.8% originally.\u00a0 But the robust growth was short-lived as the economy has cooled in Q4 with businesses hiring less people and consumer spending softening. GDP is on track to expand 1% to 2% annually in the current quarter.\u00a0 General Motors Jumps After Initiating Buyback General Motors (GM) shares are up 9.1% ahead of the open after the company announced plans for a stock buyback and to boost its dividend. The automaker will buy back $10 billion worth of its stock in an accelerated program.\u00a0 That includes the immediate purchase of $6.8 billion worth of common stock. GM also announced it will increase its quarterly dividend by 33% next year to $0.12 per share. The company also reinstated 2023 guidance after reaching a labor agreement with the United Auto Workers Union.\u00a0 Here are the details of that guidance:\u00a0 Net income attributable to stockholders of $9.1 billion to $9.7 billion vs $9.3 billion to $10.7 billion previously Adjusted EBIT of $11.7 billion to $12.7 billion vs $12 billion to $14 billion previously Adjusted EPS of $7.20 to $7.70 including the stock buyback, vs $7.15 to $8.15 previously Adjusted automotive free cash flow of $10.5 billion to $11.5 billion vs $7 billion to $9 billion previously CEO Mary Barra said the automaker is finalizing a 2024 budget that will \u201cfully offset the incremental costs of our new labor agreements. The long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs.\u201d Dollar Tree Slips After Earnings Miss Dollar Tree (DLTR) shares are down 1.8% in premarket trade after missing Q3 expectations and narrowing its full-year guidance.\u00a0 Here\u2019s how the discount retailer\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $0.97 vs $1.01 expected Revenue: $7.31 billion vs $7.4 billion expected Same-store sales grew 3.9% year over year vs 5.3% growth expected.\u00a0 Dollar Tree now expects full-year EPS between $5.81 and $6.01 vs $5.78 to $6.08 previously.\u00a0 The retailer forecast full-year revenue of $30.5 billion to $30.7 billion vs $30.6 billion to $30.9 billion previously.\u00a0 The CFO said in a press release, \u201cOur current outlook takes into consideration several factors including continuing strength at the Dollar Tree banner, incremental freight savings, softer demand from low-income households, and a continuation of the shrink and sales mix headwinds we have seen throughout the year.\u201d Foot Locker Rallies On Earnings Beat, Upbeat Outlook Foot Locker (FL) shares are rallying 13.2% ahead of the open after beating Q3 expectations on the top and bottom line.\u00a0 Here\u2019s how the shoe retailer\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.30 vs $0.21 expected Revenue: $1.99 billion vs $1.96 billion expected Same-store sales fell 8% year over year, better than the 9.7% drop analysts were anticipating.\u00a0 Foot Locker said it now expects full-year revenue to drop by 8% to 8.5% vs the previous forecast for an 8% to 9% drop.\u00a0 The retailer forecast same-store sales will decline 8.5% to 9% vs previous guidance of a 9% to 10% drop.\u00a0 Foot Locker now sees full year adjusted EPS of $1.30 to $1.40 vs $1.30 to $1.50 previously. Mortgage Demand Rises Again Mortgage demand rose again last week as rates continued to fall.\u00a0 The Mortgage Bankers Association reported total application volume was up 0.3% on a weekly basis.\u00a0 Purchase applications rose 5% weekly and were 19% lower year over year.\u00a0 Refinance applications tumbled 9% weekly and were 1% higher than a year ago.\u00a0 The average 30-year fixed contract rate decreased to 7.37% from 7.41%, the fourth decrease in the past five weeks.\u00a0 In Case You Missed It Home prices continued to climb in September even as mortgage rates surged. S&P Case-Shiller\u2019s national home price index jumped 3.9% from September 2022, up from the 2.5% annual gain in August. Detroit saw the largest gain with prices up 6.7% annually, prices rose 6.5% year over year in San Diego, and jumped 6.3% in New York. Year-to-date home prices are up 6.1%. Consumer confidence rebounded unexpectedly this month. The Conference Board\u2019s consumer confidence index rose nearly 3 points to 102 from 99.1 in October. That was better than expectations for 101. Confidence in current economic conditions fell to 138.2 from 138.6 while the six-month expectations index rose to 77.8 from 72.7. Although that was an improvement, the expectations index remains below the key 80 mark that is known to signal a recession is ahead.<\/p>\n","protected":false},"author":41,"featured_media":72431,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-72363","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\/72363","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=72363"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/72363\/revisions"}],"predecessor-version":[{"id":72434,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/72363\/revisions\/72434"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/72431"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=72363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=72363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=72363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}