{"id":73545,"date":"2024-02-01T09:06:15","date_gmt":"2024-02-01T14:06:15","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=73545"},"modified":"2024-02-01T09:06:15","modified_gmt":"2024-02-01T14:06:15","slug":"coffee-with-greta-march-cut-hopes-dashed","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2024\/02\/01\/coffee-with-greta-march-cut-hopes-dashed\/","title":{"rendered":"Coffee With Greta: March Cut Hopes Dashed"},"content":{"rendered":"

DJIA Futures: <\/b>+17 (+0.04%)<\/span><\/p>\n

SPX Futures: <\/b>+20 (+0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+100 (+0.6%)<\/span><\/p>\n

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

Futures are higher as traders digest the first Fed decision of the year and await big tech earnings after the close.<\/span><\/p>\n

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

Yields Fall After Fed Decision<\/span><\/h2>\n

Treasury yields are falling this morning as the market digests the first Fed decision of 2024.\u00a0<\/span><\/p>\n

The 10-year yield is down two basis points at 3.90% while the 2-year yield is down one basis point at 4.20%.\u00a0<\/span><\/p>\n

The Federal Reserve threw cold water on traders\u2019 hopes for a March rate cut on Wednesday.\u00a0<\/span><\/p>\n

The Federal Open Market Committee kept the federal funds rate in a range of 5.25% to 5.5% as expected.<\/span><\/p>\n

In its statement, the FOMC said, \u201cThe Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.”<\/span><\/p>\n

The statement did remove language about\u00a0 “any additional policy firming that may be appropriate”, which was a key change for shifting policy ahead.<\/span><\/p>\n

But Chairman Jerome Powell said in his press conference, \u201cBased on the meeting today, I would tell you that I don\u2019t think it\u2019s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that. But that\u2019s to be seen.\u201d<\/span><\/p>\n

CME Group\u2019s FedWatch Tool now shows nearly 61% of traders expecting the first 25bps rate cut at the May 1 meeting.<\/span><\/p>\n

Qualcomm Slips On Weak Guidance<\/span><\/h2>\n

Qualcomm <\/b>(QCOM) shares are down 2.1% ahead of the open after beating fiscal Q1 expectations but issuing soft guidance.\u00a0<\/span><\/p>\n

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

    \n
  • Adjusted EPS: $2.75 vs $2.37 expected<\/span><\/li>\n
  • Revenue: $9.92 billion vs $9.51 billion expected<\/span><\/li>\n<\/ul>\n

    Net income jumped 24% year over year.\u00a0<\/span><\/p>\n

    The company said it shipped $6.69 billion in smartphone chips during the quarter, up 16% from a year ago.\u00a0<\/span><\/p>\n

    Qualcomm forecast fiscal Q2 adjusted EPS between $1.73 and $1.93 on revenue of $8.9 billion to $9.7 billion.\u00a0<\/span><\/p>\n

    Analysts\u2019 were forecasting EPS of $2.25 on $9.3 billion in revenue.\u00a0<\/span><\/p>\n

    Peloton Tumbles On Mixed Results, Bad Outlook<\/span><\/h2>\n

    Peloton <\/b>(PTON) shares are plunging 10.1% in premarket trade after reporting mixed fiscal Q2 results and issuing weak guidance.\u00a0<\/span><\/p>\n

    Here\u2019s how the fitness equipment maker\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • Loss per share: $0.54 vs $0.53 expected<\/span><\/li>\n
    • Revenue: $743.6 billion vs $733.5 million<\/span><\/li>\n<\/ul>\n

      For fiscal Q3, Peloton forecast sales between $700 million and $725 million vs $754 million expected.\u00a0<\/span><\/p>\n

      The company expects an adjusted EBITDA loss of $20 million to $30 million vs expectations for a $2 million loss.\u00a0<\/span><\/p>\n

      The CFO said, \u201cOur outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook.\u201d<\/span><\/p>\n

      More MAG7 Earnings Ahead<\/span><\/h2>\n

      Today will be a big day of earnings for traders after the market closes.\u00a0<\/span><\/p>\n

      The rest of the Magnificent 7 stocks are scheduled to report after-hours with <\/span>Apple <\/b>(AAPL), <\/span>Meta Platforms <\/b>(META), and <\/span>Amazon <\/b>(AMZN).\u00a0<\/span><\/p>\n

      Focus is on these results after <\/span>Microsoft <\/b>(MSFT) and <\/span>Alphabet <\/b>(GOOGL) reported earlier this week.\u00a0<\/span><\/p>\n

      Apple\u2019s results will be released at 4:30 p.m. ET with the conference call at 5:00, the stock\u2019s implied move is 5%.\u00a0<\/span><\/p>\n

      Meta\u2019s report will be out at 4:15 p.m. ET with the earnings call at 5:00, the stock\u2019s implied move is 11.8%.\u00a0<\/span><\/p>\n

      Amazon\u2019s report will be released right as the market closes at 4:00 p.m. ET with the conference call at 5:30, the stock\u2019s implied move is 7.2%.<\/span><\/p>\n

      Weekly Jobless Claims Climb To 3-Month High<\/span><\/h2>\n

      Weekly jobless claims rose more than expected last week in a possible sign of a softening labor market.\u00a0<\/span><\/p>\n

      The Labor Department reported 224,000 Americans filed initial claims for unemployment benefits last week.\u00a0<\/span><\/p>\n

      That was up by 9,000 from the previous week and higher than 214,000 expected.\u00a0<\/span><\/p>\n

      It was also the highest total in nearly three months.\u00a0<\/span><\/p>\n

      Continuing claims rose by 70,000 to 1.9 million in the week ending January 20.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      DJIA Futures: +17 (+0.04%) SPX Futures: +20 (+0.4%) NASDAQ Futures: +100 (+0.6%) Good morning friends! Futures are higher as traders digest the first Fed decision of the year and await big tech earnings after the close. Let\u2019s get right to it! Yields Fall After Fed Decision Treasury yields are falling this morning as the market digests the first Fed decision of 2024.\u00a0 The 10-year yield is down two basis points at 3.90% while the 2-year yield is down one basis point at 4.20%.\u00a0 The Federal Reserve threw cold water on traders\u2019 hopes for a March rate cut on Wednesday.\u00a0 The Federal Open Market Committee kept the federal funds rate in a range of 5.25% to 5.5% as expected. In its statement, the FOMC said, \u201cThe Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” The statement did remove language about\u00a0 “any additional policy firming that may be appropriate”, which was a key change for shifting policy ahead. But Chairman Jerome Powell said in his press conference, \u201cBased on the meeting today, I would tell you that I don\u2019t think it\u2019s likely that the committee will reach a level of confidence by the time of the March meeting to identify March as the time to do that. But that\u2019s to be seen.\u201d CME Group\u2019s FedWatch Tool now shows nearly 61% of traders expecting the first 25bps rate cut at the May 1 meeting. Qualcomm Slips On Weak Guidance Qualcomm (QCOM) shares are down 2.1% ahead of the open after beating fiscal Q1 expectations but issuing soft guidance.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.75 vs $2.37 expected Revenue: $9.92 billion vs $9.51 billion expected Net income jumped 24% year over year.\u00a0 The company said it shipped $6.69 billion in smartphone chips during the quarter, up 16% from a year ago.\u00a0 Qualcomm forecast fiscal Q2 adjusted EPS between $1.73 and $1.93 on revenue of $8.9 billion to $9.7 billion.\u00a0 Analysts\u2019 were forecasting EPS of $2.25 on $9.3 billion in revenue.\u00a0 Peloton Tumbles On Mixed Results, Bad Outlook Peloton (PTON) shares are plunging 10.1% in premarket trade after reporting mixed fiscal Q2 results and issuing weak guidance.\u00a0 Here\u2019s how the fitness equipment maker\u2019s results compared to analysts\u2019 estimates:\u00a0 Loss per share: $0.54 vs $0.53 expected Revenue: $743.6 billion vs $733.5 million For fiscal Q3, Peloton forecast sales between $700 million and $725 million vs $754 million expected.\u00a0 The company expects an adjusted EBITDA loss of $20 million to $30 million vs expectations for a $2 million loss.\u00a0 The CFO said, \u201cOur outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook.\u201d More MAG7 Earnings Ahead Today will be a big day of earnings for traders after the market closes.\u00a0 The rest of the Magnificent 7 stocks are scheduled to report after-hours with Apple (AAPL), Meta Platforms (META), and Amazon (AMZN).\u00a0 Focus is on these results after Microsoft (MSFT) and Alphabet (GOOGL) reported earlier this week.\u00a0 Apple\u2019s results will be released at 4:30 p.m. ET with the conference call at 5:00, the stock\u2019s implied move is 5%.\u00a0 Meta\u2019s report will be out at 4:15 p.m. ET with the earnings call at 5:00, the stock\u2019s implied move is 11.8%.\u00a0 Amazon\u2019s report will be released right as the market closes at 4:00 p.m. ET with the conference call at 5:30, the stock\u2019s implied move is 7.2%. Weekly Jobless Claims Climb To 3-Month High Weekly jobless claims rose more than expected last week in a possible sign of a softening labor market.\u00a0 The Labor Department reported 224,000 Americans filed initial claims for unemployment benefits last week.\u00a0 That was up by 9,000 from the previous week and higher than 214,000 expected.\u00a0 It was also the highest total in nearly three months.\u00a0 Continuing claims rose by 70,000 to 1.9 million in the week ending January 20.<\/p>\n","protected":false},"author":41,"featured_media":73549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-73545","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\/73545","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=73545"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73545\/revisions"}],"predecessor-version":[{"id":73552,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73545\/revisions\/73552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/73549"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=73545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=73545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=73545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}