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DJIA Futures: -10 (-0.03%)
SPX Futures: +4 (+0.1%)
NASDAQ Futures: +40 (+0.3%)
Good morning friends!
Futures are flat after more inflation data and the beginning of Q1 earnings season.
Let’s get right to it!
Producer side inflation pressures hit a record high in March.
The Bureau of Labor Statistics’ producer price index surged 11.2% year-over-year.
That’s the strongest gain on record in the survey which dates back to November 2010.
The PPI rose 1.4% monthly vs 1.1% expected.
The core PPI, which excludes food, energy, and trade services, rose 0.9% monthly and 7% year-over-year.
The PPI is a forward-looking indicator for consumer prices as producers pass down higher costs.
This comes after the CPI surged 8.5% year-over-year in March, marking the fastest pace of inflation since December 1981.
The Bureau of Economic Analysis reported real average hourly earnings fell 0.8% from February to March.
The decline came as earnings rose 0.4% while consumer prices rose 1.2%.
Real average weekly earnings plunged 3.6% year-over-year, the largest decline on record.
JPMorgan Chase (JPM) shares are down 3.6% ahead of the open after missing Q1 expectations.
The largest bank in the U.S. reported earnings of $2.63 per share on $30.7 billion in revenue.
That missed analysts’ expectations for EPS of $2.72 on $30.59 billion in revenue.
JPMorgan set aside $902 million in loan loss reserves and said it lost $524 million due to the market impact of Russia’s invasion of Ukraine.
The bank announced a $30 billion buyback program.
Delta Airlines (DAL) shares are up 5.6% in premarket trade after beating Q1 expectations.
The airline reported an adjusted loss of $1.23 per share on $9.35 billion in revenue.
That was better than analysts’ expectations for a per-share loss of $1.27 on $8.92 billion in revenue.
Delta’s fuel bill was 6% higher in Q1 compared to 2019 despite capacity being 17% lower.
The company forecast costs will rise 17% this quarter.
Delta logged the highest bookings in company history in March.
The airline said it expects to return to profitability in Q2 and plans to fly 84% of its 2019 capacity levels.
Bed Bath & Beyond (BBBY) shares are down 11.3% ahead of the open after reporting a surprise Q4 loss.
The retailer reported a loss of $0.92 per share on $2.05 billion in revenue.
That sharply missed analysts’ expectations for a profit of $0.03 per share on $2.07 billion in revenue.
Same-store sales fell 12% year over year while digital sales tumbled 18%.
The CEO blamed the loss on “major headwinds in the macro-environment” that have slowed the company’s turnaround efforts.
Oil prices are rising for the second day in a row as supply concerns remain.
West Texas Intermediate crude futures are up 1.6% to over $102 bbl while Brent crude futures are up 1.8% to $106.50 bbl.
Moscow said peace talks with Ukraine hit a dead end, killing hope that the situation would be de-escalated anytime soon.
At an event in Iowa Tuesday, President Biden announced the EPA will allow higher ethanol levels in gas this summer to combat high prices.
The agency issued a waiver allowing gas with 15% levels of ethanol to be sold between June 1 and September 15.
Ethanol levels are usually limited to 10% during the summer.
The White House estimates this initiative will save Americans 10 cents per gallon on average.
The U.S. federal budget deficit narrowed 71% in March from a year earlier as pandemic spending plunged.
The government ran a $193 billion deficit last month.
The Treasury Department reported spending fell 45% year-over-year to $508 billion while government receipts rose 18% to $315 billion.
Revenue totaled $2.1 trillion through March, a record-high for the first six months of a fiscal year.
In that same time period, the federal deficit was at $668 billion.
That’s down 61% compared to a year ago.
The huge annual decline in the deficit reflected a sharp drop in pandemic spending as the last stimulus package was approved by Congress in March 2021.