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Coffee With Greta: Focus Turns To Inflation


DJIA Futures: +159 (+0.5%)

SPX Futures: +25 (+0.6%)

NASDAQ Futures: +99 (+0.7%)

Good morning friends!

Futures are rising as traders turn their focus to inflation and continue to digest earnings. 

Let’s get right to it!

Focus Turns to Inflation

The focus for traders this week is the July CPI report which will be released on Wednesday. 

That’s expected to show headline inflation slowed to 8.7% annually last month as gas prices cooled from the record-highs in June. 

But the core CPI is expected to increase to 6.1% from 5.9%. 

The data comes after the July jobs report crushed expectations last week. 

The inflation data this week will give the market more clarity on the Fed’s next rate hike.

CME Group’s FedWatch Tool shows 68.5% of traders now expect another 0.75% rate hike at the September meeting. 

Tyson Reports Mixed Fiscal Q3 Results As Meat Prices Soar

Tyson Foods (TSN) shares are falling 4.9% ahead of the open after reporting mixed fiscal Q3 results. 

The meat producer reported adjusted earnings of $1.94 per share on $13.5 billion in revenue. 

That missed analysts’ expectations for adjusted EPS of $1.97 but beat estimates for $13.31 billion in revenue. 

That profit miss came as demand fell for many of its products due to higher prices. 

Total sales volume fell 1.9% while prices rose 8.1% on average. 

Chicken volume fell 2.1% but sales increased 25.6% due to higher prices. 

Beef volume increased 1.3% and sales rose 1%.

The company said the USDA has indicated domestic production of meat in fiscal 2022 should see flat annual growth compared to last year. 

Palantir Plunges On Surprise Q2 Loss

Palantir (PLTR) shares are plunging 14.8% in premarket trade after reporting a surprise profit loss in the second quarter. 

The data analytics company reported a loss of $0.01 per share on $473 million in revenue. 

That missed analysts’ expectations for earnings of $0.03 per share but beat estimates for $471.3 million in revenue. 

Overall revenue rose 26% year-over-year with commercial revenue jumping 46%. 

Palantir said its commercial customer count increased 250% annually, growing from 34 customers to 119. 

The CFO blamed the profit miss on a decline in investments and marketable securities. 

But he said commercial growth is widespread. 

Palantir forecast Q3 revenue between $474 million and $475 million and full-year sales between $1.9 billion and $1.902 billion. 

Signify Health Surges On Possible CVS Takeover

Signify Health (SGFY) shares are surging 17.2% ahead of the open amid reports CVS (CVS) is planning a takeover bid of the company. 

The Wall Street Journal first reported CVS is seeking to make a bid this week. 

The pharmacy chain said in its earnings last week it is looking to expand in home-health services. 

And Signify Health previously said it is exploring strategic alternatives, including a sale. 

Initial bids are due this week and CVS is expected to face competition. 

CVS shares are up 0.6% in premarket trade.

Pfizer to Purchase Global Blood Therapeutics

Global Blood Therapeutics (GBT) shares are up 4.7% ahead of the open after agreeing to be acquired by Pfizer (PFE). 

Pfizer will pay $68.50 per share for Global Blood.

The deal is valued at about $5.4 billion, including assumed debt. 

GBT shares soared last week as original reports emerged the two companies were in talks for an acquisition. 

PFE shares are flat in premarket trade.

Oil Prices Slide On Recession Fears

Oil prices are sliding as demand concerns rise on fresh recession fears. 

West Texas Intermediate crude futures are down 1.1% at $88 bbl while Brent crude futures are down 1% at $94 bbl.

New data also showed China imported just 8.79 million barrels of crude per day in July.

That was up from the four-year low in June but still 9.5% lower than July 2021. 

In Case You Missed It

  • Tesla (TSLA) shares are rising 2.2% after shareholders approved a 3-for-1 stock split last week. Each stockholder of record on August 17 will receive a dividend of 2 new shares for every one they own after the close on August 24. The stock will then begin trading on a split-adjusted basis on August 25.
  • The Senate narrowly passed Democrats’ “Inflation Reduction Act” over the weekend. The legislation was approved in a 51-50 vote along party lines on Sunday, with the Vice President casting the tie-breaking vote. The bill is now headed to the House which plans to return from summer recess on Friday to approve it. The bulk of spending in the bill is focused on addressing climate change. It also addresses prescription drug pricing, puts a cap on insulin prices, includes a new 15% minimum tax on large corporations, and creates a new 1% excise tax on stock buybacks.

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