Coffee With Greta: New Week Kicks Off Higher
DJIA Futures: +68 (+0.2%)
SPX Futures: +7 (+0.2%)
NASDAQ Futures: +26 (+0.2%)
Good morning friends!
Futures are higher as traders kick off a new week.
Let’s get right to it!
Apple Drops After iPhone 14 Production Warning
Apple (AAPL) shares are down 1.3% ahead of the open after the tech giant said Sunday it has temporarily reduced iPhone 14 production.
That production cut comes amid Covid-19 restrictions at its main Foxconn plant in China.
Apple said the factory is operating at “significantly reduced capacity”.
The company said it will ship fewer iPhone 14 units and customers will experience longer wait times.
Meta Reportedly Set for Massive Layoffs
Meta (META) shares are up 3% in premarket trade following a Wall Street Journal report the company is set to begin large-scale layoffs.
Those layoffs are reportedly set to begin as soon as Wednesday and are expected to impact thousands of employees.
CEO Mark Zuckerberg hinted toward planned layoffs on Meta’s earnings call last month.
He said, “we expect to end 2023 as either roughly the same size, or even a slightly smaller organization than we are today.”
BioNTech Profit Slides
BioNTech (BNTX) shares are down 2.7% ahead of the open despite beating Q3 expectations as profits and sales tumbled year over year.
Here’s how the German pharmaceutical company’s results compared to analysts’ expectations:
- EPS: €6.98 vs €3.42 expected
- Revenue: €3.461 billion vs €2.065 billion expected
Both profit and revenue dropped more than 40% compared to a year ago as Covid vaccine sales slowed.
But BioNTech did raise its full-year Covid vaccine sales forecast to between €16 billion and €17 billion from €13 billion to €17 billion previously.
Inflation Week
Traders are focused on inflation this week with the October consumer price index set to be released Thursday morning.
That report is expected to show both headline and core inflation pressures slowed last month.
The headline CPI is expected to show a 7.9% annual gain while the core CPI is expected to rise 6.5% year over year.
Although both would be a slight slowdown from September, that’s still near a 40-year high.
Following last week’s rate hike the Fed Chair said it is “premature” to start thinking about a pause in rate hikes as inflation remains far above the bank’s 2% target.