Coffee With Greta: Stocks Are Free, Free Fallin’
DJIA Futures: -377 (-1.1%)
SPX Futures: -41 (-1.1%)
NASDAQ Futures: -68 (-0.6%)
Good morning friends!
Futures are sliding as recession fears grip traders.
Let’s get right to it!
Wall Street Selloff Continues
Recession fears have taken over Wall Street and stocks are continuing to tumble.
The major indexes are all sliding further in premarket action after dropping sharply on Thursday.
The Dow Jones dropped 764 points or 2.25% on Thursday, its worst daily performance since September.
The S&P 500 and the Nasdaq fell 2.49% and 3.23% respectively.
All three are on track to notch a second straight week of losses.
Trading is also expected to be volatile today with a large amount of options set to expire.
$2.6 trillion worth of index options are set to expire today, which Goldman Sachs says is the highest amount “relative to the size of the equity market in nearly two years.”
Adobe Jumps On Strong Earnings
Adobe (ADBE) shares are up 5.3% ahead of the open after beating fiscal Q4 expectations.
Here’s how the software company’s results compared to analysts’ expectations:
- Adjusted EPS: $3.60 vs $3.50 expected
- Revenue: $4.53 billion as expected
Revenue grew 10% year over year, down from 13% growth the previous quarter.
The CEO said, “We delivered record operating cash flows with a focus on profitability.”
For fiscal Q1, Adobe forecast $3.65 to $3.70 in adjusted EPS on $4.60 billion to $4.64 billion in revenue.
That topped analysts’ expectations of $3.64 in adjusted EPS on $4.64 billion in revenue.
Safety Regulators Investigate GM’s Self-Driving System
General Motors (GM) shares are slipping 1.5% in premarket trade after U.S. safety regulators opened a formal investigation into the company’s autonomous driving system.
The National Highway Traffic Safety Administration (NHTSA) is investigating GM’s self-driving vehicle unit Cruise.
A filing shows NHTSA has received complaints about the vehicles engaging in “inappropriately hard braking” or becoming “immobilized while operating.”
The regulator said, “This may introduce multiple potential hazards such as a collision with a Cruise vehicle, risk to a stranded passenger exiting an immobilized Cruise vehicle, or obstruction of other traffic including emergency vehicles.”
NHTSA is investigating about 240 of the vehicles retrofitted with the Cruise software system.
Cruise is currently awaiting regulatory approval to expand its robotaxi service in San Francisco.
Coinbase Drops As Crypto Uncertainty Continues
Coinbase (COIN) shares are falling 2.3% ahead of the open as uncertainty and volatility continue in the crypto market.
Binance announced today that accounting firm Mazars Group has suspended all work with its crypto clients.
Those clients included Binance, KuCoin, and Crypto.com.
This comes after the collapse of FTX.com has caused uncertainty about other crypto firms and assets across the market.
Bitcoin prices are down nearly 3% in the past 24 hours, dropping below $17,000.
Ethereum is down 5% in the past 24 hours to just over $1,200.
In Case You Missed It
- Two key manufacturing indexes contracted more than expected in early December. The Philadelphia Fed’s manufacturing index came in at -13.8 vs -12 expected but that was an improvement from -19.4 in November. Meanwhile, the Empire State manufacturing index dropped to -11.2 vs -0.5 expected, down sharply from 4.5 in November. Both of these surveys are seen as barometers for the national manufacturing sector. Any reading below 0 indicates deteriorating business conditions. S&P Global releases its flash U.S. manufacturing PMI at 9:45 a.m. ET today.