Coffee With Greta: Stocks Extend Gains
DJIA Futures: +210 (+0.6%)
SPX Futures: +27 (+0.7%)
NASDAQ Futures: +96 (+0.7%)
Good morning friends!
Futures are rising as traders bet the banking crisis has stabilized.
Let’s get right to it!
Q4 GDP Revised Lower
U.S. economic growth was revised lower in the final quarter of 2022.
The Commerce Department revised GDP growth down to 2.6% from 2.7% previously.
It was the second downward revision to economic growth and reflected lower exports and consumer spending during the quarter.
Imports, which are subtracted from GDP, were also revised slightly lower.
The U.S. economy expanded at a 2.1% annual rate for all of 2022, with 2 quarters of negative growth and 2 quarters of positive growth.
Weekly Jobless Claims Hit 3-Week High
Weekly jobless claims rose more than expected last week.
The Labor Department reported 198,000 Americans filed initial claims for unemployment benefits.
That was up by 7,000 from the week before and higher than 195,000 expected.
It was also the highest level in three weeks.
Continuing claims decreased by 5,000 to 1.69 million vs 1.70 million expected.
Treasury Yields Rise
U.S. Treasury yields are rising this morning as investors digest the latest economic data.
The 2-year yield is up 10 basis points to 4.16% while the 10-year yield is up 2 basis points to 3.59%.
Turmoil in the banking sector seems to be settling after the collapse of Silicon Valley Bank earlier this month.
CME Group’s FedWatch Tool still shows the market is split on what the Fed will do next with rates.
55% are anticipating a pause at the May 3 Fed meeting while 45% are expecting another 25 basis point rate hike.
The Boston, Richmond, and Minneapolis Fed presidents are all scheduled to speak today.
Traders will be monitoring those speeches for any insight on the bank’s plans.
EVgo Surges On Earnings Beat
EVgo (EVGO) shares are rallying 15.5% ahead of the open after reporting a smaller loss and higher revenue than expected in Q4.
Here’s how the EV charging network operator’s results compared to analysts’ estimates:
- Loss per share: $0.06 vs $0.16 expected
- Revenue: $27.3 million vs $21.8 million expected
Revenue surged 283% year over year and the company reported full-year revenue of $54.6 million.
EVgo’s network throughput, which is a measure of the total energy provided to charging customers, jumped 76% annually in Q4.
That jump came as the company added about 59,000 new customers accounts and ended 2022 with over 2,800 fast-charging stalls in operation.
For 2023, the company expects revenue between $105 million and $150 million, an adjusted EBITDA loss between $78 million and $60 million, and 3,400 to 4,000 fast-charging stalls in operation or under construction by year-end.
In Case You Missed It
- Pending home sales rose unexpectedly in February. The National Association of Realtors reported pending sales rose 0.8% last month vs expectations for a 3% decline. It was the third straight monthly increase. But pending sales were still down 21.1% compared to February 2022 as higher mortgage rates put pressure on buyers. February’s pending sales represent contracts signed with the sale expected to close in 30 to 60 days.