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Coffee With Greta: Quarter End

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DJIA Futures: +115 (+0.4%)

SPX Futures: +9 (+0.2%)

NASDAQ Futures: +7 (+0.1%)

Good morning friends!

Futures are rising on the final day of Q1 after the release of better-than-expected inflation data.

Let’s get right to it!

PCE Inflation Cooler Than Expected

The Fed’s preferred inflation gauge rose less than expected in February. 

The personal consumption expenditures (PCE) price index rose 0.3% monthly and 5.0% year over year. 

That was better than expectations for a 0.4% monthly gain and 5.1% annually. 

The core PCE price index, which excludes food, energy, and trade, rose 0.3% monthly and 4.6% year over year. 

That was also cooler than 0.4% monthly and 4.7% annually expected.

Both were a cooldown from January as the Fed’s fight against inflation continues. 

Personal incomes also rose more than expected up 0.3% monthly in February vs 0.2% expected. 

But personal spending was lower than expected, rising 0.2% vs 0.3% estimated.

Virgin Orbit To Cease Operations

Virgin Orbit (VORB) shares are plummeting 41.9% ahead of the open as the company is set to shut down. 

CEO Dan Hart told employees during an all-hands meeting Thursday afternoon that the company is ceasing operations “for the foreseeable future” and nearly all employees will be laid off. 

Hart said, “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company.”

All but 100 employees will be eliminated, representing about 90% of the workforce. 

Each laid off employee will receive a severance package with a cash payment, extension of benefits, and support in finding a new job. 

Hart said a “direct pipeline” has been set up with sister company Virgin Galactic (SPCE) for hiring.

Quarter-End

Today is the final day of March, officially marking the end of the first quarter. 

The major indexes are mixed for the quarter.

The S&P 500 and the Nasdaq are both on track for winning quarters, up 5.5% and 14.8% respectively. 

The Dow Jones meantime is down slightly for Q1. 

For the month, the S&P has gained 2%, the Nasdaq is up 4.9%, and the Dow is up 0.6%.

Coming Up: Consumer Sentiment

The University of Michigan releases its final March consumer sentiment index at 10:00 a.m. ET. 

That index is expected to decline slightly to 63 from the flash reading of 63.4 earlier this month.

The survey also includes consumers’ inflation expectations which the Fed has been monitoring in recent months. 

In Case You Missed It

  • Ford (F) shares rose 2% on Thursday after the automaker resumed production and hiked prices on the F-150 Lightning electric pickup truck. The company said it has resumed full production of the truck after pausing back in February due to a battery fire. The F-150 Lightning Pro will now start at a base price of $60,000, roughly 50% higher than the original starting price last Spring. The mid-level Lariat trim will range from $74,500 to just under $76,000. And the top-line Platinum trim will range between $96,900 to just over $98,000.

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