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Coffee With Greta: Traders Digest Earnings, Recession Fears


DJIA Futures: +28 (+0.1%)

SPX Futures: -1 (-0.01%)

NASDAQ Futures: -28 (-0.2%)

Good morning friends!

Futures are flat as traders digest earnings and the latest data showing the economy is headed for a recession.

Let’s get right to it!

Procter & Gamble Tops Fiscal Q3 Expectations

Procter & Gamble (PG) shares are up 2.4% ahead of the open after beating fiscal Q3 expectations on the top and bottom line. 

Here’s how the consumer goods giant’s results compared to analysts’ estimates: 

  • EPS: $1.37 vs $1.32 expected
  • Revenue: $20.07 billion vs $19.32 billion expected

Organic sales jumped 7% year over year but sales volume fell 3% as consumers opted for cheaper alternatives.

But higher prices helped offset that lower volume. 

P&G’s prices were up 10% year over year after the company raised prices again during the quarter. 

The company now expects fiscal 2023 organic sales growth of 6%, up from 4% to 5% previously. 

Tesla Hikes Prices After Share Slump

Tesla (TSLA) shares are up 0.5% in premarket trade after the electric automaker raised prices on some its vehicles Thursday night. 

The Model S and Model X prices were raised by $2,500 each. 

The Model S now starts at $87,490 and the Model X at 97,490. 

The vehicles are still cheaper than they were at the end of the first quarter but the adjustments come just two days after Tesla lowered the prices on its Model Y and Model 3 gain. 

Tesla shares dropped 9.7% on Thursday, the largest drop since January 3.

That decline came after CEO Elon Musk suggested the company will continue cutting prices after reporting Q1 earnings. 

Musk told analysts, “We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin.”

Coming Up: Services, Manufacturing PMI

S&P Global releases its April flash readings for both the services and manufacturing PMIs today. 

The services index is expected to fall to 51.5 from 52.6 last month while the manufacturing index is expected to decline to 49 from 49.2. 

These surveys are used to determine the health of the economy by sector. 

Any reading above 50 signals growth while a reading below 50 signals contraction.

In Case You Missed It

  • The latest data signals the U.S. economy is headed for a recession this year. The Conference Board’s leading economic indicators index sank 1.2% in March vs expectations for a 0.7% decline. It was the biggest drop in three years and the 12th consecutive monthly decline. 
  • Existing home sales slowed more than expected in March. The National Association of Realtors reported existing sales fell 2.4% last month to a seasonally adjusted annual rate of 4.44 million units vs 4.48 million expected. Home sales were down 22% year over year as high mortgage rates and low supply put pressure on buyers.

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