Coffee With Greta: Traders Await Inflation Data
DJIA Futures: -83 (-0.2%)
SPX Futures: -16 (-0.4%)
NASDAQ Futures: -74 (-0.6%)
Good morning friends!
Futures are falling as traders digest the latest earnings ahead of key inflation data on Wednesday.
Let’s get right to it!
PayPal Slips Despite Earnings Beat
PayPal (PYPL) shares are down 6.9% in premarket trade despite beating Q1 expectations on the top and bottom line.
Here’s how the digital payments company’s results compared to analysts’ estimates:
- EPS: $1.17 vs $1.10 expected
- Revenue: $7.04 billion vs $6.98 billion expected
But PayPal’s guidance for the current quarter was underwhelming.
The company expects Q2 earnings on the low end of $1.15 to $1.17 per share vs analysts’ forecast for $1.17.
PayPal forecast full-year adjusted earnings of $4.95 per share vs $4.87 per share previously.
Palantir Rallies After Earnings Beat
Palantir (PLTR) shares are jumping 15.4% ahead of the open after beating Q1 expectations and forecasting a full-year profit.
Here’s how the software company’s results compared to analysts’ estimates:
- EPS: $0.05 vs $0.04 expected
- Revenue: $525 million vs $506 million expected
Revenue increased 18% year over year with U.S. commercial revenue up 26%.
The CEO said Palantir expects to remain profitable “each quarter through the end of the year.”
The company forecast Q2 revenue between $528 million and $532 million and $2.19 billion to $2.24 billion for the full year.
Lucid Falls After Q1 Miss, Lower Production Guidance
Lucid Group (LCID) shares are dropping 10.1% ahead of the open after missing Q1 expectations and cutting its production guidance.
Here’s how the electric automaker’s results compared to analysts’ estimates:
- Loss per share: $0.43 vs $0.39 expected
- Revenue: $149 million vs $204 million expected
Lucid delivered 1,406 vehicles in Q1, making the average revenue per delivery $106,000 vs $133,000 in Q4.
That indicates pricing has dropped faster than expected as analysts were anticipating $145,000 in revenue per vehicle.
The CEO said, “We are on track to produce over 10,000 vehicles in 2023.”
But Lucid’s forecast in Q4 was for production of 10,000 to 14,000 vehicles this year.
Biden Hosts Debt Ceiling Negotiations
President Biden will meet with Congressional leaders at the White House today for negotiations about raising the debt ceiling.
The House Speaker, Senate Majority Leader, House Minority Leader, and Senate Minority Leader will all attend today’s meeting.
This comes as the two sides remain at odds over an agreement to raise or suspend the debt ceiling.
But Treasury Secretary Janet Yellen has warned the government will run out of money in early June.
Yellen says the Treasury Department is already relying on “extraordinary measures” to pay its bills.
Republicans have pushed for spending cuts in exchange for raising the debt ceiling but Democrats have labeled that a non-starter.
Biden said Friday, “Those two are totally unrelated. Whether you pay the debt or not, doesn’t have a damn thing to do with what your budget is. They’re two separate issues.”