Coffee With Greta: Inflation Is Cooling
DJIA Futures: +144 (+0.4%)
SPX Futures: +29 (+0.7%)
NASDAQ Futures: +103 (+0.8%)
Good morning friends!
Futures are jumping after a better-than-expected inflation report.
Let’s get right to it!
CPI Cools More Than Expected
U.S. inflation pressures cooled more than expected in April.
The Bureau of Labor Statistics’ consumer price index rose 0.4% monthly and 4.9% year over year.
That monthly gain was in line with expectations and cooler than 5% annually expected.
Used cars and gas prices saw the largest increases last month, up 4.4% and 2.7% respectively from March.
The core CPI rose 0.4% monthly and 5.5% year over year, in line with estimates.
I’m hosting a free Q&A with Scott Redler after the market close today to discuss the reaction to the CPI and more inflation data on the way.
Register for free now! (*you must login to LinkedIn to sign-up)
Airbnb Plunges On Q2 Warning
Airbnb (ABNB) shares are plunging 14.2% ahead of the open after beating Q1 expectations but issuing weak Q2 guidance.
Here’s how the company’s results compared to analysts’ estimates:
- EPS: $0.18 vs $0.09 expected
- Revenue: $1.82 billion vs $1.79 billion expected
Revenue rose 20% year over year and it was the first time Airbnb has been profitable in Q1 on a GAAP basis.
The company said it had a “strong start” to the year and it’s looking forward to another “strong summer travel season”.
But Airbnb also warned, “Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant.”
The company forecast Q2 revenue between $2.35 billion and $2.45 billion vs analysts’ expectations for $2.42 billion.
Rivian Jumps After Q1 Earnings Beat
Rivian (RIVN) shares are jumping 8.9% in premarket trade after beating Q1 expectations and reaffirming its 2023 production target.
Here’s how the electric truckmaker’s results compared to analysts’ estimates:
- Adjusted loss per share: $1.25 vs $1.59 expected
- Revenue: $661 million vs $652.1 million expected
Rivian said it is still on track to meet its 50,000 vehicle production target for 2023.
Roblox Flat After Missing Q1 Expectations
Roblox (RBLX) shares are up 0.3% in premarket trade after reporting a wider loss and lower revenue than expected in Q1.
Here’s how the video game company’s results compared to analysts’ estimates:
- Loss per share: $0.44 vs $0.40 expected
- Revenue: $774 million vs $766 million expected
Roblox’s average daily active users jumped 22% year over year to 66 million while engagement hours rose 23% to 14.5 billion.
Mortgage Demand Jumps After Fed Meeting
Mortgage demand jumped last week after the Fed seemed to signal a pause in rate hikes.
The Mortgage Bankers Association reported purchase applications rose 5% weekly and were 32% lower than a year ago.
Refinance applications jumped 10% weekly and were down 44% annually.
The average 30-year contract fixed rate fell to 6.48% from 6.5% the previous week.
In Case You Missed It
- The President and top Congressional leaders appeared to make no progress on a debt ceiling deal Tuesday. Biden plans to host another meeting with the “big four” from Congress on Friday. He told reporters after Tuesday’s meeting, “Everyone in the meeting understood the risk of default. I made clear during our meeting that default is not an option.”