Coffee With Greta: More Good Inflation News
DJIA Futures: -128 (0.4%)
SPX Futures: -3 (-0.1%)
NASDAQ Futures: +33 (+0.3%)
Good morning friends!
Futures are mixed as traders digest more inflation data, jobs data, and earnings.
Let’s get right to it!
Wholesale Inflation Eases
U.S. wholesale inflation pressures cooled more than expected in April, in a sign that consumer prices will continue to fall.
The Bureau of Labor Statistics’ producer price index rose 0.2% last month and 2.3% year over year.
That was better than expectations for +0.3% monthly and +2.5% annually.
It was also the lowest annual reading since January 2021.
The core PPI rose 0.2% monthly and 3.2% annually, in line with expectations on a monthly basis and better than 3.3% annually expected.
Weekly Jobless Claims Jump
Weekly jobless claims jumped last week to a nearly two-year high.
The Labor Department reported 264,000 Americans filed initial claims for unemployment benefits.
That was up by 22,000 from the previous week and higher than 245,000 expected and the highest level since October 2021.
The data is a sign of tightening in the labor market, which is what the Fed wants to see.
Continuing claims fell by 63,900 to 1.72 million in the week ending April 22.
PacWest Deposits Tumble
PacWest Bancorp (PACW) shares are plunging 18.9% in premarket trade after the regional bank revealed a steep drop in deposits last week.
In an SEC filing today, PACW said deposits declined 9.5% during the week of May 5.
But the bank said it was able to fund all of the withdrawals with available liquidity.
PacWest said it now has $15 billion of available liquidity vs $5.2 billion in uninsured deposits.
The latest drop in deposits comes on top of the 16.9% decline the bank reported in Q1.
Disney Falls As Subscriber Numbers Drop
Walt Disney (DIS) shares are down 5.3% ahead of the open after the company reported fiscal Q2 results that were in line with expectations, but subscriber numbers declined.
Here’s how the entertainment company’s results compared to analysts’ estimates:
- EPS: $0.93, as expected
- Revenue: $21.82 billion vs $21.78 billion expected
- Disney+ subscribers: 157.8 million vs 163.17 million expected
The company lost 4 million Disney+ subscribers, or 2%, during the quarter.
But Disney’s streaming losses were better than estimates at $659 million vs $841 million expected.
But the parks, experiences, and products divisions were a bright spot as revenue jumped 17% to $7.7 billion.
About $5.5 billion of that revenue was from Disney’s theme park locations.
Robinhood Jumps After Earnings Beat
Robinhood (HOOD) shares are up 3.9% in premarket trade after beating Q1 expectations on the top and bottom line.
Here’s how the online broker’s results compared to analysts’ estimates:
- Loss per share: $0.57 vs $0.62 expected
- Revenue: $441 million vs $425 million expected
Robinhood added 120,000 customers during the quarter, bringing the total to 23.1 million vs 23.05 million expected.
The company made more money on deposits last quarter than trading, as it offered above-average interest rates.
And stock-trading declined with monthly active users falling 26% year over year to 11.8 million.
Robinhood announced it will allow 24 hour trading, Monday through Friday, on a select group of stocks starting next week.