Coffee With Greta: Stocks Jump As Inflation Drops
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DJIA Futures: +39 (+0.1%)
SPX Futures: +13 (+0.3%)
NASDAQ Futures: +98 (+0.7%)
Good morning friends!
Futures are higher as new data shows inflation continuing to cool.
Let’s get right to it!
CPI Falls To Two-Year Low
Inflation pressures continued to cool in May, falling to the lowest annual rate in more than two years.
The Bureau of Labor Statistics’ consumer price index rose 0.1% monthly and 4% year over year.
That was the lowest annual increase since March 2021.
But core inflation pressures, which exclude food and energy prices, were higher.
The core CPI rose 0.4% monthly and 5.3% annually.
All of the data was in line with economists’ expectations and is good news for traders hoping for Fed pause on Wednesday.
CME Group’s FedWatch Tool now shows 100% of traders betting the central bank will leave rates unchanged this week.
Oracle Jumps After Earnings Beat
Oracle (ORCL) shares are up 5.6% ahead of the open after beating fiscal Q4 expectations on the top and bottom line.
Here’s how the software company’s results compared to analysts’ estimates:
- Adjusted EPS: $1.67 vs $1.58 expected
- Revenue: $13.84 billion vs $13.73 billion expected
Total revenue rose 17% year over year while cloud services and license support revenue jumped 23%.
Cloud infrastructure revenue soared 76%, building on the 55% growth seen in the previous quarter.
Apple Slips After Hitting Record High
Apple (AAPL) shares are down 0.3% in premarket trade after closing at a fresh record high on Monday.
The iPhone maker’s stock gained 1.6% and closed at $183.79.
The record comes after Apple unveiled its new VR headset the Vision Pro at its Worldwide Developers Conference last week.
FTC Files To Block Microsoft-Activision Blizzard Merger
The FTC is attempting to block Microsoft’s (MSFT) acquisition of Activision Blizzard (ATVI).
The agency applied for a temporary restraining order and preliminary injunction to block the deal on Monday.
Despite the move, MSFT shares are up 0.8% and ATVI shares are up 0.7% ahead of the open.
The FTC is worried Microsoft may withhold popular Activision Blizzard games from launching on other game consoles or charge more for games that do launch on other consoles.
The FTC’s hearing date for the deal fell after the July 18 deadline for the merger, which prompted the injunction request.