Coffee With Greta: Awaiting Powell
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DJIA Futures: -80 (-0.2%)
SPX Futures: -11 (-0.3%)
NASDAQ Futures: -50 (-0.3%)
Good morning friends!
Futures are slipping for the third straight day as traders await the Fed Chair’s testimony in Congress.
Let’s get right to it!
Powell Testimony Day 1
Fed Chair Jerome Powell will testify in the House Financial Services Committee today for the first day of his two-day Semi-Annual Monetary Policy Report to Congress.
In his prepared opening statement for the hearing, Powell said, “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.”
This comes after the Fed skipped a rate hike last week but signaled plans for two more by year-end.
Powell says inflation “remains well above” the Fed’s 2% target.
His statement says, “the process of getting inflation back down to 2% has a long way to go.”
Powell’s testimony begins at 10:00 a.m. ET.
FedEx Drops After Earnings
FedEx (FDX) shares are down 2.9% ahead of the open after reporting mixed fiscal Q4 results.
Here’s how the shipping giant’s results compared to analysts’ estimates:
- Adjusted EPS: $4.94 vs $4.85 expected
- Revenue: $21.9 billion vs $22.5 billion expected
The CEO said, “The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment. FedEx is becoming a more flexible, efficient and, data-driven organization.”
But FedEx’s guidance came in short of expectations.
The company forecast EPS between $16.50 and $18.50 for the coming fiscal year vs $18.30 expected.
Mortgage Demand Flat Despite Lower Rates
Mortgage demand was flat last week despite rates falling for the third straight week.
The Mortgage Bankers Association reported total application volume increased just 0.5% last week.
Purchase applications increased 2% weekly and were 32% lower year over year.
Refinance applications fell 2% weekly and 40% annually.
The average 30-year fixed contract rate decreased to 6.73% from 6.77%.
In Case You Missed It
- Rivian (RIVN) shares rallied 5.5% on Tuesday after announcing its customers will be able to access Tesla’s charging network in 2024. Current Rivian owners will be able to access Tesla chargers using an adapter and Rivian’s cars will be built with the Tesla-style charging port standard starting in 2025. Tesla (TSLA) shares also rose 5.3%.