Coffee With Greta: Good Inflation News
Note: I will be out of office next week so there will be no Coffee With Greta. See you all Monday, July 10 and enjoy the holiday week!
DJIA Futures: +151 (+0.4%)
SPX Futures: +27 (+0.6%)
NASDAQ Futures: +135 (+0.9%)
Good morning friends!
Futures are rising after the release of encouraging new inflation data.
Let’s get right to it!
PCE Inflation Continues To Cool
The Fed’s preferred inflation gauge continued to cool in May.
The Bureau of Economic Analysis’ personal consumption expenditures price index rose 0.1% monthly and 3.8% year over year.
That was in line with expectations and down by 4.3% annually in April.
It was the lowest headline reading since April 2021.
The core PCE price index, which excludes food and energy prices, rose 0.3% monthly and 4.6% annually.
That was slightly cooler than expectations for 4.6% annually.
But the data also showed consumer spending slowed in May.
Consumer spending rose just 0.1% last month vs 0.2% expected and down from 0.8% in April.
Personal incomes rose 0.4%, better than 0.3% expected.
Nike Drops On Earnings Miss
Nike (NKE) shares are down 2.5% ahead of the open after missing fiscal Q4 profit expectations.
Here’s how the sneaker giant’s results compared to analysts’ estimates:
- EPS: $0.66 vs $0.67 expected
- Revenue: $12.83 billion vs $12.59 billion expected
It was Nike’s first earnings miss in three years as lower margins weighed on profits.
Margins fell 1.4% to 43.6% which the company blamed on higher product input costs, elevated freight and logistics costs, more promotions, and unfavorable currency exchange rates.
Apple Tops $3 Trillion Valuation
Apple (AAPL) shares are rising 1.1% in premarket trade with the company’s market cap surpassing $3 trillion.
The threshold for that milestone is just $190.73 per share and the stock is currently trading about $1 higher than that.
Apple became the first company in history to hit the $3 trillion market cap during intraday trade in January 2022.
But it failed to close above that milestone.
AAPL shares are up about 46% so far this year.
In Case You Missed It
- Pending home sales fell unexpectedly in May. The National Association of Realtors reported the number of contracts signed to purchase a home last month dropped 2.7% vs expectations for signings to be unchanged. These contract signings represent sales expected to close in 30 to 60 days, which is a bad sign for existing home sales in the months ahead. But the NAR Chief Economist still said, “The housing market is resilient with approximately three offers for each listing. “The lack of housing inventory continues to prevent housing demand from being fully realized.”