Coffee With Greta: Key Week Begins
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DJIA Futures: +9 (+0.03%)
SPX Futures: -3 (-0.1%)
NASDAQ Futures: -22 (-0.1%)
Good morning friends!
Futures are flat as traders gear up for a big week with important inflation data and the start of Q2 earnings season.
Let’s get right to it!
Awaiting CPI
Traders are looking ahead to key inflation data this week.
The June consumer price index will be released by the Bureau of Economic Analysis on Wednesday morning.
Expectations are for the annual headline CPI rate to fall to 3.1% from 4% in May and the annual core CPI rate to decrease to 5% from 5.3%.
The June producer price index will then be released on Thursday morning.
This data comes before the Fed’s next rate decision on July 26.
CME Group’s FedWatch Tool currently shows 92.4% of traders expecting a 25 basis point rate hike at that meeting.
Earnings Season Approaches
Second quarter earnings season will officially kick off at the end of this week with the big U.S. banks.
Things kick off with Delta Airlines (DAL) and Pepsico (PEP) Thursday morning ahead of the open.
Then JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), and UnitedHealth Group (UNH) all report Friday morning.
There is a lot of focus on this earnings season as many analysts are expecting an “earnings recession”.
Morgan Stanley (MS) analysts issued an earnings warning Sunday night.
In a note, the group said corporate profits will be under pressure for the remainder of the year “as pricing power declines and costs remain sticky. Our US strategists remain of the view that 2H should see consensus downgrades.”
The note said, “Inventory has grown sharply while demand, especially demand for goods, is falling. Companies will need to decide how they want to handle excess inventory and we believe many will turn to aggressive discounting; Autos is leading this debate.”
Meta’s Threads Tops 100 Million Users
Meta Platforms (META) shares are up 0.9% ahead of the open as its new social media platform Threads continues to grow rapidly.
The tracking site Quiver Quantitative shows Threads has surpassed 100 million users since it launched last Wednesday.
The growth has been rapid compared to other popular platforms.
It took two months for ChatGPT to reach 100 million users and nine months for TikTok.