Coffee With Greta: Cooling Inflation
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DJIA Futures: +148 (+0.4%)
SPX Futures: +28 (+0.6%)
NASDAQ Futures: +156 (+1.0%)
Good morning friends!
Futures are rising after the release of cool inflation data.
Let’s get right to it!
PCE Inflation Drops
The Fed’s preferred inflation gauge cooled further in June.
The Bureau of Economic Analysis’ personal consumption expenditures (PCE) price index rose 0.2% monthly and 3% annually.
That was in line with estimates on a monthly basis and better than 3.1% annually expected.
It was the slowest rate of headline inflation since April 2021.
But the core PCE price index rose 0.2% monthly and 4.1% year over year.
That was better than estimates for a 4.2% annual increase and the lowest level since September 2021.
Consumer spending also rose 0.5% last month, up from 0.2% in May.
Ford Beats, Hikes Guidance
Ford Motor (F) shares are slipping 1.8% ahead of the open despite beating Q2 expectations and hiking its full-year guidance.
Here’s how the automaker’s results compared to analysts’ estimates:
- Adjusted EPS: $0.72 vs $0.55 expected
- Automotive revenue: $42.43 billion vs $40.38 billion expected
Ford said total revenue came in at $45 billion, up 12% year over year.
The Model e electric vehicle unit posted a $1.08 billion loss during the quarter.
Ford now expects full-year adjusted earnings to range between $11 billion and $12 billion, up from $9 billion to $11 billion previously.
The automaker also expected adjusted free cash flow of $6.5 billion to $7 billion vs $6 billion previously.
But the company also said it now expects to lose $4.5 billion on the EV business this year, up from $3 billion a year earlier.
Intel Returns To Profitability
Intel (INTC) shares are up 6.2% in premarket trade after beating Q2 profit expectations.
Here’s how the chipmaker’s results compared to analysts’ estimates:
- Adjusted EPS: $0.13 vs $0.03 loss expected
- Revenue: $12.9 billion vs $12.13 billion expected
The CFO said the stronger than expected performance was partly due to the progress it’s made toward cutting $3 billion in costs this year.
That’s part of the company’s previously announced plan to save $10 billion per year by 2025.
Intel raised its outlook for the third quarter.
The company now expects Q3 adjusted EPS of $0.20 on $13.4 billion in revenue vs analysts’ estimates for $0.16 EPS on $13.23 billion in sales.
Roku Rallies
Roku (ROKU) shares are rallying 9.1% ahead of the open after reporting a smaller than expected Q2 loss.
Here’s how the streaming giant’s results compared to analysts’ estimates:
- Loss per share: $0.76 vs $1.26 expected
- Revenue: $847 million vs $775 million expected
Roku’s Q3 forecast was also stronger than expected.
The company expects $815 million in total revenue with a $50 million adjusted Ebitda loss.
That was better than analysts’ estimates for $809 million in revenue and a $57 million loss.
Procter & Gamble Pops
Procter & Gamble (PG) shares are up 1.6% in premarket trade after beating fiscal Q4 expectations on the top and bottom line.
Here’s how the consumer goods giant’s results compared to analysts’ estimates:
- EPS: $1.37 vs $1.32 expected
- Revenue: $20.55 billion vs $19.98 billion expected
Net sales rose 5% year over year while organic revenue jumped 8%.
The better-than-expected performance was driven by price hikes across its products even as sales volume fell 1% from a year ago.
But P&G’s outlook came in short.
The company expects fiscal 2024 revenue growth of 3% to 4% vs 4.5% expected.
P&G also projected EPS growth of 6% to 9%, on the lower end of analysts’ 8.8% projection.
In Case You Missed It
- Anheuser-Busch (BUD) shares fell 0.9% on Thursday after the company announced corporate layoffs. The Bud Light maker plans to layoff about 350 corporate employees in the U.S. The CEO said, “These corporate structure changes will enable our teams to focus on what we do best — brewing great beer for everyone and earning our place in the moments that matter.” The company said the layoffs will not affect brewery and warehouse staff or drivers and field salespeople.