Coffee With Greta: Spotlight On Retailers
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DJIA Futures: -48 (-0.1%)
SPX Futures: -10 (-0.2%)
NASDAQ Futures: -29 (-0.2%)
Good morning friends!
Futures are slipping as traders gear up for a big week focused on retailers and consumers.
Let’s get right to it!
Retailers In Focus
This week’s economic data and earnings will be all about U.S. retailers and consumers.
The Commerce Department reports retail sales for July Tuesday morning.
Economists’ expectations are for both headline and core retail sales to rise 0.4% monthly.
Major retail earnings also start on Tuesday morning, here are the highlights:
- Tuesday AM: Home Depot (HD)
- Wednesday AM: Target (TGT). TJX Companies (TJX)
- Thursday AM: Walmart (WMT)
- Thursday PM: Ross Stores (ROST)
This data will give traders more insight into the strength of the U.S. consumer amid the Fed’s fight against inflation.
U.S. Steel Surges
United States Steel Corp. (X) shares are surging 27.7% ahead of the open after rejecting a $7.3 billion buyout proposal from rival Cleveland-Cliffs Inc (CLF).
U.S. Steel said it is reviewing “strategic alternatives” after it received several unsolicited offers.
It rejected the Cleveland-Cliffs offer because they were pushing it to accept the deal without being allowed to conduct proper due diligence.
U.S. Steel’s CEO said in a letter to Cleveland-Cliff’s CEO, “At this juncture, we cannot determine whether your unsolicited proposal properly reflects the full and fair value of the Company. For all of the above reasons, the Board has no choice but to reject your unreasonable proposal.”
Tesla Cuts Prices In China
Tesla (TSLA) shares are slipping 3% in premarket trade after cutting prices again in China.
The electric automaker lowered prices for the long-range and performance versions of the Model Y in China by about $2,000 over the weekend.
A long-range Model Y now starts at $41,400 in China vs $49,400 at the start of 2023.
The performance version now starts at $48,300 vs $55,000 at the beginning of the year.
Tesla also rolled out a new $1,100 incentive for certain Model 3 sedans in the country.
Nikola Drops On Recall Announcement
Nikola (NKLA) shares are tumbling 17.5% ahead of the open after announcing a recall related to battery issues.
The electric truck maker issued a voluntary recall for 209 of its Class 8 Tre electric trucks after an investigation into the battery packs.
Nikola said the recall is a “precautionary measure” and it will pause new sales of its battery-electric vehicles “temporarily”.
A third party investigator, Exponent, determined a coolant leak inside of a battery pack was the likely cause of a truck fire in June 2023.
The company said, “Internal investigations from Nikola’s safety and engineering teams indicate a single supplier component within the battery pack as the likely source of the coolant leak and efforts are underway to provide a field remedy in the coming weeks.”