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DJIA Futures: +154 (+0.4%)

SPX Futures: +8 (+0.2%)

NASDAQ Futures: -1 (-0.01%)

Good morning friends!

Futures are mostly higher as traders digest new economic data. 

Let’s get right to it!

PCE Inflation Ticks Higher, As Expected

The Fed’s preferred inflation gauge rose as expected in July. 

The Bureau of Economic Analysis’ PCE price index rose 0.2% monthly and 3.3% annually. 

That was in line with economists’ estimates but higher than the 3% annual rate in June. 

The core PCE price index rose 0.2% monthly and 4.2% year over year. 

That was also in line with economists’ expectations but a tick higher from the 4.1% annual rate in June. 

Prices for services rose 0.4% last month while goods price fell 0.3%. 

Food prices were up 0.3% and energy prices rose 0.1%.

The report also showed consumer spending was stronger than expected. 

Personal spending rose 0.8% monthly vs 0.7% expected and up from 0.5% in June. 

But income growth pulled back slightly. 

Personal incomes rose 0.2% monthly in July vs 0.3% expected and 0.3% in June.

Weekly Jobless Claims Hit 4-Week Low

Weekly jobless claims fell unexpectedly last week. 

The Labor Department reported 228,000 Americans filed initial claims for unemployment benefits. 

That was down by 4,000 from the previous week and lower than 235,000 expected.

It was the lowest level of claims since the week ended July 29.

The previous week was also revised higher to 232,000 vs 230,000 previously. 

Continuing claims rose by 28,000 to 1.73 million in the week ending August 19.

Dollar General Tumbles On Earnings Miss

Dollar General (DG) shares are tumbling 16.2% ahead of the open after missing Q2 expectations. 

Here’s how the discount retailer’s results compared to analysts’ estimates: 

  • EPS: $2.13 vs $2.47 expected
  • Revenue: $9.80 billion vs $9.93 billion expected

Same-store sales decreased 0.1% from Q1 as customer traffic slowed. 

The CEO said, “While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position.”

But Dollar General slashed its full-year outlook after the miss. 

The company now sees net sales growth between 1.3% and 3.3% this year compared to 3.3% to 5% previously. 

Dollar General also expects full-year earnings to decline between 34% and 22% compared to previous guidance for an 8% drop to flat growth.

Salesforce Jumps After Earnings Beat, Strong Guidance

Salesforce (CRM) shares are up 6.5% in premarket trade after beating Q2 expectations on the top and bottom line. 

Here’s how the software company’s results compared to analysts’ estimates:

  • Adjusted EPS: $2.12 vs $1.90 expected
  • Revenue: $8.60 billion vs $8.53 billion expected

Revenue increased 11% year over year. 

Salesforce forecast Q3 adjusted EPS between $2.05 and $2.06 on revenue between $8.7 billion and $8.72 billion vs $1.83 EPS and $8.66 billion in revenue expected. 

The company also hiked its full-year outlook, now expecting adjusted EPS between $8.04 and $8.06 on $34.7 billion to $34.8 billion in revenue. 

That implies 11% revenue growth and topped expectations for adjusted EPS of $7.45 on $34.65 billion in revenue.

In Case You Missed It

  • Pending home sales rose unexpectedly in July. The National Association of Realtors reported the number of purchase contracts signed last month rose 0.9% vs expectations for a 0.5% decrease. Transactions were still down 14% year over year. These pending sales are expected to close 30 to 60 days after the contract is signed.

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