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DJIA Futures: +12 (+0.03%)

SPX Futures: +3 (+0.1%)

NASDAQ Futures: +8 (+0.1%)

Good morning friends!

Futures are flat as the market heads for a losing week on concerns about interest rates.

Let’s get right to it!

Treasury Yields Mixed

U.S. Treasury yields are mixed this morning as investors remain concerned about the future of interest rate policy. 

The 2-year yield is flat at 4.95% while the 10-year yield is up 3 basis points at 4.25%. 

Investors have become more concerned about the possibility of another rate hike after strong economic data released this week. 

CME Group’s FedWatch Tool shows 93% expect no rate hike at the September 20 meeting while about 40% are now anticipating a hike at the November 1 meeting.

Kroger Falls On Mixed Earnings Report

Kroger (KR) shares are down 1.6% ahead of the open after reporting mixed Q2 results. 

Here’s how the grocery store chain’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.96 vs $0.91 expected
  • Revenue: $33.85 billion vs $34.13 billion expected

Revenue was down 2.3% year over year while same-store sales grew 1% vs 1.3% expected. 

Kroger reiterated its full-year outlook for adjusted EPS of $4.45 to $4.60 and same-store sales growth of 1% to 2%.

The company also revealed it agreed to pay $1.2 billion in installments over the next 11 years to settle the majority of opioid claims against the company across the country. 

Kroger said this settlement will not affect its ability to close its proposed acquisition of Albertsons (ACI). 

DocuSign Jumps On Strong Earnings

DocuSign (DOCU) shares are up 1.8% in premarket trade after beating Q2 expectations on the top and bottom line and hiking its full-year outlook. 

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

  • Adjusted EPS: $0.72 vs $0.66 expected
  • Revenue: $688 million vs $678 million expected

DocuSign now expects full-year revenue between $2.73 billion and $2.74 billion vs $2.71 billion and $2.73 billion previously. 

But the company also warned about a challenging macro environment. 

The CEO said, “While we are pleased with our results, like many others, we’re seeing continued macro pressures tempering expansion rates.”

RH Tumbles On Weak Guidance

RH (RH) shares are dropping 7.8% ahead of the open after beating Q2 expectations but issuing weak Q3 guidance. 

Here’s how the luxury home good retailer’s results compared to analysts’ estimates: 

  • Adjusted EPS: $3.93 vs $2.65 expected
  • Revenue: $800 million vs $791 million expected

But the company warned the higher-end housing market, which it relies on, will likely remain rocky. 

The CEO said, “We continue to expect the luxury housing market and broader economy to remain challenging throughout fiscal 2023 and into next year as mortgage rates continue to trend at 20-year highs and the current outlook is for rates to remain unchanged until the second quarter of 2024.”

RH forecast Q3 revenue of $740 million to $760 million, below $779 million expected. 

For Q4, the company expects $760 million to $800 million in sales vs $775 million expected. 

RH raised the low end of its full-year sales outlook, now expecting $3.04 billion to $3.1 billion in revenue vs $3 billion to $3.1 billion expected. 

Analysts were forecasting $3.08 billion in full-year revenue. 

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