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DJIA Futures: +99 (+0.3%)
SPX Futures: +17 (+0.4%)
NASDAQ Futures: +55 (+0.4%)
Good morning friends!
Futures are rising as traders attempt a bounce back from Tuesday’s losses.
Let’s get right to it!
Treasury yields are falling this morning with stocks rising.
The 2-year yield is down 1 basis point at 5.07% while the 10-year yield is down 4 basis points at 4.49%.
The recent increase in rates has put pressure on equities with the Dow logging its worst day since March on Tuesday.
So far in September, the Dow is down 3.2%, the S&P 500 has dropped 5.2%, and the Nasdaq has tumbled nearly 7%.
Costco (COST) shares are slipping 1.9% ahead of the open despite beating fiscal Q4 expectations on the top and bottom line.
Here’s how the warehouse-club’s results compared to analysts’ estimates:
Total comparable sales rose 1.1% year over year but just 0.2% in the U.S.
Excluding gas, comparable sales rose 3.8% overall and 3.1% in the U.S.
Costco’s average transaction amount during the quarter dropped nearly 4% globally and 4.5% in the U.S.
The company had 71 million paid household members at the end of the quarter, up nearly 8% from a year ago.
The CFO highlighted a shift in consumer spending away from discretionary items like furniture, small electronics, and jewelry.
That contributed to the 0.8% decline in e-commerce sales during the quarter.
Durable goods orders rose unexpectedly in August, boosted by strong defense spending.
The Census Bureau reported orders rose 0.2% last month vs expectations for a 0.5% decline.
Defense spending was higher during the month as the U.S. worked to replenish military hardware that has been sent to Ukraine.
Durable goods orders minus defense fell 0.7%.
Durable goods orders excluding transportation rose 0.4%.
Mortgage demand fell last week as rates hit a 23-year high.
The Mortgage Bankers Association reported total application volume fell 1.3% weekly and 25.5% year over year.
Purchase applications fell 2% weekly and 27% annually.
Refinance applications were down 1% weekly and 21% lower than a year ago.
The average 30-year fixed contract rate rose to 7.41% from 7.31%, the highest since the year 2000.