Coffee With Greta: End Of October
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DJIA Futures: +22 (0.1%)
SPX Futures: +7 (+0.2%)
NASDAQ Futures: +9 (+0.1%)
Good morning friends!
Futures are rising on the final day of what will be the third straight losing month for the S&P 500.
Let’s get right to it!
Month-End
Yields are slipping and stocks are rising as traders gear up for the final day of October and look ahead to the Fed decision.
The 10-year yield is down 6 basis points at 4.83% with the 2-year yield down 3 basis points at 5.03%.
The Central Bank’s two-day policy meeting kicks off today with the rate decision released at 2:00 p.m. ET on Wednesday.
CME Group’s FedWatch Tool shows over 98% of traders expecting the Fed to leave rates unchanged.
Several officials have said in recent weeks they do not see the need for rates to move any higher thanks to the recent surge in Treasury yields.
Pinterest Rallies On Q3 Earnings Beat
Pinterest (PINS) shares are rallying 15.5% ahead of the open after beating Q3 expectations on the top and bottom line.
Here’s how the social media company’s results compared to analysts’ estimates:
- Adjusted EPS: $0.28 vs $0.20 expected
- Revenue: $763.2 million vs $743.5 million expected
Revenue jumped 11% year over year.
Pinterest reported 482 million global monthly active users, up 8% from a year ago and higher than 473 million expected.
Average revenue per user also beat at $1.61 vs analysts’ estimates of $1.59.
The company forecast Q4 revenue growth of 11% to 13% vs 11.3% expected by analysts.
Pfizer Drops After Revenue Miss
Pfizer (PFE) shares are falling 1.2% in premarket trade after reporting mixed Q3 results.
Here’s how the pharmaceutical giant’s results compared to analysts’ estimates:
- Adjusted loss per share: $0.17 vs $0.34 expected
- Revenue: $13.23 billion vs $13.34 billion expected
Revenue plunged 42% year over year as Covid product sales plummeted.
Pfizer’s Covid vaccine brought in just $1.31 billion in sales, down 70% from a year ago and lower than $1.53 billion expected.
The Covid antiviral treatment Paxlovid posted $202 million in sales, down 97% and lower than $613.5 million expected.
The company recorded a $5.6 billion charge for inventory write-offs during the quarter due to the lower-than-expected use of Covid products.
Pfizer reiterated its lower full-year guidance from a few weeks ago.
The company expected sales of $58 billion to $61 billion this year and adjusted EPS of $1.45 to $1.65.
Caterpillar Drops On Weak Outlook
Caterpillar (CAT) shares are down 4.9% ahead of the open despite beating Q3 expectations as the market focused on weak guidance.
Here’s how the heavy equipment maker’s results compared to analysts’ estimates:
- EPS: $5.52 vs $4.80 expected
- Revenue: $16.8 billion vs $16.6 billion expected
Revenue jumped from $15 billion a year ago, thanks to higher prices.
Pricing added about $1.3 billion to sales in Q3 while volumes added about $350 million.
But Caterpillar said it only expects Q4 revenue to be “slightly” higher year-over-year, indicating it could miss expectations.
JetBlue Tumbles After Earnings
JetBlue Airways (JBLU) shares are tumbling 9.8% in premarket trade after missing Q3 expectations and cutting its full-year guidance.
Here’s how the airline’s results compared to analysts’ estimates:
- Adjusted loss per share: $0.39 vs $0.25 expected
- Revenue: $2.35 billion vs $2.38 billion expected
For Q4, JetBlue now sees a loss per share of $0.35 to $0.55 vs $0.15 expected.
The company also expects a full-year loss per share of $0.45 to $0.65 vs $0.05 to $0.40 previously.
Analysts were estimating a full-year loss of just $0.25 per share.