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Coffee With Greta: Rally Takes A Breather


DJIA Futures: -46 (-0.1%)

SPX Futures: -2 (-0.03%)

NASDAQ Futures: -24 (-0.2%)

Good morning friends!

Futures are lower as the November rally takes a breather and traders digest more retail earnings.

Let’s get right to it!

Walmart Slides On Cautious Outlook

Walmart (WMT) shares are down 6.1% ahead of the open after beating Q3 expectations but issuing cautious guidance.

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

  • Adjusted EPS: $1.53 vs $1.52 expected
  • Revenue: $160.80 billion vs $159.72 billion expected

Customer transactions rose 3.4% year over year while the average ticket increased 1.5%. 

Online sales in the U.S. jumped 24% from a year ago and 15% globally. 

Walmart forecast full-year adjusted EPS of $6.40 to $6.48, lower than $6.48 expected by analysts. 

Macy’s Pops On Earnings Beat

Macy’s (M) shares are up 8.1% in premarket trade after beating Q3 expectations. 

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

  • Adjusted EPS: $0.21 vs $0 expected
  • Revenue: $4.86 billion vs $4.82 billion expected

On an owned-plus-licensed basis, same-store sales declined 6.3% year over year vs the 7.75% decline expected.

Merchandise inventories fell 6% while lower permanent markdowns on merchandise boosted Macy’s gross margin to 40.3% from 38.7% a year ago. 

Macy’s adjusted its full-year guidance after the beat, raising the low end of its expected sales range to $22.9 billion from $22.8 billion previously. 

The retailer expects same-store sales to decline up to 7% vs its previous outlook for an up to 7.5% drop. 

Macy’s forecast full-year adjusted EPS of $2.88 to $3.13 vs $2.70 to $3.20 previously. 

Weekly Jobless Claims Rise To 3-Month High

Weekly jobless claims rose more than expected last week. 

The Labor Department reported 231,000 Americans filed initial unemployment claims. 

That was up by 13,000 from the previous week and higher than 222,000. 

It was the highest total of new claims in three months. 

Continuing claims rose for the eight week in a row to 1.83 million, the highest in seven months.

The continued increase in those claims indicates it is taking unemployed workers longer to find new jobs.

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