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DJIA Futures: -28 (-0.1%)

SPX Futures: -3 (-0.1%)

NASDAQ Futures: +22 (+0.1%)

Good morning friends!

Futures are mixed as this week’s Fed-fueled surge takes a breather.

Let’s get right to it!

New York Fed President Speaks

New York Fed President John Williams says the rate cuts are not a topic of discussion at the Fed yet. 

In an interview with CNBC this morning, Williams said, “We aren’t really talking about rate cuts right now. We’re very focused on the question in front of us, which as chair Powell said… is, have we gotten monetary policy to a sufficiently restrictive stance in order to ensure the inflation comes back down to 2%? That’s the question in front of us.”

His comments appeared to be an attempt to rein in some market enthusiasm after the updated dot plot showed plans for three rate cuts in 2024. 

Williams said the Fed is ready and willing to tighten policy again if the data warranted it. 

He said, “One thing we’ve learned even over the past year is that the data can move and in surprising ways, we need to be ready to move to tighten the policy further, if the progress of inflation were to stall or reverse.” 

Key Manufacturing Index Tumbles

The Empire State manufacturing index fell sharply this month into negative territory. 

The index dropped 24 points to -14.5. 

That was lower than economists’ expectations for 4 and marked the lowest reading in four months. 

The new orders index dropped for the third straight month by 6 points to -11.3. 

The six-month expectations index rose 13 points to 12.1.

Costco Rises After Earnings Beat

Costco (COST) shares are up 1.9% ahead of the open after beating fiscal Q1 expectations. 

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

  • EPS: $3.58 vs $3.41 expected
  • Revenue: $57.8 billion, in line with expectations

Same-store sales rose 3.8% year over year while e-commerce same-store sales jumped 6.3%. 

Costco added 72 million paid household members during the quarter, up 7.6% from a year ago. 

The company also announced a special cash dividend of $15 per common share, payable January 12.

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