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DJIA Futures: -59 (-0.2%)
SPX Futures: -8 (-0.2%)
NASDAQ Futures: -38 (-0.2%)
Good morning friends!
Futures are sliding as the S&P 500 hovers near record territory.
Let’s get right to it!
Treasury yields are continuing to fall this morning with the 10-year hitting its lowest level in nearly five months.
The 10-year yield is down 6 basis points at 3.88% while the 2-year yield is down 7 basis points at 4.37%.
The 10-year hit a low of 3.87% earlier this morning, its lowest since July 27.
FedEx (FDX) shares are dropping 11.2% ahead of the open after missing fiscal Q2 expectations and lowering its full-year outlook.
Here’s how the shipping giant’s results compared to analysts’ estimates:
Profit jumped 25% year over year while revenue fell 3%.
FedEx credited its cost-cutting initiatives for the increase in profit.
The company said it now expects a low-single-digit decline in revenue for the full-year down from its previous forecast for sales to be flat.
FedEx maintained its full-year EPS guidance of $17.75.
General Mills (GIS) shares are falling 3.8% in premarket trade after reporting mixed fiscal Q2 results and lowering its full-year sales guidance.
Here’s how the cereal maker’s results compared to analysts’ estimates:
In North America, General Mills’ foodservice net sales were flat, retail net sales fell 2% and net sales in the pet segment were down 4%.
International foodservice net sales jumped 2%.
The company now expects fiscal-year organic net sales to range between down 1% to flat, down from its previous outlook for 3% to 4% growth.
General Mills said that lower outlook reflects “a slower volume recovery in fiscal 2024.”
Adjusted operating profit and adjusted diluted EPS are now expected to rise 4% to 5% vs 4% to 6% previously.
Mortgage demand fell last week despite a continued decline in rates.
The Mortgage Bankers Association reported purchase applications fell 1% weekly and 18% year over year.
Refinance applications dropped 2% weekly but was 18% higher than the same week a year ago.
The decrease came despite the average 30-year fixed contract rate falling to 6.83% from 7.07%.
That was the lowest rate since June 2023.
The MBA said it expects the Fed’s plans for rate cuts to be good news for the housing market.
The group said, “We expect that this path for monetary policy should support further declines in mortgage rates, just in time for the spring housing market. We are forecasting modest growth in new and existing home sales in 2024, supporting growth in purchase originations.”