T3 Live
Shares

Coffee With Greta: Inflation And Earnings

Shares

DJIA Futures: +2 (+0.01%)

SPX Futures: +3 (+0.1%)

NASDAQ Futures: -33 (-0.2%)

Good morning friends!

Futures are mixed as traders digest new inflation data and the latest batch of earnings. 

Let’s get right to it!

Fed’s Preferred Inflation Gauge

The Fed’s preferred inflation gauge showed annual price increases were lower than expected at the end of 2023. 

The Commerce Department’s personal consumption expenditures (PCE) price index rose 0.2% monthly and 2.6% year over year. 

The core PCE  price index, which is the Fed’s preferred measure, rose 0.2% monthly and 2.9% annually. 

That was lighter than expectations for a 3% annual increase and down from the 3.2% change in November. 

Consumer spending rose 0.7% in December, stronger than 0.5% expected. 

Personal income growth slipped to 0.3%, in line with expectations. 

Intel Outlook Falls Short

Intel (INTC) shares are down 10.0% ahead of the open after beating Q4 expectations but issuing weak guidance. 

Here’s how the chipmaker’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.54 vs $0.45 expected
  • Revenue: $15.4 billion vs $15.15 billion expected

The company’s revenue rose 10% year over year, breaking a seven quarter streak of declining revenue. 

Intel forecast Q1 EPS of $0.13 on $12.2 billion to $13.2 billion in revenue. 

That missed analysts’ expectations of $0.33 in EPS on $14.15 billion in revenue. 

Levi Strauss Revenue Misses, Layoffs Announced

Levi Strauss (LEVI) shares are slipping 1.1% in premarket trade after reporting mixed Q4 results and issuing a weak outlook. 

Here’s how the denim giant’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.44 vs $0.43 expected
  • Revenue: $1.64 billion vs $1.66 billion expected

Revenue rose 3% year over year. 

Levi projected revenue will rise between 1% and 3% for the full fiscal year, lower than 4.7% expected. 

The company forecast full-year earnings of $1.15 to $1.25 per share vs $1.33 expected. 

Levi also announced it will lay off at least 10% of its global corporate workforce as part of a restructuring.

Those cuts are expected to take place in the first half of this year and could impact up to 15% of corporate employees. 

In Case You Missed It

  • New home sales rose more than expected in December. The Census Bureau reported sales of newly built homes jumped 8% to a seasonally adjusted annual rate of 664,000 units last month. That was stronger than expectations for an SAAR of 649,000. The increase came as mortgage rates dropped below 7%, increasing demand in the market. The median sales price of a new home sold in December fell to $413,200 from $426,000 in November. The supply of new homes for sale fell 6.8% on a monthly basis. New home sales were up 4.4% year over year.

Leave a Comment: