Coffee With Greta: SPX Tops 5,000
DJIA Futures: +73 (+0.2%)
SPX Futures: +14 (+0.3%)
NASDAQ Futures: +66 (+0.4%)
Good morning friends!
Futures are rising after an encouraging revision to December’s inflation data.
Let’s get right to it!
December CPI Revised Lower
The S&P 500 is poised to open above 5,000 this morning after briefly topping the historic milestone for the first time ever on Thursday.
Futures are up across all the major indexes with all three on track for their fifth consecutive winning week.
The government revised December’s CPI print lower this morning to a 0.2% monthly gain vs 0.3% previously.
The core CPI remained at a 0.3% monthly gain.
The revisions are part of seasonal adjustments made by the Bureau of Labor Statistics but confirm inflation was cooler faster than previously thought at the end of 2023.
That is good news for traders hoping for a Fed rate cut sooner rather than later.
CME Group’s FedWatch Tool still shows over 82% betting on no change at the March 20 Fed meeting with nearly 54% expecting the first rate cut at the May 1 meeting.
Pinterest Revenue, Outlook Disappoint
Pinterest (PINS) shares are dropping 9.3% ahead of the open after reporting mixed Q4 results and issuing weak guidance.
Here’s how the company’s results compared to analysts’ estimates:
- Adjusted EPS: $0.53 vs $0.52 expected
- Revenue: $981.3 million vs $991 million expected
Revenue rose 12% year over year while global monthly active users rose 11% to an all-time high of 498 million.
Pinterest forecast Q1 revenue between $690 million and $705 million vs $702 million expected.
Affirm Drops After Earnings
Affirm Holdings (AFRM) shares are down 6.8% in premarket trade despite beating fiscal Q2 expectations.
Here’s how the buy-now pay-later company’s results compared to analysts’ estimates:
- Loss per share: $0.54 vs $0.72 expected
- Revenue: $591.1 million vs $520.9 million expected
Revenue jumped 48% year over year.
Gross merchandise volume increased for the third straight quarter, up 32% from a year ago to $7.5 billion.
Active consumers rose 13% to 17.6 million.
Affirm forecast fiscal Q3 revenue between $530 million and $550 million vs $487.7 million expected.
Pepsico Reports Mixed Results
Pepsico (PEP) shares are up 0.1% ahead of the open after reporting mixed Q4 results.
Here’s how the beverage giant’s results compared to analysts’ estimates:
- Adjusted EPS: $1.78 vs $1.72 expected
- Revenue: $27.85 billion vs $28.4 billion expected
Revenue was down less than 1% year over year, the first quarter since 2020 the company has seen an annual decline.
Organic revenue rose 4.5%, boosted by higher prices.
But those higher prices hit demand as sales volumes declined.
Volume at Pepsi’s North American Quaker Foods division dropped 8%, Frito-Lay North America posted a 2% volume decline, and the North American beverage unit saw sales volumes down 6%.
Pepsi forecast 2024 organic revenue growth of at least 4% vs its previous outlook on the high end of 4% to 6%.