All posts by Greta Wall
Coffee With Greta: Inflation Still Rising
DJIA Futures: +67 (+0.2%) SPX Futures: +24 (+0.5%) NASDAQ Futures: +116 (+0.6%) Good morning friends! Futures are higher after the release of new inflation data. Let’s get right to it! February CPI Inflation pressures were slightly hotter than expected in February, keeping the Fed on track to continue waiting for rate cuts. The Bureau of Labor Statistics’ consumer price index rose 0.4% monthly and 3.2% year over year last month. That was in line with monthly estimates and hotter than 3.1% annually expected. The core CPI rose 0.4% monthly and 3.8% annually vs 0.3% monthly and 3.7% annually expected. That core rate remains well above the Fed’s 2% target. The headline number was boosted by a 2.3% increase in energy prices, while food prices were flat, and shelter costs rose 0.4%. The energy and shelter increases accounted for more than 60% of the total gain. Oracle Jumps On Earnings Beat Oracle (ORCL) shares are up 11.5% ahead of the open after beating fiscal Q3 earnings expectations. Here’s how the cloud company’s results compared to analysts’ estimates: Adjusted EPS: $1.41 vs $1.38 expected Revenue: $13.28 billion vs $13.3 billion expected Although revenue was a bit lighter than estimated, it was still up 7% year over year. Net income climbed 27% from a year ago. Sales in Oracle’s cloud services and license support segment rose 12% to $9.96 billion vs $9.94 billion expected. But cloud license and on-premise sales fell 3% to $1.26 billion, hardware revenue fell 7% to $754 million, and sales in the services division slid 5% to $1.31 billion. Oracle forecast fiscal Q4 EPS between $1.62 and $1.66 vs $1.64 expected. The company expects revenue growth between 4% and 6% year over year. Kohl’s Slips On Mixed Results Kohl’s (KSS) shares are falling 3.1% in premarket trade after reporting mixed results for the fiscal fourth quarter. Here’s how the retailer’s results compared to analysts’ estimates: EPS: $1.67 vs $1.28 expected Revenue: $5.7 billion vs $5.8 billion expected Same-store sales fell 4.3% year over year, more than expected. Kohl’s said it expects full-year net sales to range between down 1% and up 1% with same-store sales ranging between flat and up 2%. The company forecast full-year EPS between $2.10 and $2.70 vs $2.62 expected. Southwest Cuts Outlook Due To Boeing Delays Southwest Airlines (LUV) shares are down 8.5% ahead of the open after the company said it will have to cut its capacity plans and reevaluate financial forecasts for the year. The airline cited delivery delays from Boeing (BA), which is its sole supplier of planes. Boeing has informed Southwest’s leaders to expect 46 Boeing 737 Max 8 planes this year, down from 58 previously. Southwest had originally expected Boeing to deliver 79 Max planes, including some of the smaller Max 7. In a filing, the airline said it is “reevaluating all prior full year 2024 guidance, including the expectation for capital spending.”
Continue Reading -->Coffee With Greta: Key Data Week
DJIA Futures: -159 (-0.4%) SPX Futures: -20 (-0.4%) NASDAQ Futures: -93 (-0.5%) Good morning friends! Futures are slipping, extending Friday’s reversal. Let’s get right to it! Inflation Week Traders are awaiting key data for the Fed this week with new inflation numbers set to be released. The February CPI will be released Tuesday morning ahead of the market open. That will be followed by February retail sales and the PPI on Thursday morning. This is the final inflation data that will be released ahead of the Fed’s next policy meeting next week. CME Group’s FedWatch Tool shows no expectations for a rate change at that meeting. But the decision will come with an updated Summary of Economic Projections which should give more clues on when the bank plans to begin rate cuts this year. Traders are currently betting on the first cut at the June meeting. Bitcoin Hits Record High Bitcoin is trading in record territory this morning after Britain’s Financial Conduct Authority said it would allow exchanges to list crypto-linked exchange-traded products. The coin hit a high of $72,211.51 earlier in the morning, a fresh all-time high. The London Stock Exchange said it would begin accepting applications for crypto exchange traded notes, or ETNs. The U.K. allows only institutional investors, not retail investors, to buy crypto-linked ETNs or derivatives. The ETNs are different from the spot bitcoin ETFs approved in the U.S. ETNs are an unsecured debt security issued by a bank and linked to a market index or other benchmark that promises to pay out the full value at maturity. Analysts say the move will lead to increased institutional investment in bitcoin and other cryptocurrencies which will drive the price of bitcoin higher. Crypto-linked stocks are rallying alongside bitcoin with Coinbase (COIN) up 5.9% ahead of the open, Marathon Digital (MARA) rising 4.3%, and MicroStrategy (MSTR) jumping 9.3%. Oil Extends Losses Oil prices are starting the new week lower, extending last week’s losses. West Texas Intermediate crude futures are down 0.4% at under $78 bbl while Brent crude futures are down 0.4% at under $82 bbl. Those contracts dropped 2.45% and 1.75% respectively last week amid weak demand in China and comments from the International Energy Agency that the market should be well supplied this year. The IEA and OPEC will release updated monthly supply reports later this week. The upcoming inflation data will also be key for the oil market as investors await rate cuts that typically stimulate economic growth and fuels higher crude demand.
Continue Reading -->Coffee With Greta: Rising Unemployment Hits Yields
DJIA Futures: +5 (+0.01%) SPX Futures: +11 (+0.2%) NASDAQ Futures: +29 (+0.2%) Good morning friends! Futures are higher following the jobs report. Let’s get right to it! Unemployment Rises The U.S. economy added more jobs than expected in February while the unemployment rate rose unexpectedly. The Labor Department reported employers added 275,000 workers last month vs 198,000 expected. The unemployment rate rose to 3.9% vs expectations for it to be unchanged at 3.7%. It was the highest unemployment rate since January 2022. That increase in unemployment came even as the labor force participation rate held steady at 62.5%. The change in the unemployment rate appeared partly due to lower revisions in the previous two months. January’s job growth was revised lower by 124,000 to +229,000 while December was revised down by 43,000 to +290,000. Wages rose 0.1% monthly in February, below 0.2% expected, and were up 4.3% year over year vs 4.5% expected. The healthcare sector saw the strongest growth last month adding 67,000 jobs, government added 52,000, restaurants and bars added 42,000, social assistance rose by 24,000, transportation and warehousing added 20,000, construction added 23,000, and retail trade added 19,000. Yields Fall After Jobs Report Treasury yields are lower this morning following that unexpected uptick in the unemployment rate. The 10-year yield is down two basis points at 4.07% while the 2-year yield is down eight basis points at 4.44%. The rising unemployment rate is a good sign for those hoping for a Fed rate cut sooner rather than later. CME Group’s FedWatch Tool currently shows the market betting on the first cut at the bank’s June meeting. Costco Slips After Revenue Miss Costco (COST) shares are down 3.4% ahead of the open after reporting mixed Q4 results. Here’s how the big box retailer’s results compared to analysts’ estimates: EPS: $3.92 vs $3.63 expected Revenue: $58.4 billion vs $59.1 billion Revenue was up 5% year over year while same-store sales rose 5.6% vs 5% expected. E-commerce sales rose more than 18% from a year ago. In Case You Missed It Rivian (RIVN) shares surged 13.4% on Thursday after the company unveiled three new EV models and announced new cost savings efforts. The electric automaker’s CEO announced the upcoming R2 SUV and two new crossovers, the R3 and R3X during a livestreamed event. Rivian said it will pause construction on its new plant in Georgia and shift production of the new R2 from that location to its existing plant in Illinois. The move is expected to save the company $2.25 billion.
Continue Reading -->Coffee With Greta: Rebound Continues
DJIA Futures: +89 (+0.2%) SPX Futures: +21 (+0.4%) NASDAQ Futures: +105 (+0.6%) Good morning friends! Futures are higher, continuing Wednesday’s rebound. Let’s get right to it! Fed Chair Testimony Day 2 Fed Chair Jerome Powell will testify in the Senate Banking Committee today for day two of his Semi-Annual Monetary Policy Report to Congress. Today’s comments are expected to be similar to Wednesday’s testimony in the House. Powell told the House Financial Services Committee that he believes the bank will cut rates this year but they first need more evidence to start cuts. He did not express concern about the pace of inflation, saying “it has eased notably over the past year”. Powell said cutting rates too soon could “result in a reversal of progress” against inflation while cutting “too late or too little” could weaken the economy and hiring. CME Group’s FedWatch Tool shows traders expecting the first rate cut at the Fed’s June meeting. Weekly Jobless Claims Unchanged Weekly jobless claims were unchanged last week as the labor market maintains strength. The Labor Department reported 217,000 Americans filed initial claims for unemployment benefits. That was unchanged from the week before and in line with expectations. Continuing claims rose by 8,000 to 1.906 million vs 1.88 million expected in the week ending February 24. Trade Deficit Widens The U.S. trade deficit widened more than expected in January. The Commerce Department reported the gap jumped 5.1% at the beginning of the year to $67.4 billion. It was the largest deficit in nine months and higher than $63.4 billion expected. Exports totaled $257.2 billion in January while imports totaled $324.6 billion. The deficit decreased 4.1% compared to January 2023. Kroger Jumps On Earnings Beat Kroger (KR) shares are up 4.5% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the grocery operator’s results compared to analysts’ estimates: Adjusted EPS: $1.34 vs $1.13 expected Revenue: $37.1 billion vs $37 billion expected The company said lower supply-chain costs helped offset lost inventory due to increased theft during the quarter. For the current fiscal year, Kroger forecast adjusted EPS between $4.30 and $4.50 vs $4.30 expected. In Case You Missed It There were fewer job openings than expected in January. The Labor Department’s job openings and labor turnover survey shows the number of available jobs fell by 26,000 to 8.863 million vs 8.9 million expected. There were 1.45 jobs available for every unemployed person, up from 1.42 in December. Hirings slowed by 100,000 to 5.867 million while quits decreased by 54,000 to 3.385 million. That was the lowest quits rate in three and a half years. New York Community Bancorp (NYCB) shares surged on Wednesday after announcing a new capital raise and leadership shakeup. The bank said it has agreed to a deal with Liberty Strategic Capital, Hudson Bay Capital, and Reverence Capital Partners to raise $1 billion in capital. Former Treasury Secretary Steven Mnuchin, head of Liberty Strategic Capital, will also be one of four new members to join NYCB’s board of directors.
Continue Reading -->Coffee With Greta: Fed Chair Takes The Hot Seat
DJIA Futures: +187 (+0.5%) SPX Futures: +31 (+0.6%) NASDAQ Futures: +165 (+0.9%) Good morning friends! Futures are higher as traders await day one of the Fed Chair’s testimony in Congress. Let’s get right to it! Fed Chair To Testify Fed Chair Jerome Powell is set to testify in the House Financial Services Committee today. The testimony is day one of his Semi-Annual Monetary Policy Report to Congress. In his prepared remarks, Powell reiterates the Central Bank is not yet ready to start cutting rates. He says, “In considering any adjustments to the target range for the policy rate, we will carefully assess the incoming data, the evolving outlook, and the balance of risks. The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” Powell emphasizes that the Fed will remain data dependent for future rate decisions as they remain concerned about not losing the progress made against inflation so far. He says, “We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. But the economic outlook is uncertain, and ongoing progress toward our 2 percent inflation objective is not assured.” His testimony is set to begin at 10:00 a.m. ET. Private Job Growth Weaker Than Expected The U.S. private sector added fewer jobs than expected in February. Payroll firm ADP reported private employers added 140,000 jobs last month vs 150,000 expected. That was still an increase from the revised 111,000 in January. Leisure and hospitality led the gains adding 41,000 jobs, construction added 28,000, trade, transportation and utilities added 24,000, finance added 17,000, and other services added 14,000. Overall, the services sector added 110,000 jobs while goods producers added just 30,000. Annual pay increased 5.1%, the smallest increase ADP has seen since August 2021. This data comes ahead of the official February jobs report on Friday which is expected to show the U.S. economy added 198,000 jobs with the unemployment rate unchanged at 3.7%. Nordstrom Tumbles On Weak Guidance Nordstrom (JWN) shares are dropping 11.1% ahead of the open after beating Q4 expectations but issuing weak guidance. Here’s how the retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.96 vs $0.88 expected Revenue: $4.42 billion vs $4.39 billion Nordstrom forecast full-year revenue will range from a 2% decline to a 1% gain year over year. The company expects full-year EPS between $1.65 and $2.05 Foot Locker Plunges After Earnings Foot Locker (FL) shares are tumbling 15.5% in premarket trade after reporting a loss in the holiday quarter and issuing a soft outlook. Here’s how the shoe retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.38 vs $0.32 expected Revenue: $2.38 billion vs $2.28 billion expected On an unadjusted basis, Foot Locker lost $389 million, or $4.13 per share, in the quarter. Sales rose 2% year over year. The company forecast full-year adjusted EPS between $1.50 and $1.70 vs $1.40 to $2.30 expected. Foot Locker expects full-year sales to be between down 1% and up 1%. Mortgage Demand Surges Weekly mortgage demand surged last week as more homes were put on the market. The Mortgage Bankers Association reported purchase application volume jumped 11% from the previous week but was still down 8% from a year ago. That increase came as there were 14.8% more homes actively for sale in February vs the same time last year. The average 30-year fixed contract rate decreased slightly to 7.02% from 7.04%. Refinance applications rose 8% weekly and fell 2% annually.
Continue Reading -->Coffee With Greta: Tech Pullback
DJIA Futures: -142 (-0.4%) SPX Futures: -21 (-0.4%) NASDAQ Futures: -123 (-0.7%) Good morning friends! Futures are slipping as traders await key data this week. Let’s get right to it! Tech Pullback Stocks are falling this morning, continuing Monday’s decline that pulled the Nasdaq back from record highs. The tech-heavy index slipped 0.4% on Monday while the S&P 500 fell 0.12% and the Dow dropped 0.25%. Both the S&P and Nasdaq were in record territory ahead of Monday’s drop. The drop in tech stocks came even as major AI leaders rallied with Nvidia (NVDA) rising 3% and Super Micro Computer (SMCI) surging 18%. Traders are awaiting key events this week with the Fed Chair set to testify in Congress and new labor market data beginning on Wednesday. AMD’s China Chips Blocked Advanced Micro Devices (AMD) shares are falling 2.2% ahead of the open after hitting a regulatory roadblock for its AI chip made for China. Bloomberg reported the company will need to apply for an export license for the new chip. AMD designed the chip to have lower performance than its premium products. But the Commerce Department did not clear it for sale in China, saying it was still too advanced. The U.S. has restricted sales of the most advanced semiconductor technologies to China, citing national security concerns. The restrictions have also impacted Nvidia’s (NVDA) sales in China. Target Surges After Earnings Target (TGT) shares are rallying 9.3% in premarket trade after beating Q4 expectations on the top and bottom line. Here’s how the retailer’s results compared to analysts’ estimates: EPS: $2.98 vs $2.42 expected Revenue: $31.92 billion vs $31.83 billion expected Comparable sales declined 4.4% year over year, dropping for the third quarter in a row. The company expects that trend to continue. Target forecast Q1 adjusted EPS between $1.70 and $2.10 with comparable sales expected to decline between 3% and 5%. The retailer expects full-year comparable sales to be flat to up to 2% and adjusted EPS between $8.60 and $9.60.
Continue Reading -->Coffee With Greta: Digesting The Rally
DJIA Futures: -178 (-0.5%) SPX Futures: -10 (-0.2%) NASDAQ Futures: -1 (-0.01%) Good morning friends! Futures are slipping as traders digest last week’s record-breaking run. Let’s get right to it! Upcoming S&P 500 Members Rise Super Micro Computer (SMCI) shares are rallying 16.9% ahead of the open with Deckers Outdoor (DECK) up 4.5% after the S&P 500 announced Friday the two companies will join the blue-chip index later this month. They will replace Whirlpool (WHR) and Zions Bancorp (ZION) as of the market open on March 18. SMCI currently has a market cap of over $50 billion while DECK is valued at about $22 billion. JetBlue, Spirit Ditch Merger Agreement Spirit Airlines (SAVE) shares are plunging 19.7% in premarket trade after announcing it is ending its agreement to merge with JetBlue Airways (JBLU). JBLU shares are up 4.3%. The airlines have decided to ditch the deal after losing a federal antitrust lawsuit that challenged it in January. The companies appealed that decision soon after as required under the merger agreement but it was not expected to succeed. In a note to staff, JetBlue’s CEO said the merger was, “a bold and courageous plan intended to shake up the industry status quo, and we were right to compete with Frontier and go for an opportunity that would have supercharged our growth and provided more opportunities for crewmembers.” She added, “However, with the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low.” Investment Firms Increase Macy’s Buyout Offer Macy’s (M) shares are jumping 14.2% ahead of the open after Arkhouse Management and Brigade Capital Management increased their buyout offer for the department store chain. The firms are now offering to acquire the M stock they do not already own for $24 per share vs the previous offer for $21 per share. That represents a premium of about 33% to the closing price of $18.01 per share on Friday and values Macy’s at $6.6 billion. Arkhouse said, “We continue to offer the company an attractive alternative solution through a sale of the company at a substantial premium. This would provide Macy’s stockholders with significant value and immediate liquidity.” Macy’s said, “The Macy’s Inc Board will carefully review and evaluate the latest proposal.” Bitcoin Tops $65,000 Bitcoin is starting the new week higher, inching closer to its all-time high. The cryptocurrency is currently up 4.1% at $65,334.82. It touched $65,658.10 earlier this morning, the highest level since November 2021. Bitcoin gained 21% last week, marking its best week in nearly a year. The coin hit an all-time high of $68,982.20 intraday in November 2021.
Continue Reading -->Coffee With Greta: AI-Fueled Record
DJIA Futures: -34 (-0.1%) SPX Futures: +1 (0.02%) NASDAQ Futures: +7 (+0.04%) Good morning friends! Futures are flat after Thursday’s record-breaking climb. Let’s get right to it! Record Highs The Nasdaq and the S&P 500 both ended the month of February at record highs. The tech-heavy Nasdaq ended Thursday’s session 0.6% higher at 16,082.33, the first record close since 2021. The S&P rose 0.4% to a record close of 5,097.27. All the major indexes rose in February with the Dow ending the month 1.8% higher, the S&P 500 rising 4.6%, and the Nasdaq leading with a 5.2% monthly gain. It was the Dow’s first four-month winning streak since May 2021. Dell Surges On Earnings Beat, Strong AI Demand Dell Technologies (DELL) shares are surging 27.3% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the computer software company’s results compared to analysts’ estimates: EPS: $2.20 vs 1.73 expected Revenue: $22.32 billion vs $22.16 billion expected The stock is on track to open at a fresh all-time high following that beat. Dell reported a surge in demand for its artificial intelligence servers as its backlog rose to $2.9 billion from $1.6 billion in Q3. The majority of those servers are powered by Nvidia (NVDA) H100 chips. Dell’s COO also said the company is seeing strong interest in servers equipped with the next generation of AI chips, including Advanced Micro Devices (AMD)’s MI300x and Nvidia’s H200. That demand is helping to push NVDA shares up 1.1% and AMD shares up 2.7%. Hewlett Packard Drops On Revenue Drop Hewlett Packard Enterprise (HPE) shares are falling 3.2% in premarket trade after reporting a steep drop in fiscal Q1 revenue. Here’s how the information technology company’s results compared to analysts’ estimates: Adjusted EPS: $0.48 vs $0.45 expected Revenue: $6.76 billion vs $7.09 billion expected Revenue tumbled 14% year over year. HPE forecast fiscal Q2 revenue between $6.6 billion and $7 billion vs $7.1 billion expected. In Case You Missed It Pending home sales dropped unexpectedly in January. The National Association of Realtors reported the number of contracts signed to purchase a home fell 4.9% vs expectations for a 1.5% increase. It was the largest monthly drop in pending sales since August 2023 as rates pushed higher at the end of January. Transactions were down 8.8% year over year.
Continue Reading -->Coffee With Greta: Inflation Data As Expected
DJIA Futures: +50 (0.1%) SPX Futures: +15 (+0.3%) NASDAQ Futures: +96 (+0.5%) Good morning friends! Futures are higher after the release of new inflation data that was in line with expectations. Let’s get right to it! PCE As Expected The Fed’s preferred inflation gauge rose as expected in January. The Bureau of Economic Analysis’ personal consumption expenditures (PCE) price index rose 0.3% monthly and 2.4% year over year. The core PCE price index, which excludes food and energy, rose 0.4% monthly and 2.8% annually. Both numbers were in line with economists’ expectations. Services prices rose 0.6% monthly and 3.9% annually while goods prices fell 0.2% monthly and were down 0.5% from a year ago. Food prices rose 0.5% monthly and 1.4% annually while energy prices slid 1.4% monthly and dropped 4.9% annually. Personal incomes rose far more than anticipated, up 1% vs 0.3% expected. Personal spending decreased 0.1% vs expectations for a 0.2% gain. Weekly Jobless Claims Rise Weekly jobless claims rose more than expected last week. The Labor Department reported 215,000 Americans filed initial claims for unemployment benefits. That was up by 13,000 from the week before and higher than 210,000 expected. Continuing jobless claims rose by 45,000 to 1.91 million in the week ending February 17. Salesforce Rises After Earnings Beat Salesforce (CRM) shares are up 1.1% ahead of the open after beating Q4 expectations on the top and bottom line. Here’s how the software company’s results compared to analysts’ estimates: Adjusted EPS: $2.29 vs $2.26 expected Revenue: $9.29 billion vs $9.22 billion expected Total revenue was up 10.8% year over year while professional services revenue dropped 9%. Salesforce forecast Q1 adjusted EPS of $2.37 to $2.39 on $9.12 billion to $9.17 billion in revenue. That topped analysts’ expectations for $2.20 in adjusted EPS on $9.15 billion in revenue. For the full fiscal year, the company sees adjusted EPS between $9.68 and $9.76 on $37.7 billion to $38 billion in revenue. That implies 8.6% growth in the middle of the range. Analysts were forecasting full-year EPS of $9.57 on $38.62 billion in revenue. Snowflake Tumbles Snowflake (SNOW) shares are plunging 22.3% in premarket trade after beating Q4 expectations but announcing a surprise executive change. Here’s how the cloud software company’s results compared to analysts’ estimates: Adjusted EPS: $0.35 vs $0.18 expected Revenue: $774 million vs $760 million expected Total revenue increased 32% year over year with product revenue up 33%. Salesforce announced CEO Frank Slootman is retiring and will be replaced by former Google executive Sridhar Ramaswamy. In a statement, Slootman said, “There is no better person than Sridhar to lead Snowflake into this next phase of growth and deliver on the opportunity ahead in AI and machine learning. He is a visionary technologist with a proven track record of running and scaling successful businesses.” Snowflake forecast Q1 product revenue between $745 million and $750 million vs $759 million expected. The company said its Q1 adjusted operating margin would be 3% vs 7.2% expected.
Continue Reading -->Coffee With Greta: Waiting Game
DJIA Futures: -110 (-0.3%) SPX Futures: -15 (-0.3%) NASDAQ Futures: -83 (-0.5%) Good morning friends! Futures are falling as traders await new inflation data on Thursday. Let’s get right to it! Q4 GDP Revised Lower The U.S. economy expanded less than originally estimated in the fourth quarter. The Commerce Department’s first revision shows GDP expanded at a 3.2% annual pace at the end of 2023 vs the first estimate of 3.3%. Economists were expecting GDP to be unchanged. Consumer spending was revised higher to 3.0% growth from 2.8%. But business investment was weaker than originally reported. Total spending rose 0.9% vs the 2.1% initial estimate. Beyond Meat Soars On Revenue Beat Beyond Meat (BYND) shares are surging 63.6% ahead of the open after beating Q4 revenue expectations and detailing plans to cut costs this year. Here’s how the faux meat company’s results compared to analysts’ estimates: Loss per share: $0.92 vs $0.88 expected Revenue: $73.7 million vs $66.7 million expected Revenue dropped 7.8% year over year while sales volume jumped 8%. The CEO said Beyond Meat would “steeply reduce” operating expenses and cash use in 2024. The company forecast full-year net revenue between $315 million and $345 million vs $343.8 million expected. For the first quarter, Beyond expects revenue between $70 million and $75 million. TJX Reports Strong Holiday Quarter TJX Companies (TJX) shares are up 0.5% in premarket trade after beating Q4 expectations on the top and bottom line. Here’s how the retailer’s results compared to analysts’ estimates: EPS: $1.22 vs $1.12 expected Revenue: $16.41 billion vs $16.21 billion expected Sales jumped 13% year over year during the key holiday quarter. TJX forecast Q1 EPS between $0.84 and $0.86 vs $0.82 to $0.93 expected. For the full year, the company expects EPS of $3.94 to $4.02 vs $3.88 to $4.40 expected. Rates Drag Down Mortgage Demand Mortgage demand tumbled last week as rates remained above 7%. The Mortgage Bankers Association reported total application volume dropped 5.6% from the previous week. Purchase applications fell 5% weekly and 12% year over year. Refinance applications dropped 7% weekly and 1% annually. The drop came as the average 30-year fixed contract rate decreased to 7.04% from 7.06%, up about 0.25% compared to a year ago. Rates have pushed further above 7% this week with Mortgage News Daily showing the average 30-year fixed at 7.16% as of Tuesday.
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