Coffee With Greta: Tame Inflation
Register now for tomorrow’s free pro trader Q&A on LinkedIn with Scott Redler! DJIA Futures: +52 (+0.1%) SPX Futures: +1 (+0.02%) NASDAQ Futures: +21 (+0.1%) Good morning friends! Futures are higher after the release of the November CPI. Let’s get right to it! Inflation Remains Tame U.S. inflation pressures rose slightly more than expected on a monthly basis in November but remain muted. The Bureau of Labor Statistics’ consumer price index rose 0.1% monthly and 3.1% year over year. Economists were expecting no change monthly while the annual gain was in line with estimates. The core CPI rose 0.3% monthly and 4% annually, as expected. This data comes ahead of the final Fed decision of 2023 on Wednesday. CME Group’s FedWatch Tool shows 98.4% of traders expecting no rate hike at that meeting. CNBC’s latest Fed Survey shows expectations for rate cuts to begin in mid-2024. More than half of respondents to that survey expect a rate cut in June and 69% in July. Overall, the survey shows an expectation of about 85 basis points worth of cuts in 2024. Oracle Tumbles On Revenue Miss Oracle (ORCL) shares are dropping 9.4% ahead of the open after missing fiscal Q2 revenue expectations. Here’s how the software company’s results compared to analysts’ estimates: Adjusted EPS: $1.34 vs $1.32 expected Revenue: $12.94 billion vs $13.05 billion expected Revenue grew 5% year over year while net income jumped 44%. The overall miss was due to lower than expected revenue at its services business and its cloud and on premises licenses business. Oracle forecast fiscal Q3 adjusted EPS of $1.35 to $1.39 and 6% to 8% revenue growth. Analysts were anticipating guidance for adjusted EPS of $1.37 and 7.6% revenue growth. Hasbro Drops After Layoff Announcement Hasbro (HAS) shares are down 4.4% in premarket trade after announcing it will lay off about 1,100 employees. The cuts come as the toy maker is struggling with soft sales even into the busy holiday shopping season. In a memo to employees the CEO said, “While we have made some important progress across our organization, the headwinds we saw through the first nine months of the year have continued into Holiday and are likely to persist into 2024.” Hasbro warned trouble was ahead in its latest earnings report in October when the company slashed its full-year outlook. Ford Cuts 2024 F-150 Lightning Production Plans Ford (F) shares are up 0.1% ahead of the open after announcing it will cut planned production of its electric F-150 Lightning in half next year. The company’s updated production plans call for an average volume of around 1,600 F-150 Lightnings per week starting in January. That’s down from previous plans to produce roughly 3,200 of the trucks per week. The cuts come amid lower than anticipated demand for the electric trucks. Ford executives have said the company will match production to demand. The automaker sold 4,400 F-150 Lightnings in November, bringing the total so far in 2023 to 20,365.
Continue Reading -->Coffee With Greta: Fed Week
Register now for Wednesday’s free pro trader Q&A on LinkedIn with Scott Redler! DJIA Futures: -20 (-0.1%) SPX Futures: -4 (-0.1%) NASDAQ Futures: -22 (-0.1%) Good morning friends! Futures are slipping as traders look ahead to the final Fed meeting of the year. Let’s get right to it! Big Week This will be the last big week of economic data for traders of 2023. Things kick off with the release of the November CPI on Tuesday morning. Then the November PPI is released Wednesday morning ahead of the last Fed decision of the year that afternoon. Thursday will feature weekly jobless claims, November retail sales, import prices, and business inventories. Friday rounds out the week with the Empire State manufacturing index, industrial production, and capacity utilization. The Fed decision is the highlight of the week with CME Group’s FedWatch Tool showing 98.4% of traders expecting no rate hike. The market will be analyzing the language of the FOMC statement and chairman Jerome Powell’s press conference for any signals on when rate cuts will begin. Occidental Petroleum Agrees To Buy Private Energy Producer Occidental Petroleum (OXY) shares are slipping 0.5% ahead of the open after agreeing to buy CrownRock. CrownRock is a privately held energy producer that operates in the Permian Basin. Occidental will buy the company for $12 billion and the transaction is expected to close in Q1 2024. The deal will add 170,000 barrels of oil equivalent per day to Occidental’s production and 1,700 undeveloped locations to its operations in the Permian Basin. Macy’s Rallies On Rumored Buyout Offer Macy’s (M) shares are surging 15% in premarket trade following news the company received a $5.8 billion buyout offer. The Wall Street Journal first reported Arkhouse Management and Brigade Capital Management offered to buyout the retailer. The offer values Macy’s at $21 per share. Arkhouse is a firm that primarily targets real estate investment while Brigade Capital is an asset management firm. Sources say the two would be willing to offer a higher bid based on due diligence.
Continue Reading -->Coffee With Greta: Hot Jobs Report
Register now for next week’s free pro trader Q&A on LinkedIn with Scott Redler! DJIA Futures: -12 (-0.03%) SPX Futures: -2 (-0.04%) NASDAQ Futures: -62 (-0.4%) Good morning friends! Futures are falling as yields surge after the release of a hotter-than-expected November jobs report. Let’s get right to it! Jobs Report Comes In Hot The U.S. economy added more jobs than expected in November. The Labor Department reported employers hired 199,000 workers last month vs 190,000 expected. The unemployment rate also fell unexpectedly to 3.7% vs expectations for it to remain unchanged at 3.9%. The healthcare sector saw the largest increase, adding 77,000 jobs. Government added 49,000, leisure and hospitality added 40,000, and manufacturing added 28,000. The retail sector lost 38,000 jobs while transportation and warehousing lost 5,000. Average hourly earnings rose 0.4% monthly and 4% year over year, ahead of expectations for a 0.3% monthly increase. September’s job growth was revised lower by 35,000 to 262,000 while October was left unchanged at 150,000. Yields Pop Treasury yields are rallying this morning after that labor market data. The 10-year yield is up 7 basis points at 4.23% while the 2-year yield is up 8 basis points at 4.66%. The unexpected drop in the unemployment rate shows the labor market maintaining resilience in the face of the Fed’s rate hikes. CME Group’s FedWatch Tool still shows over 98% of traders expect no rate hike at next week’s meeting. But the question of when cuts may begin in 2024 remains up in the air. Lululemon Slips On Muted Forecast Lululemon athletica (LULU) shares are down 2.3% ahead of the open after beating Q3 expectations but issuing muted guidance. Here’s how the athleisure retailer’s results compared to analysts’ estimates: Adjusted EPS: $2.53 vs $2.28 expected Revenue: $2.20 billion vs $2.19 billion expected Sales jumped 19% year over year, up 12% in North America and 49% internationally. But Q4 guidance was light. Lululemon expects EPS between $4.85 and $4.93 on sales of $3.14 billion to $3.17 billion. $9.55 billion to $9.58 billion. Analysts were forecasting EPS of $4.94 on $3.18 billion in revenue. For the full year, the retailer forecast $9.55 billion to $9.58 billion in revenue vs $8.11 billion to $9.90 billion expected. The company’s CFO said, “We’re pleased with the trends we’ve seen at the start of the holiday season. That being said, the majority of the quarter remains in front of us. We remain aware of the uncertainties in the macro environment, and we continue to plan a business for multiple scenarios.”
Continue Reading -->Coffee With Greta: Waiting For The Jobs Report
Register now for next week’s free pro trader Q&A on LinkedIn with Scott Redler! DJIA Futures: -8 (-0.02%) SPX Futures: +10 (+0.2%) NASDAQ Futures: +72 (+0.5%) Good morning friends! Futures are mixed as the rally remains stalled ahead of Friday’s jobs report. Let’s get right to it! Weekly Jobless Claims Rise Weekly jobless claims rose again last week but still came in below expectations. The Labor Department reported 220,000 Americans filed initial claims for unemployment benefits. That was up by 1,000 from the previous week and lower than 222,000 expected. Continuing claims fell by 64,000 to 1.861 million vs 1.91 million expected in the week ending November 25. GameStop Falls After Revenue Miss GameStop (GME) shares are down 8.4% ahead of the open after missing Q3 revenue expectations. Here’s how the videogame retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.00 vs $0.08 loss expected Revenue: $1.078 billion vs $1.182 billion expected GameStop said its net sales in Australia, the U.S., and Canada decreased by 16.8%, 13.3%, and 9.7% respectively. Net sales in Europe jumped 12.8%. GameStop did not provide guidance. Dollar General Jumps On Earnings Beat Dollar General (DG) shares are up 3.5% in premarket trade after beating Q3 expectations on the top and bottom line. Here’s how the discount retailer’s results compared to analysts’ estimates: EPS: $1.26 vs $1.20 expected Revenue: $9.694 billion vs $9.644 billion expected The CEO said, “While we are not satisfied with our financial results for the third quarter, including a significant headwind from inventory shrink, we are pleased with the momentum in some of the underlying sales trends, including positive customer traffic, as well as market share gains in both dollars and units.” Dollar General reiterated its full-year guidance for EPS of $7.10 to $7.60 and a sales increase of 1.5% to 2.5%. Chewy Tumbles On Sales Miss, Weak Guidance Chewy (CHWY) shares are dropping 11.6% ahead of the open after missing Q3 sales expectations. Here’s how the online pet-supplies retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.15 vs $0.06 loss expected Revenue: $2.74 billion vs $2.75 billion expected Revenue rose 8.2% year over year. Chewy’s guidance was also weaker-than-expected which is dragging down the stock. The company said it expects full-year revenue between $8.08 billion and $11.1 billion vs $11.24 billion expected.
Continue Reading -->Coffee With Greta: Weakening Labor Market
Register now for today’s free pro trader Q&A on LinkedIn with Derrick Oldensmith! DJIA Futures: +70 (+0.2%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +86 (+0.5%) Good morning friends! Futures are higher as new data shows labor costs falling. Let’s get right to it! Private Job Growth Slows The U.S. private sector added fewer jobs than expected in November. Payroll firm ADP reported private employers hired 103,000 workers last month vs 128,000 expected. Trade, transportation and utilities added 55,000 jobs, education and health services added 44,000, and other services added 15,000. The leisure and hospitality sector lost 7,000 jobs in November, manufacturing lost 15,000, and construction lost 4,000. October’s private job growth was also revised lower to 106,000. Pay increased 5.6% from a year ago which ADP says was the smallest gain since September 2021. The official November jobs report will be released Friday morning and is expected to show the U.S. economy added 190,000 jobs last month with the unemployment rate unchanged at 3.9%. Q3 Productivity Revised Higher U.S. worker productivity surged in the third quarter. The Bureau of Labor Statistics’ revised Q3 productivity jumped to a 5.2% annual rate from 4.7% originally. That is the fastest pace since Q3 2020 and pre-pandemic is the fastest since Q4 2009. Output was raised to 6.1% from 5.9% while hours worked was revised lower to 0.9% from 1.1%. Unit labor costs dropped 1.2% annually vs the original 0.8% decrease. Productivity has increased 2.4% in 2023, following the 1.2% gain in Q2. That marked the first two consecutive quarters of productivity growth since early 2021. Refinance Demand Jumps Lower mortgage rates led to a surge in refinancing demand last week. The Mortgage Bankers Association reported refinance applications jumped 14% weekly and were up 10% from a year ago. But purchase applications slipped 0.3% weekly and 17% year over year. The average 30-year fixed contract rate fell to 7.17% from 7.37%, the lowest level since August. It was the second consecutive annual increase in refinance demand since late 2021. Rates have continued to move lower this week with Mortgage News Daily showing the average 30-year fixed around 7.08%. Apple Closes Above $3 Trillion Market Cap Apple (AAPL) shares are up 0.3% ahead of the open after closing above a $3 trillion market cap on Tuesday. It was the first time the stock has hit that milestone since August. AAPL shares are up 48% in 2023 and hit an all-time high back in July. The company remains the most valuable publicly traded company in the U.S. In Case You Missed It Job openings dropped to the lowest level in more than 2 years in October. The Labor Department’s job openings and labor turnover survey showed there were 8.73 million available jobs vs 9.4 million expected. That was down by 617,000 or 6.6% from September, and the lowest since March 2021. The ratio of openings to available workers fell to 1.3 to 1. Activity in the U.S. services sector picked up more than expected in November. The ISM services PMI rose nearly one point to 52.7% last month vs 52.4% expected. Readings above 50% indicate expansion in the sector. The new orders index was unchanged at 55.5%, the prices paid index fell slightly to 58.3%, and the employment index improved to 50.7% from 50.2%.
Continue Reading -->Coffee With Greta: Rally Paused
Register now for tomorrow’s free pro trader Q&A on LinkedIn with Derrick Oldensmith! DJIA Futures: -79 (-0.2%) SPX Futures: -13 (-0.3%) NASDAQ Futures: -60 (-0.4%) Good morning friends! Futures are falling as the market rally takes a pause. Let’s get right to it! Waiting For Data The major indexes are extended losses today after falling on Monday. Traders are awaiting important labor market data this week while Fed officials are in a blackout period ahead of their meeting next week. The Labor Department releases the October job openings and labor turnover survey (JOLTS) at 10:00 a.m. ET today. Then payroll firm ADP will release its private employment report for November ahead of the market open tomorrow. The official November jobs report will be released at 8:30 a.m. ET on Friday morning. This data is key for the Fed’s fight against inflation as the central bank has said it needs to see a slowdown in the labor market. GitLab Soars On Earnings Beat GitLab (GTLB) shares are rallying 12.5% ahead of the open after beating Q3 expectations across the board. Here’s how the developer tools software maker’s results compared to analysts’ estimates: Adjusted EPS: $0.09 vs $0.01 loss expected Revenue: $149.7 million vs $141.5 million expected It was the first quarter Gitlab has posted an adjusted profit. Revenue jumped 32% year over year and the company had 874 customers contributing over $100,000 million in annual recurring revenue, up 37% from a year ago. GitLab forecast Q4 adjusted EPS of $0.08 to $0.09 on $157 million to $158 million in revenue. Analysts were forecasting a net loss of $0.01 per share on $150.2 million in revenue. CVS Jumps On Strong Guidance CVS Health (CVS) shares are up 2.1% in premarket trade after issuing better-than-expected revenue guidance for 2024. The pharmacy giant said it expects full-year revenue of at least $366 billion vs analysts’ expectations for $344.5 billion. CVS forecast operating income of at least $15 billion, adjusted operating income of at least $17.2 billion, adjusted EPS of $8.50, and at least $12.5 billion in cash flow from operations. The company also announced the board approved a new quarterly dividend of $0.665, an approximate 10% increase, which will begin in the February quarter. The President and CEO said, “We are successfully executing on our strategy to advance the future of health care while unlocking new value for consumers. The combination of our businesses, and the key growth areas we have invested in, drive our ability to lower the total cost of care, improve health outcomes, and deliver on our commitments to our customers, consumers, and shareholders.” In Case You Missed It U.S. factory orders fell more than expected in October. The Commerce Department reported factory orders fell 3.6% vs expectations for a 3.5% decline. It was only the second decline in the past eight months. Non-defense aircraft orders, mostly Boeing (BA) planes, saw a steep drop. Excluding transportation, factory orders were down just 1.2%.
Continue Reading -->Coffee With Greta: New Week Pullback
Register now for this week’s free pro trader Q&A on LinkedIn with Derrick Oldensmith! DJIA Futures: -132 (-0.4%) SPX Futures: -25 (-0.5%) NASDAQ Futures: -114 (-0.7%) Good morning friends! Futures are slipping after the S&P 500 closed at a fresh 2023 high on Friday. Let’s get right to it! Futures Slip Stocks are starting the new week of trade lower following a five-week win streak for the S&P 500. Gold is also pulling back a bit after surging past $2,100 to a fresh record. Spot gold prices hit a high of $2,110.80 per ounce this morning before giving back some of those gains. Currently, prices are down about 0.5% at $2,080 per ounce. Crypto Stocks Jump Amid Bitcoin Rally Crypto-related stocks are surging this morning as Bitcoin nears $42,000. Bitcoin prices are up 5.6% at just over $41,800.00, marking a 19-month high for the digital currency. Marathon Digital Holdings (MARA) shares are surging 14.2% ahead of the open, Riot Platforms (RIOT) shares are up 12.1%, and Coinbase (COIN) shares are 8.8% higher. Bitcoin is up more than 145% from the start of this year. The rally comes as bitcoin ETFs appear to be making progress. The SEC reportedly met with representatives from Grayscale, BlackRock, and the Nasdaq last week. Grayscale is looking to turn its Grayscale Bitcoin Trust (GBTC) into an ETF while BlackRock is working to launch the first ever spot bitcoin ETF. Spotify Rises After Layoff Announcement Spotify (SPOT) shares are up 6.6% in premarket trade after announcing layoffs this morning. CEO Daniel Ek said the music streaming company will lay off 17% of its workforce in a move to reduce costs and adjust for a slowdown in growth. In an email to staff, Ek said Spotify is taking “substantial action to rightsize our costs.” He said the company hired too many employees in 2020 and 2021. The layoffs will impact roughly 1,500 employees and are in addition to the roughly 800 jobs cut earlier this year. Virgin Galactic Plunges Virgin Galactic (SPCE) shares are tumbling 14.5% ahead of the open after Richard Branson said he will not invest further in the company. In a Financial Times interview on Sunday, Branson said his business empire no longer has “the deepest pockets” and Virgin Galactic should have “sufficient funds to do its job on its own.” The comments come after the company announced job cuts last month and said it will suspend commercial flights for 18 months from the start of 2024. The cost-cutting efforts are part of Virgin Galactic’s plan to develop a larger aircraft aimed at taking passengers to the edge of space. The company estimates its current funding will carry it through 2026 when that aircraft is scheduled to enter service.
Continue Reading -->Coffee With Greta: New Month Begins
Register now for next week’s free pro trader Q&A on LinkedIn with Derrick Oldensmith! DJIA Futures: -14 (-0.04%) SPX Futures: -9 (-0.2%) NASDAQ Futures: -52 (-0.3%) Good morning friends! Futures are falling to kickoff a new month of trade. Let’s get right to it! New Month Begins Stocks are kicking off December lower after ending November at a new 2023 high. The Dow jumped 8.8% last month for its best monthly performance since October 2022. The S&P 500 rallied 8.9% and the Nasdaq jumped 10.7%, the best monthly performances for both indexes since July 2022. The Dow and S&P are both on track to log weekly gains as well for the fifth consecutive week. Focus today is on Fed Chair Jerome Powell as he’s scheduled to speak at an event at 11:00 a.m. ET. The Fed’s next rate decision is on December 13 and over 99% of traders are betting the Central Bank is done hiking rates. Pfizer Discontinues Weight Loss Drug Development Pfizer (PFE) shares are down 4.6% ahead of the open after announcing it will stop developing the twice-daily version of its experimental weight loss pill. The drug maker said patients in the mid-stage clinical trial had trouble tolerating the drug. Pfizer observed high rates of adverse side effects and more than 50% of patients in the study stopped taking the pill. The company said, “At this time, twice-daily danuglipron formulation will not advance into Phase 3 studies.” But Pfizer still plans to release phase two trial data on a once-a-day version of the drug in the first half of 2024. Tesla Falls After Cybertruck Event Tesla (TSLA) shares are down 2.4% in premarket trade as traders digest the details about the Cybertruck. The electric automaker hosted a Cybertruck delivery event in Austin on Thursday where CEO Elon Musk revealed details about the vehicle. Musk said the truck body is bulletproof, its windows are “rock proof”, it can tow over 11,000 pounds, accelerate from 0 to 60 miles per hour in 2.6 seconds, and features a “super-tough” composite bed that is six feet long and four feet wide. He said the truck would “change the look of the roads” and that the “future finally looks like the future.” The base model rear-wheel drive version of the Cybertruck will begin at $60,990 while a “Cyberbeast” version of the truck will start at $99,990. Tesla is also planning to sell an all-wheel drive version of the Cybertruck for $79,900 starting in 2025. The base model has an expected 250-mile range battery, the all-wheel drive model will have a 340 mile range, and the Cyberbeast will have a 320 mile range. In Case You Missed It Pending home sales dropped to a record low in October. The National Association of Realtors’ pending home sales index fell 1.5% to 71.4. That was better than the 2% drop economists were expecting but is the lowest reading since the index was founded in 2001. Pending sales were down 8.5% from October 2022.
Continue Reading -->Coffee With Greta: Inflation Cools, Rally Continues
Register now for next week’s free pro trader Q&A on LinkedIn with Derrick Oldensmith! DJIA Futures: +245 (+0.7%) SPX Futures: +19 (+0.4%) NASDAQ Futures: +59 (+0.4%) Good morning friends! Futures are higher as the rally continues after the release of more cooling inflation data. Let’s get right to it! Fed’s Preferred Inflation Gauge The Fed’s preferred inflation gauge cooled as expected in October. The PCE price index was flat monthly and rose 3% year over year. That was down from the 3.4% annual pace in September. Energy prices dropped 2.6% as food prices rose 0.2%> The core PCE price index rose 0.2% monthly and 3.5% year over year, as expected. That was a slowdown from the 3.7% annual pace in September and the lowest increase since Spring 2021. The report also showed personal spending rose 0.2% and incomes were up 0.2% as well, both in line with expectations. Weekly Jobless Claims Tick Higher Weekly jobless claims rose less than expected last week. The Labor Department reported 218,000 Americans filed initial claims for unemployment benefits. That was up by 7,000 from the week before but lower than expectations for 220,000. Continuing claims rose by 86,000 to 1.927 million in the week ending November 18. That’s the highest number of continuing claims since November 2021. Ford Reinstates Guidance Ford (F) shares are up 1.2% ahead of the open after reinstating its 2023 guidance this morning. The automaker originally pulled its forecast last month due to unknown impacts from the labor strike by the United Auto Workers Union. The new guidance calls for adjusted EBIT of $10 billion to $10.5 billion this year vs $11 billion and $12 billion previously. Ford expects to have a full-year adjusted cash flow of $5 billion to $5.5 billion vs $6.5 billion to $7 billion previously. The company said its new labor agreement with UAW is expected to cost over $8.8 billion over the life of the contract, through April 2028. By 2028, the UAW is expected to add $900 in costs per assembled vehicle. Salesforce Jumps On Earnings Beat Salesforce (CRM) shares are rallying 9% in premarket trade after beating Q3 expectations. Here’s how the software company’s results compared to analysts’ estimates: Adjusted EPS: $2.11 vs $2.06 expected Revenue: $8.72 billion as expected Revenue rose 11% year over year. Salesforce expects revenue to increase 10% in Q4 to between $9.18 billion and $9.23 billion vs $9.21 billion analysts were expecting. The company also said it now sees operating cash flow growth of 33% in 2024 vs 30% previously. In Case You Missed It The Fed’s Beige Book on Tuesday showed both the U.S. economy and inflation slowed in October and November. Six of the 12 regional Fed banks in the survey reported slight declines in economic activity. The report said, “Demand for labor continued to ease, as most districts reported flat to modest increases in overall employment.” Slowing economic growth and labor demand helped ease inflation. The Beige Book said price increases “largely moderated” across the country and “most districts expect moderate price increases to continue into next year.”
Continue Reading -->Coffee With Greta: Rally Resumes
Register now for today’s free trading Q&A on LinkedIn with crypto expert and trader John Divine! DJIA Futures: +109 (+0.3%) SPX Futures: +22 (+0.5%) NASDAQ Futures: +97 (+0.6%) Good morning friends! Futures are up as the November rally resumes. Let’s get right to it! Q3 GDP Revised Higher The U.S. economy expanded at a stronger pace than initially estimated in the third quarter. The Commerce Department’s first revision of Q3 GDP was increased to 5.2% annualized growth vs 4.9% initially reported. Consumer spending was revised lower to 3.6% vs 4% previously. Business investment was revised higher to 2.4% vs 0.8% originally. But the robust growth was short-lived as the economy has cooled in Q4 with businesses hiring less people and consumer spending softening. GDP is on track to expand 1% to 2% annually in the current quarter. General Motors Jumps After Initiating Buyback General Motors (GM) shares are up 9.1% ahead of the open after the company announced plans for a stock buyback and to boost its dividend. The automaker will buy back $10 billion worth of its stock in an accelerated program. That includes the immediate purchase of $6.8 billion worth of common stock. GM also announced it will increase its quarterly dividend by 33% next year to $0.12 per share. The company also reinstated 2023 guidance after reaching a labor agreement with the United Auto Workers Union. Here are the details of that guidance: Net income attributable to stockholders of $9.1 billion to $9.7 billion vs $9.3 billion to $10.7 billion previously Adjusted EBIT of $11.7 billion to $12.7 billion vs $12 billion to $14 billion previously Adjusted EPS of $7.20 to $7.70 including the stock buyback, vs $7.15 to $8.15 previously Adjusted automotive free cash flow of $10.5 billion to $11.5 billion vs $7 billion to $9 billion previously CEO Mary Barra said the automaker is finalizing a 2024 budget that will “fully offset the incremental costs of our new labor agreements. The long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs.” Dollar Tree Slips After Earnings Miss Dollar Tree (DLTR) shares are down 1.8% in premarket trade after missing Q3 expectations and narrowing its full-year guidance. Here’s how the discount retailer’s results compared to analysts’ estimates: EPS: $0.97 vs $1.01 expected Revenue: $7.31 billion vs $7.4 billion expected Same-store sales grew 3.9% year over year vs 5.3% growth expected. Dollar Tree now expects full-year EPS between $5.81 and $6.01 vs $5.78 to $6.08 previously. The retailer forecast full-year revenue of $30.5 billion to $30.7 billion vs $30.6 billion to $30.9 billion previously. The CFO said in a press release, “Our current outlook takes into consideration several factors including continuing strength at the Dollar Tree banner, incremental freight savings, softer demand from low-income households, and a continuation of the shrink and sales mix headwinds we have seen throughout the year.” Foot Locker Rallies On Earnings Beat, Upbeat Outlook Foot Locker (FL) shares are rallying 13.2% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the shoe retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.30 vs $0.21 expected Revenue: $1.99 billion vs $1.96 billion expected Same-store sales fell 8% year over year, better than the 9.7% drop analysts were anticipating. Foot Locker said it now expects full-year revenue to drop by 8% to 8.5% vs the previous forecast for an 8% to 9% drop. The retailer forecast same-store sales will decline 8.5% to 9% vs previous guidance of a 9% to 10% drop. Foot Locker now sees full year adjusted EPS of $1.30 to $1.40 vs $1.30 to $1.50 previously. Mortgage Demand Rises Again Mortgage demand rose again last week as rates continued to fall. The Mortgage Bankers Association reported total application volume was up 0.3% on a weekly basis. Purchase applications rose 5% weekly and were 19% lower year over year. Refinance applications tumbled 9% weekly and were 1% higher than a year ago. The average 30-year fixed contract rate decreased to 7.37% from 7.41%, the fourth decrease in the past five weeks. In Case You Missed It Home prices continued to climb in September even as mortgage rates surged. S&P Case-Shiller’s national home price index jumped 3.9% from September 2022, up from the 2.5% annual gain in August. Detroit saw the largest gain with prices up 6.7% annually, prices rose 6.5% year over year in San Diego, and jumped 6.3% in New York. Year-to-date home prices are up 6.1%. Consumer confidence rebounded unexpectedly this month. The Conference Board’s consumer confidence index rose nearly 3 points to 102 from 99.1 in October. That was better than expectations for 101. Confidence in current economic conditions fell to 138.2 from 138.6 while the six-month expectations index rose to 77.8 from 72.7. Although that was an improvement, the expectations index remains below the key 80 mark that is known to signal a recession is ahead.
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