Coffee With Greta: Hawkish Powell
DJIA Futures: +125 (+0.4%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +47 (+0.3%) Good morning friends! Futures are higher as Treasury yields pull back and traders shake-off hawkish comments from the Fed Chair. Let’s get right to it! Powell Recap Federal Reserve Chairman Jerome Powell sounded more hawkish than expected at an IMF panel on Thursday. During his speech Powell said, “The Federal Open Market Committee is committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have achieved such a stance.” But he also did not commit to any future moves saying, “If it becomes appropriate to tighten policy further, we will not hesitate to do so. We will continue to move carefully, however, allowing us to address both the risk of being misled by a few good months of data, and the risk of overtightening.” The Fed previously outlined plans for one more rate hike before the end of the year, but after the surge in Treasury yields the market believes that won’t happen. CME Group’s FedWatch Tool shows 90.7% of traders anticipating no rate hike at the December 13 meeting. Yields Cool Treasury yields are down this morning after spiking on Thursday. The 10-year yield is down 6 basis points at 4.56% with the 2-year yield down 5 basis points at 4.99%. Yields jumped on Thursday after demand for the 30-year bond auction was at the lowest level in two years. The 10-year yield spiked as much as 13 basis points. The Fed chair’s hawkish comments also fueled that spike as investors try to assess the future of monetary policy. Unity Software Slides On Revenue Miss Unity Software (U) shares are dropping 12.6% ahead of the open after missing Q3 revenue expectations and not providing guidance. Here’s how the video game engine’s results compared to analysts’ estimates: Loss per share: $0.32 vs $0.49 expected Revenue: $544.2 million vs $554 million expected Revenue was up 69% year over year, mainly thanks to Unity’s $2.9 billion acquisition of mobile advertising company ironSource. Unity’s Create Solutions segment, which includes game-development tools, reported $189 million in revenue vs $204.7 million expected. The Grow Solutions segment, which includes game publishing and advertising, reported $355.3 million in revenue, up nearly 166% from a year ago and higher than $345.3 million expected. In a letter to shareholders Unity said, “Our results in the third quarter were mixed. While revenue came in within guidance, we believe we can do better.” The company declined to provide guidance, citing uncertainty around when it plans to introduce new fees and a new strategy that might include layoffs and other cost-cutting measures. In Case You Missed It Tesla (TSLA) shares tumbled 5.5% on Thursday after HSBC Global analysts initiated coverage on the stock with a “reduce” rating and a $146 price target. The stock closed at $209.98 per share. HSBC analysts called CEO Elon Musk both an asset and a risk to the company. They said he is a “charismatic CEO with a cult-like following” who “feeds into the innovator narrative. But they also said, “Significant delays or developments that show lack of technological and/or regulatory feasibility for a commercial launch of these projects pose a significant risk for Tesla.”
Continue Reading -->Coffee With Greta: Extending Gains
DJIA Futures: +79 (+0.2%) SPX Futures: +9 (+0.2%) NASDAQ Futures: +4 (+0.02%) Good morning friends! Futures are rising as the S&P 500 extends its longest win streak since 2021. Let’s get right to it! Disney Jumps On Earnings Beat Walt Disney (DIS) shares are up 4.3% ahead of the open after beating fiscal Q4 profit expectations and announcing plans to expand its cost-cutting efforts. Here’s how the company’s results compared to analysts’ estimates: Adjusted EPS: $0.82 vs $0.70 expected Revenue: $21.24 billion vs $21.33 billion expected Disney+ subscribers: 150.2 million vs 148.15 million expected Revenue rose 5% year over year but marked the second straight miss for the first time since early 2018. Disney’s experience division, which includes the theme parks, saw revenue jump 13% to $8.16 billion. The company said it plans to continue to “aggressively manage” its cost base, increasing those efforts by $2 billion to a target of $7.5 billion. Arm Falls After First Post-IPO Earnings Arm Holdings (ARM) shares are falling 6.3% in premarket trade despite beating expectations in its first post-IPO earnings report. Here’s how the chip designer’s results compared to analysts’ estimates: Adjusted EPS: $0.36 vs $0.26 expected Revenue: $806 million vs $740 million expected Total revenue rose 28% year over year. In a letter to investors, company management said, “We are delighted with Arm’s first quarter as a listed company, which has demonstrated the strength of our business model and the robustness of our diversified products and end markets.” But Arm’s guidance for the current quarter fell short. The company expects EPS between $0.21 and $0.28 on revenue between $720 million and $880 million. Analysts were forecasting EPS of $0.27 on between $730 million and $805 million in revenue. Lyft Slips Despite Earnings Beat Lyft (LYFT) shares are down 4.1% ahead of the open despite beating Q3 expectations. Here’s how the ride-hailing giant’s results compared to analysts’ estimates: Adjusted EPS: $0.24 vs $0.15 expected Revenue: $1.16 billion vs $1.14 billion expected Revenue jumped 10% year over year while total rides rose 20% to 187 million. Lyft’s active riders grew 10% from a year ago to 22.4 million. The company forecast Q4 sales growth in the “mid-single-digits quarter over quarter” vs 3.5% expected. Lyft said it expects gross bookings in the current quarter of around $3.6 billion to $3.7 billion. Weekly Jobless Claims Fall Weekly jobless claims fell more than expected as the labor market remains tight. The Labor Department reported 217,000 Americans filed initial claims for unemployment benefits last week. That was a decrease of 3,000 from the week before and lower than 220,000 expected. Continuing claims rose by 22,000 to 1.83 million the week ending October 28, the highest level in seven months. This figure indicates it’s taking unemployed workers longer to find new jobs.
Continue Reading -->Coffee With Greta: Win Streak
Register now for today’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +28 (+0.1%) SPX Futures: +2 (+0.1%) NASDAQ Futures: -5 (-0.03%) Good morning friends! Futures are mostly higher as the S&P 500 extends its longest winning streak since 2021. Let’s get right to it! Rivian Pops On Higher Production Forecast Rivian (RIVN) shares are up 7% ahead of the open after beating Q3 expectations and hiking its full-year production forecast. Here’s how the electric automaker’s results compared to analysts’ estimates: Adjusted loss per share: $1.19 vs $1.34 expected Revenue: $1.34 billion vs $1.32 billion expected The company delivered 15,564 vehicles during the quarter. Rivian also ended its exclusivity deal with Amazon (AMZN) for its electric delivery vans. The CEO said it the company in “active discussions with a number of large potential fleet customers to launch pilot programs” with the vans. In a letter to shareholders, executives said, “We remain focused on ramping production and implementing core technologies designed to reduce cost and improve the customer offering.” Rivian now expects to produce 54,000 vehicles this year, up from 52,000 previously. Lucid Tumbles After Cutting Production Guidance Lucid (LCID) shares are dropping 6.7% in premarket trade after missing Q3 sales expectations and cutting its full-year production guidance. Here’s how the electric automaker’s results compared to analysts’ estimates: Loss per share: $0.28 vs $0.40 expected Revenue: $138 million vs $178 million expected Lucid produced about 1,550 units in Q3, bringing the 2023 total to about 6,000 so far. The company lowered its full-year production guidance to between 8,000 and 8,500 vehicles this year, down from about 10,000 previously. Even with the lower guidance, that still leaves 2,000 to 2,500 vehicles to produce in Q4. Robinhood Slips On Q3 Revenue Miss Robinhood (HOOD) shares are down 7.3% ahead of the open after missing Q3 revenue expectations. Here’s how the trading platform’s results compared to analysts’ estimates: Loss per share: $0.09 vs $0.10 expected Revenue: $467 million vs $480 million expected Revenue rose 29% year over year due to higher net interest and other revenue. But transaction revenue dropped 11% to $185 million, with equities transaction revenue down 13% and crypto revenue tumbling 55%. Robinhood’s monthly active users fell 16% from a year ago to 10.3 million vs 10.7 million expected. Warner Bros Drops On Q3 Loss Warner Bros. Discovery (WBD) shares are dropping 9.7% in premarket trade after reporting a wider-than-expected loss in Q3. Here’s how the media conglomerate’s results compared to analysts’ estimates: Loss per share: $0.17 vs $0.09 expected Revenue: $9.98 billion vs $9.97 billion expected Content revenue for WBD’s networks segment dropped 22% from a year ago to $215 million. The company said, “TV revenue declined significantly primarily due to certain large licensing deals in the prior year and the impact of the WGA and SAG-AFTRA strikes.” Total advertising revenue also fell 12% year over year to $1.8 billion. Mortgage Demand Jumps As Rates Drop Mortgage demand jumped last week as rates logged the biggest one-week drop in over a year. The Mortgage Bankers Association reported total application volume rose 2.5% last week, marking the first increase in a month. Purchase applications rose 3% weekly but were still 20% lower year over year. Refinance applications rose 2% weekly and were down 7% annually. The increase in activity came as the average 30-year fixed contract rate fell to 7.61% from 7.86%. In Case You Missed It Microsoft (MSFT) shares closed at a new all-time high on Tuesday amid optimism surrounding OpenAI. The stock ended the session at $360.53 per share, up 1.12%. It was Microsoft’s 8th straight daily gain, the longest streak since 2021. The company’s strategic AI partner, OpenAI, announced a slew of updates on Monday which propelled MSFT shares higher.
Continue Reading -->Coffee With Greta: Rally Fizzles
Register now for tomorrow’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: -68 (-0.2%) SPX Futures: -7 (-0.2%) NASDAQ Futures: +6 (+0.04%) Good morning friends! Futures are mostly lower as stocks take a breather from the recent rally. Let’s get right to it! Yields Fall, Futures Slip Both Treasury yields and stock futures are down this morning. The 10-year yield is down 2 basis points at 4.63% as investors await Fed speakers this week. Focus is on the Fed Chair’s opening remarks on Wednesday and speech at the IMF panel on Thursday. The Fed’s Vice Chair for Supervision, Michael Barr, is scheduled to speak this morning with Fed Governor Christopher Waller giving a speech at 10:00 a.m. ET. Economic data this week is light, giving traders very little clues on the state of the economy after the softer-than-expected jobs report on Friday. Uber Slips On Earnings Miss Uber Technologies (UBER) shares are down 1.2% ahead of the open after missing Q3 expectations on the top and bottom line. Here’s how the ride-hailing giant’s results compared to analysts’ estimates: EPS: $0.10 vs $0.12 expected Revenue: $9.29 billion vs $9.52 billion expected Revenue rose 11% year over year. Despite the miss, the CEO said Q3 was “very strong” and he saw accelerations in gross bookings, trips, and monthly active platform consumers. He said, “These results demonstrate that Uber continues to drive profitable growth at scale—and why we believe we’re well positioned for the journey ahead, in good or bad macro environments.” Uber had $17.90 billion in mobility gross bookings last quarter, up 31% from a year ago. The company logged $16.09 billion in delivery gross bookings, up 18% year over year. Uber forecast Q4 gross booking between $36.5 billion and $37.5 billion vs $36.5 billion expected. The company expects adjusted EBITDA of $1.18 billion to $1.24 billion in the current quarter. Trade Deficit Climbs The U.S. trade deficit rose more than expected in September as imports rebounded. The Bureau of Economic Analysis reported the deficit jumped 4.9% to $61.5 billion vs $59.8 billion expected. Exports rose 2.2% to $261.1 billion while imports rose 2.7% to $322.7 billion. The goods deficit rose by $1.7 billion to $86.3 billion while the services surplus decreased by $1.2 billion to $24.8 billion. But the total 2023 gap is still on track to be the smallest increase since 2020.
Continue Reading -->Coffee With Greta: Rally Extends
Register now for this week’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +14 (+0.04%) SPX Futures: +7 (+0.2%) NASDAQ Futures: +28 (+0.2%) Good morning friends! Futures are higher as the rally continues after the S&P 500’s best week of the year. Let’s get right to it! Quieter Week This will be a much quieter week for traders after last week’s marathon of the Fed decision, Apple (AAPL) earnings, and the jobs report. Several Fed officials are scheduled to speak throughout the week including two speeches from Chairman Jerome Powell on Wednesday and Thursday. Economic data for the week includes the September trade deficit on Tuesday, September wholesale inventories on Wednesday, weekly jobless claims on Thursday, and consumer sentiment on Friday. Earnings Slow The earnings calendar is also a bit lighter this week. Here are some of the highlights: Tuesday AM: Uber Technologies (UBER) Tuesday PM: Rivian (RIVN), Lucid (LCID), Robinhood (HOOD) Wednesday AM: Warner Bros Discovery (WBD), Roblox (RBLX) Wednesday PM: Walt Disney (DIS) Treasury Yields Turn Higher Treasury yields are on the rise this morning as investors assess the future of interest rates after last week’s Fed decision. The 10-year yield is up 10 basis points at 4.62% with the 2-year yield up 3 basis points at 4.90%. Friday’s cooler-than-expected jobs report raised hopes that the Fed is done hiking rates. Cooling down the labor market has been a key point for the central bank in its fight against inflation. CME Group’s FedWatch Tool currently shows over 90% of traders expecting no rate hike at the December meeting.
Continue Reading -->Coffee With Greta: Soft Jobs Report Boosts Stocks
Register now for next week’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +149 (+0.4%) SPX Futures: +21 (+0.5%) NASDAQ Futures: +59 (+0.4%) Good morning friends! Futures are rising with yields tumbling after a weaker-than-expected October jobs report. Let’s get right to it! Soft Jobs Report The U.S. economy added fewer jobs than expected in October, which is good news for the Fed’s fight against inflation. The Labor Department reported nonfarm payrolls increased by 150,000 last month vs 170,000 expected. The unemployment rate rose unexpectedly to 3.9% vs expectations for it to hold steady at 3.8%. Average hourly earnings rose 0.2% monthly and 4.1% annually vs 0.3% monthly and 4% annually expected. The previous two months were also revised lower. September’s job gains were revised down by 39,000 to +297,000 with August revised down by 62,000 to +165,000. Apple Falls On Weak Outlook Apple (AAPL) shares are down 1.6% ahead of the open as a weak outlook overshadows the company’s fiscal Q4 earnings beat. Here’s how the iPhone maker’s results compared to analysts’ estimates: EPS: $1.46 vs $1.39 expected Revenue: $89.5 billion vs $89.28 billion expected iPhone revenue: $43.81 billion, as expected Mac revenue: $7.61 billion vs $8.63 billion expected iPad revenue: $6.44 billion vs $6.07 billion expected Wearables revenue: $9.32 billion vs $9.43 billion expected Services revenue: $22.31 billion vs $21.35 billion expected Gross margin: 45.2% vs 44.5% expected For the full year, Apple reported $383.29 billion in sales, down 3% year over year. But services revenue helped boost underperformance in other segments, jumping more than 15% from a year ago. While Apple did not give formal guidance, the CFO said the company expects current quarter revenue to “be similar to” last year. Analysts were expecting $122.98 billion in fiscal Q1 revenue, which would be growth of about 5%. Block Surges On Strong Guidance Block (SQ) shares are rallying 17.3% in premarket trade after beating Q3 expectations and issuing strong guidance. Here’s how the fintech company’s results compared to analysts’ estimates: Adjusted EPS: $0.55 vs $0.47 expected Revenue: $5.6 billion vs $5.4 billion expected Revenue jumped 24.4% year over year with gross profit up 21%. Block forecast Q4 gross profit of $1.96 billion to $1.98 billion vs $1.98 billion expected. The company expects adjusted ebitda of $430 million to $450 million, better than estimates. For the 2024 fiscal year, Block expects adjusted ebitda of $2.4 billion, well above $1.94 billion expected. In a letter to shareholders, the company said it believes it can achieve gross profit growth in the midteens and a mid-20% adjusted operating income margin in 2026. Block also announced a $1 billion share buyback plan. Coinbase Drops On Lower Trading Volume Coinbase (COIN) shares are down 2.5% ahead of the open after reporting a slump Q3 trading volume. Here’s how the crypto exchange’s results compared to analysts’ estimates: Loss per share: $0.01 vs $0.55 expected Revenue: $674 million vs $651 million expected Although smaller than expected it marked Coinbase’s seventh straight quarterly loss. The company said it had $76 billion in total trading volume last quarter, down from $92 billion in Q2, and $159 billion a year ago. But as the price of Bitcoin has risen since the end of Q3, Coinbase has seen a rise in volume.
Continue Reading -->Coffee With Greta: Earnings Rush
Register now for next week’s free trading Q&A on LinkedIn with options specialist Dan Darrow! DJIA Futures: +218 (+0.7%) SPX Futures: +39 (+0.9%) NASDAQ Futures: +197 (+1.3%) Good morning friends! Futures are up and yields are falling as traders bet the Fed is done hiking rates and digest a rush of earnings reports ahead of Apple this afternoon. Let’s get right to it! Starbucks Rallies On Earnings Beat Starbucks (SBUX) shares are rallying 10% ahead of the open after beating fiscal Q4 expectations on the top and bottom line. Here’s how the coffee giant’s results compared to analysts’ estimates: EPS: $1.06 vs $0.97 expected Revenue: $9.37 billion vs $9.29 billion expected Net sales climbed 11.4% year over year. Starbucks’ same-store sales rose 8% from a year ago vs 6.8% expected, due to higher average checks and a 3% increase in customer traffic. The average check in the U.S. rose 6% year over year. Starbucks forecast same-store sales growth of 5% to 7% in fiscal 2024, 10% to 12% revenue growth, and EPS growth of 15% to 20%. Peloton Sinks On Fiscal Q1 Miss Peloton (PTON) shares are sinking 6.2% in premarket trade after reporting a wider-than-expected loss for its fiscal first quarter. Here’s how the fitness company’s results compared to analysts’ estimates: Loss per share: $0.44 vs $0.34 expected Revenue: $595.5 million vs $591 million expected Connected fitness subscriptions: 2.96 million vs 2.99 million expected Subscription revenue of $415 million far outpaced hardware sales revenue of $180.6 million. Peloton forecast fiscal Q2 revenue between $715 million and $750 million, down 8% at the midpoint from a year ago and lower than $763.2 million expected. The company expects between 2.97 million and 2.98 million paid subscriptions during the current quarter, lower than 3.03 million expected. Shopify Skyrockets On Strong Earnings Shopify (SHOP) shares are surging 16.6% ahead of the open after topping Q3 expectations on the top and bottom line. Here’s how the e-commerce platform’s results compared to analysts’ estimates: Adjusted EPS: $0.24 vs $0.15 expected Revenue: $1.7 billion vs $1.67 billion expected Gross merchandise volume jumped 22% year over year to $56.2 billion vs $54.3 billion expected. Shopify forecast Q4 revenue growth in the high-teens percentage rate and full-year revenue growth in the mid 20% range Qualcomm Jumps After Solid Earnings, Strong Forecast Qualcomm (QCOM) shares are up 6.7% in premarket trade after beating fiscal Q4 expectations on the top and bottom line. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $2.02 vs $1.91 expected Adjusted Revenue: $8.67 billion vs $8.51 billion expected Net income dropped 48% year over year with adjusted revenue down 19%. Qualcomm forecast fiscal Q1 EPS between $2.25 and $2.45 on revenue between $9.1 billion and $9.9 billion. That topped analysts’ estimates for EPS of $2.23 on $9.2 billion in revenue. Roku Surges On Revenue Beat Roku (ROKU) shares are rallying 19.7% ahead of the open after reporting mixed Q3 results and a larger-than-expected increase in active accounts. Here’s how the streaming giant’s results compared to analysts’ estimates: Loss per share: $2.33 vs $2.04 expected Revenue: $912 million vs $857 million expected Active accounts: 75.8 million vs 75.3 million expected Revenue jumped nearly 20% year over year and active accounts were up by 2.3 million from the second quarter. Roku forecast Q4 revenue of about $955 million, better than expected. The company also projected $10 million in adjusted ebitda for the current quarter. Weekly Jobless Claims Hit 7-Week High Weekly jobless claims rose to the highest level in seven weeks. The Labor Department reported 217,000 Americans filed initial claims for unemployment benefits last week. That was up by 5,000 from the previous week and higher than 210,000 expected. Continuing claims rose by 35,000 to 1.818 million vs 1.800 million expected in the week ending October 21. This marks the sixth straight week continuing claims have increased. In Case You Missed It The Federal Reserve held interest rates steady in a range of 5.25% to 5.5% on Wednesday. The FOMC statement added language about tighter “financial conditions” impacting economic conditions, after the recent surge in Treasury yields. Chairman Powell said the committee is undecided on whether another rate hike will be needed in December and said they will remain “data dependent.”
Continue Reading -->Coffee With Greta: Fed Decision Looms
Register now for today’s free pro trader Q&A on LinkedIn with Scott Redler after the Fed decision! DJIA Futures: -28 (-0.1%) SPX Futures: +2 (+0.04%) NASDAQ Futures: +8 (+0.1%) Good morning friends! Futures are flat as traders await this afternoon’s Fed decision. Let’s get right to it! Private Job Growth Weaker Than Expected The U.S. private sector added fewer jobs than expected in October. Payroll firm ADP reported private employers added 113,000 jobs last month vs 130,000 expected. That was still an increase from 89,000 in September. Wages rose 5.7% from a year ago, the smallest annual gain since October 2021. Education and health services added the most jobs with 45,000 new workers. Trade, transportation and utilities added 35,000, financial activities added 21,000, and leisure and hospitality added 17,000. Nearly all of the added jobs were in service-providing industries with goods producers adding just 6,000. This report comes ahead of the official Labor Department jobs report on Friday. That’s expected to show the economy added 170,000 jobs in October with the unemployment rate unchanged at 3.8%. AMD Slips On Soft Q4 Guidance Advanced Micro Devices (AMD) shares are down 0.4% ahead of the open after beating Q3 expectations but issuing a weak forecast. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $0.70 vs $0.68 expected Revenue: $5.8 billion vs $5.7 billion expected Revenue was up 4% year over year. The data center group reported $1.6 billion in sales, flat from a year ago. AMD’s Client group reported $1.5 billion in sales, up 42% year over year. Sales in the gaming segment fell 8% from a year ago to $1.5 billion, due to fewer “semi-custom” chip sales. AMD said it expects about $6.1 billion in Q4 sales vs $6.37 billion expected. CVS Drops After Slashing Outlook CVS Health (CVS) shares are dropping 4.6% in premarket trade after beating Q3 expectations but cutting its outlook. Here’s how the healthcare company’s results compared to analysts’ estimates: EPS: $2.21 vs $2.13 expected Revenue: $89.8 billion vs $88.3 billion expected But the company cut its full-year outlook for the third consecutive quarter. CVS now expects full-year earnings to be between $6.37 and $6.61, down from its original forecast of $7.73 to $7.93. The CEO said, “Despite a challenging business environment, we continue adapting to the changing needs of our consumers by connecting our care delivery capabilities in communities across the country, broadening access to care and lowering costs.” Adjustable-Rate Mortgage Demand Jumps Total mortgage demand continued to fall last week but buyers are increasingly turning to adjustable-rate mortgages. The Mortgage Bankers Association reported purchase applications fell 1% weekly and 22% year over year. Refinance applications dropped 4% weekly and 12% annually. But adjustable-rate applications jumped nearly 10% from the week before. ARMs made up 10.7% of all applications last week, the largest share in nearly a year. The average 30-year fixed contract rate decreased to 7.86% from 7.90% last week while the average 5/1 ARM rate decreased to 6.77%. In Case You Missed It U.S. home prices rose for the sixth month in a row in August. The S&P CoreLogic Case-Shiller 20-city house price index increased 1% from July vs 0.8% expected. The index was up 2.2% year over year. The national index also rose 0.9% monthly and 2.6% annually. Consumer confidence dropped to a five-month low in October. The Conference Board’s consumer confidence index fell to 102.6 from 104.3 in September. That was better than economists’ expectations for the index to fall to 100. Confidence in current economic conditions fell to 143.1 from 146.2. The six-month expectations index fell to 75.6 from 76.4, remaining below the 80 mark that is believed to signal a recession.
Continue Reading -->Coffee With Greta: End Of October
Register now for tomorrow’s free pro trader Q&A on LinkedIn with Scott Redler on Fed Day! DJIA Futures: +22 (0.1%) SPX Futures: +7 (+0.2%) NASDAQ Futures: +9 (+0.1%) Good morning friends! Futures are rising on the final day of what will be the third straight losing month for the S&P 500. Let’s get right to it! Month-End Yields are slipping and stocks are rising as traders gear up for the final day of October and look ahead to the Fed decision. The 10-year yield is down 6 basis points at 4.83% with the 2-year yield down 3 basis points at 5.03%. The Central Bank’s two-day policy meeting kicks off today with the rate decision released at 2:00 p.m. ET on Wednesday. CME Group’s FedWatch Tool shows over 98% of traders expecting the Fed to leave rates unchanged. Several officials have said in recent weeks they do not see the need for rates to move any higher thanks to the recent surge in Treasury yields. Pinterest Rallies On Q3 Earnings Beat Pinterest (PINS) shares are rallying 15.5% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the social media company’s results compared to analysts’ estimates: Adjusted EPS: $0.28 vs $0.20 expected Revenue: $763.2 million vs $743.5 million expected Revenue jumped 11% year over year. Pinterest reported 482 million global monthly active users, up 8% from a year ago and higher than 473 million expected. Average revenue per user also beat at $1.61 vs analysts’ estimates of $1.59. The company forecast Q4 revenue growth of 11% to 13% vs 11.3% expected by analysts. Pfizer Drops After Revenue Miss Pfizer (PFE) shares are falling 1.2% in premarket trade after reporting mixed Q3 results. Here’s how the pharmaceutical giant’s results compared to analysts’ estimates: Adjusted loss per share: $0.17 vs $0.34 expected Revenue: $13.23 billion vs $13.34 billion expected Revenue plunged 42% year over year as Covid product sales plummeted. Pfizer’s Covid vaccine brought in just $1.31 billion in sales, down 70% from a year ago and lower than $1.53 billion expected. The Covid antiviral treatment Paxlovid posted $202 million in sales, down 97% and lower than $613.5 million expected. The company recorded a $5.6 billion charge for inventory write-offs during the quarter due to the lower-than-expected use of Covid products. Pfizer reiterated its lower full-year guidance from a few weeks ago. The company expected sales of $58 billion to $61 billion this year and adjusted EPS of $1.45 to $1.65. Caterpillar Drops On Weak Outlook Caterpillar (CAT) shares are down 4.9% ahead of the open despite beating Q3 expectations as the market focused on weak guidance. Here’s how the heavy equipment maker’s results compared to analysts’ estimates: EPS: $5.52 vs $4.80 expected Revenue: $16.8 billion vs $16.6 billion expected Revenue jumped from $15 billion a year ago, thanks to higher prices. Pricing added about $1.3 billion to sales in Q3 while volumes added about $350 million. But Caterpillar said it only expects Q4 revenue to be “slightly” higher year-over-year, indicating it could miss expectations. JetBlue Tumbles After Earnings JetBlue Airways (JBLU) shares are tumbling 9.8% in premarket trade after missing Q3 expectations and cutting its full-year guidance. Here’s how the airline’s results compared to analysts’ estimates: Adjusted loss per share: $0.39 vs $0.25 expected Revenue: $2.35 billion vs $2.38 billion expected For Q4, JetBlue now sees a loss per share of $0.35 to $0.55 vs $0.15 expected. The company also expects a full-year loss per share of $0.45 to $0.65 vs $0.05 to $0.40 previously. Analysts were estimating a full-year loss of just $0.25 per share.
Continue Reading -->Coffee With Greta: Big Week Kicks Off
Register now for this week’s free pro trader Q&A on LinkedIn with Scott Redler on Fed Day! DJIA Futures: +171 (+0.5%) SPX Futures: +22 (+0.5%) NASDAQ Futures: +92 (+0.6%) Good morning friends! Futures are rising as traders kick off a big week. Let’s get right to it! Important Week This will be a big week of data for the market, focused on the Fed and the labor market. Wednesday morning traders will get ADP’s private employment report for October at 8:15 a.m. ET and then the Labor Department’s JOLTS at 10:00 a.m. The Fed decision will then be released at 2:00 p.m. ET, followed by the Fed Chair’s press conference at 2:30. Friday is the official October jobs report from the Labor Department. There’s been increased focus on the labor market as inflation slowly comes down amid the Fed’s rate hikes. The Central Bank has said it needs to see weakening in the jobs market that it has not yet seen. Earnings Look Ahead On top of the important data this week, traders are still set to get some key earnings reports. Here’s the highlights: Tuesday AM: Pfizer (PFE), Caterpillar (CAT) Tuesday PM: Advanced Micro Devices (AMD) Wednesday AM: CVS Health (CVS) Wednesday PM: Qualcomm (QCOM), Airbnb (ABNB), PayPal (PYPL), DoorDash (DASH), Roku (ROKU) Thursday AM: Starbucks (SBUX), Shopify (SHOP), Moderna (MRNA) Thursday PM: Apple (AAPL), Block (SQ), Coinbase (COIN) McDonald’s Jumps On Earnings Beat McDonald’s (MCD) shares are up 2.6% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the fast food giant’s results compared to analysts’ estimates: Adjusted EPS: $3.19 vs $3 expected Revenue: $6.69 billion vs $6.58 billion expected Revenue jumped 14% year over year. Global same-store sales rose 8.8% vs 7.8% expected. Same-store sales in the U.S. jumped 8.1%, fueled by price hikes. SoFi Rallies On Huge Revenue Beat SoFi Technologies (SOFI) shares are soaring 10.6% in premarket trade after sharply beating Q3 expectations. Here’s how the personal finance company’s results compared to analysts’ estimates: Adjusted loss per share: $0.03 vs $0.08 expected Revenue: $530.72 million vs $511 million expected The beat was largely due to a rush of student loan originations as borrowers prepared for payments to resume. SoFi originated $919.3 million worth of student loans in Q3, soaring past expectations for $651.5 million. Personal and home loan originations also beat at $3.89 billion vs $355.7 million expected. The company also lifted its full-year guidance. SoFi now expected adjusted net revenue of $2.045 billion to $2.065 billion this year vs $1.974 billion to $2.034 billion previously. The company forecast full-year adjusted Ebitda of $386 million to $396 million vs $333 million to $343 million previously.
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