Coffee With Greta: Big Bank Earnings
Register now for next week’s free trading Q&A on LinkedIn with David Prince! DJIA Futures: +86 (+0.3%) SPX Futures: +8 (+0.2%) NASDAQ Futures: -10 (-0.1%) Good morning friends! Futures are mixed as Q3 earnings season kicks off with the big banks. Let’s get right to it! Chase Rises After Q3 Results JPMorgan Chase (JPM) shares are up 0.8% ahead of the open after reporting higher profits in the third quarter. Here’s how the largest U.S. bank’s results compared to analysts’ estimates: EPS: $4.33 vs $3.92 expected Revenue: $40.69 billion vs $39.63 billion expected Profits surged 35% year over year while revenue climbed 21%. Net interest income jumped 30%, topping expectations by about $600 million. Chase CEO Jamie Dimon said U.S. consumers and businesses “generally remain healthy, although consumers are spending down their excess cash buffers.” Dimon warned that plus tight labor markets and “extremely high government debt levels” may push interest rates even higher. Citigroup Tops Q3 Estimates Citigroup (C) shares are rising 2.6% in premarket trade after beating Q3 expectations on the top and bottom line. Here’s how the investment bank’s results compared to analysts’ estimates: EPS: $1.63 vs $1.23 expected Revenue: $20.1 billion vs $19.3 billion expected Revenue was up 9% year over year and profits rose 2%. Citigroup’s institutional clients reported $10.6 billion in revenue, up 12% from a year ago and 2% from Q2. Personal banking and wealth management revenue jumped 10% year over year and 6% from Q2 to $6.8 billion. Wells Fargo Rises On Earnings Beat Wells Fargo (WFC) shares are up 2.9% ahead of the open after beating Q3 expectations on the top and bottom line. Here’s how the consumer bank’s results compared to analysts’ estimates: EPS: $1.48 vs $1.24 expected Revenue: $20.9 billion vs $20.1 billion expected Higher interest rates boosted net interest income, which jumped 8% year over year during the quarter. That helped offset slower lending activity at the bank. Wells Fargo’s CEO said, “Our revenue growth from a year ago included both higher net interest income and noninterest income as we benefited from higher rates and the investments we are making in our businesses.” He added, “While the economy has continued to be resilient, we are seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly.” UnitedHealth Jumps After Earnings Beat UnitedHealth Group (UNH) shares are rising 1.5% in premarket trade after topping Q3 expectations. Here’s how the health insurer’s results compared to analysts’ estimates: Adjusted EPS: $6.56 vs $6.32 expected Revenue: $92.4 billion vs $91.4 billion expected Revenue jumped 14% year over year. UnitedHealth’s medical loss ratio was also better than expected at 82.3% vs the 82.8% consensus estimate. The company raised its full-year outlook, now expecting EPS between $24.85 and $25. Microsoft Closes Activision Blizzard Acquisition Microsoft (MSFT) shares are slipping 0.1% ahead of the open after closing its acquisition of Activision Blizzard. Activision Blizzard announced the deal had closed in a regulatory filing this morning. The deal expands Microsoft’s portfolio of video game franchises. Microsoft faced intense regulatory pushback on the acquisition after announcing it in January 2022. It was originally expected to close in June 2023 before the companies pushed the deadline to October 18.
Continue Reading -->Coffee With Greta: Market Shakes Off Hot CPI
Register now for next week’s free trading Q&A on LinkedIn with David Prince! DJIA Futures: +100 (+0.3%) SPX Futures: +10 (+0.2%) NASDAQ Futures: +21 (+0.1%) Good morning friends! Futures are higher after the release of the September CPI. Let’s get right to it! Rising Shelter Costs Drive Hot CPI Headline inflation pressures rose slightly more than expected in September. The Bureau of Labor Statistics’ consumer price index rose 0.4% monthly and 3.7% year over year vs 0.3% monthly and 3.6% annually expected. That was driven mostly by higher shelter costs which jumped 0.6% monthly and 7.2% annually. Gas prices continued to rise as well, up 2.1% monthly and 3% from a year ago. The core CPI, which excludes food and energy prices, rose 0.3% monthly and 4.1% annually, in line with expectations. That was the lowest core reading since September 2021. Jobless Claims Flat Weekly jobless claims were unchanged last week. The Labor Department reported 209,000 Americans filed initial claims for unemployment benefits, lower than expectations for claims to rise by 3,000 to 210,000. The previous week was revised higher by 2,000 to 209,000. This is the fourth straight week claims have been under 210,000. Continuing claims rose by 30,000 to 1.702 million vs 1.676 million expected in the week ending September 30. Delta Jumps On Strong Summer Quarter Delta Airlines (DAL) shares are up 2.7% ahead of the open after beating Q3 profit expectations. Here’s how the airline’s results compared to analysts’ estimates: Adjusted EPS: $2.03 vs $1.95 expected Revenue: $14.55 billion vs $14.56 billion expected Revenue was up 13% year over year while profit surged 59%. Delta’s flights were 88% full during the quarter, up 1% from a year ago. But unit revenue fell 1.5% due to lower airfares. Delta saw a surge in international travel demand during the quarter, with trans-Atlantic trip revenue up 34% year over year. For the fourth quarter, the airline estimated revenue will rise 9% to 12% with EPS between $1.05 and $1.30. Delta trimmed its full-year forecast, now expecting adjusted EPS of $6 to $6.25 vs $6 to $7 previously and free cash flow of $2 billion vs the prior $3 billion forecast. Walgreens Rises Despite Earnings Miss Walgreens Boots Alliance (WBA) shares are rising 1.7% in premarket trade despite missing fiscal Q4 profit expectations and issuing soft guidance. Here’s how the retail pharmacy giant’s results compared to analysts’ estimates: Adjusted EPS: $0.67 vs $0.69 expected Revenue: $35.42 billion vs $34.78 billion expected Revenue rose roughly 9% year over year. Sales in the U.S. retail pharmacy segment rose 3.7%, pharmacy sales rose 6.4%, and international sales jumped 12%. But total prescriptions filled fell by 0.5% and retail sales declined 4.3%. Walgreens forecast adjusted EPS of $3.20 to $3.50 in the next fiscal year, below analysts’ estimates of $3.72. The company expects $141 billion to $145 billion in revenue vs $144 billion expected. Ford Slips As UAW Expands Strike Ford (F) shares are down 2.2% ahead of the open after the United Auto Workers Union expanded its strike against the automaker. UAW began its strike at the Kentucky Truck Plant at 6:30 p.m. ET on Wednesday. That plant is where Ford produces its Super Duty pickup trucks as well as Ford Expedition and Lincoln Navigator SUVs. The plant employs 8,700 UAW members and is Ford’s largest in terms of employment and revenue. In a press release, the union said, “The strike was called after Ford refused to make further movement in bargaining. The surprise move marks a new phase in the UAW’s Stand Up Strike.” Ford said the “decision by the UAW to call a strike at Ford’s Kentucky Truck Plant is grossly irresponsible but unsurprising given the union leadership’s stated strategy of keeping the Detroit 3 wounded for months through ‘reputational damage’ and ‘industrial chaos.’”
Continue Reading -->Coffee With Greta: PPI Comes In Hot
Register now for today’s free trading Q&A on LinkedIn with James Young from the Strategic Day Trader VTF®! DJIA Futures: +54 (+0.2%) SPX Futures: +7 (+0.2%) NASDAQ Futures: +38 (+0.3%) Good morning friends! Futures are higher but have trimmed some earlier gains after the release of hotter-than-expected inflation data. Let’s get right to it! Wholesale Inflation Runs Hot Wholesale inflation pressures were hotter than expected in September. The Bureau of Labor Statistics’ producer price index rose 0.5% monthly and 2.2% year over year vs 0.3% monthly and 1.6% annually expected. The core PPI jumped 0.3% monthly and 2.7% annually vs 0.2% monthly and 2.2% annually expected. This data is a leading indicator for the CPI as producers pass down higher prices to consumers. The September CPI will be released Thursday morning. Adjustable-Rate Mortgage Demand Jumps Overall mortgage demand rose slightly last week, driven by a jump in adjustable-rate applications. The Mortgage Bankers Association reported total application volume rose 0.6% from the previous week. Purchase applications rose 1% weekly while refinance applications increased 0.3%. MBA’s vice president said, “The level of ARM applications increased by 15% over the week, bringing the ARM share up to 9.2% of all applications, the highest share since November 2022.” The average 30-year fixed contract rate rose to 7.67% from 7.53%, the highest level since 2000. But the average rate on 5/1 ARMs decreased to 6.33% from 6.49%. Exxon To Buy Pioneer Natural Resources Pioneer Natural Resources (PXD) shares are up 1.8% ahead of the open after Exxon Mobil (XOM) announced it has agreed to buy the company. Under the agreement, Exxon will buy Pioneer for $59.5 billion in an all-stock deal. That values the stock at $253 per share. Pioneer stockholders will receive 2.3234 XOM shares for every PXD share they own. The deal is expected to close in the first half of 2024. Exxon said this acquisition will more than double its production volume in the Permian Basin. The oil giant’s CEO said, “The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis.” Plug Power Rallies On Rosy Forecast Plug Power (PLUG) shares are jumping 8.9% in premarket trade after the company released strong guidance for the next few years. In a regulatory filing, the company said it expects to generate $6 billion in revenue by 2027 and $20 billion in revenue by 2030. Plug Power expects to generate about $1.2 billion in 2023, slightly below analysts’ estimates of $1.28 billion. The company projected a compound annual growth rate in revenue of about 50% and a 5% gross margin over the next seven years.
Continue Reading -->Coffee With Greta: Rush To Safety
Register now for this tomorrow’s free trading Q&A on LinkedIn with James Young from the Strategic Day Trader VTF®! DJIA Futures: +62 (+0.2%) SPX Futures: +4 (+0.1%) NASDAQ Futures: +5 (+0.03%) Good morning friends! Futures are rising as Treasury yields drop. Let’s get right to it! Yields Drop Treasury yields are dropping this morning as investors flood the bond market amid uncertainty about the impact of the Israel-Hamas war. The 2-year yield is down 9 basis points at 4.99% while the 10-year yield is down 12 basis points at 4.69%. This is the first day the bond market is open since the war began after being closed for Columbus Day on Monday. Investors have concerns about how the war may affect the global economy and markets. IMF Hikes U.S. Growth Outlook The International Monetary Fund raised its projection for U.S. economic growth this year. The group released an updated World Economic Outlook this morning, forecasting 2.1% growth in the U.S. That was up 0.3% from its July forecast. The IMF also raised its outlook for U.S. growth in 2024 by 0.5% to 1.5%. But the group expects slower growth for the euro zone. The euro zone’s 2023 forecast was revised down by 0.2% to 0.7% and the 2024 forecast was lowered by 0.3% to 1.2%. The IMF reiterated its global growth forecast of 3% this year and lowered its 2024 global forecast by 0.1% to 2.9%. Pepsi Jumps After Earnings Beat PepsiCo (PEP) shares are up 1.0% ahead of the open after beating fiscal Q3 expectations on the top and bottom line. Here’s how the beverage giant’s results compared to analysts’ estimates: Adjusted EPS: $2.25 vs $2.15 expected Revenue: $23.45 billion vs $23.39 billion expected Net sales rose 6.7% year over year with organic revenue up 8.8%. Pepsi hiked its full-year forecast for the third consecutive quarter following the beat. The company now expects EPS growth of 13% this year vs 12% previously. Palantir Wins Army Contract Palantir (PLTR) shares are rising 2.5% in premarket trade after the data analytics company was awarded a $250 million Army contract. The company said it was “awarded a new contract for up to three years to provide additional capabilities in support of the Combatant Commands (COCOMs), Armed Services, Intelligence Community, and Special Forces as they continue to test, utilize, and scale artificial intelligence (AI) and machine learning (ML) capabilities.” Since 2018, Palantir has provided the Army leading data integration, management, and AI model training. The company’s president said, “We’re honored to expand our partnership with the Army to continue delivering the most innovative technologies and advanced data applications across the Armed Services.” Unity CEO Retires Unity Software (U) shares are up 3.9% ahead of the open after announcing its CEO’s retirement. In a post on its website today, the company said CEO John Riccitiello will retire as President, CEO, Chairman, and a member of the Board effective immediately. Riccitiello said, “It’s been a privilege to lead Unity for nearly a decade and serve our employees, customers, developers and partners, all of whom have been instrumental to the Company’s growth. I look forward to supporting Unity through this transition and following the Company’s future success.” Unity appointed James M. Whitehurst as interim CEO, President, and member of the Board. The current Lead Independent Director of the Board will take over as Chairman. The company said it “will initiate a comprehensive search process, with the assistance of a leading executive search firm, to identify a permanent CEO.” Unity reaffirmed its Q3 guidance with results set to be released after the market close on November 9.
Continue Reading -->Coffee With Greta: Oil Prices Surge, Stocks Drop
Register now for this week’s free trading Q&A with James Young from the Strategic Day Trader VTF! DJIA Futures: -199 (-0.6%) SPX Futures: -29 (-0.7%) NASDAQ Futures: -119 (-0.8%) Good morning friends! Futures are falling as a war breaks out in the Middle East following Hamas’ brutal attacks against Israel over the weekend. Let’s get right to it! Oil Prices Jump Oil prices are surging this morning in response to the war between Israel and Hamas. West Texas Intermediate crude futures are up 4.1% at over $86 bbl while Brent crude futures are up 3.9% at just under $88 bbl. But analysts believe this surge in prices will be a temporary reaction unless there is a sustained reduction in oil supply or transport. Neither country is a major oil producer but the conflict is taking place near a key oil producing and export region. Energy stocks are popping alongside oil prices. The Energy Select Sector SPDR ETF (XLE) is up 2.7% ahead of the open, with Exxon Mobil (XOM) shares rising 2.6%, Chevron (CVX) shares up 2.9%, and Occidental Petroleum (OXY) shares up 3.2%. Activist Investor Hikes Disney Stake Walt Disney (DIS) shares are up 1.4% in premarket trade following a report over the weekend that activist investor Nelson Peltz’s Trian Fund Management increased its stake in the company. The Wall Street Journal reported Trian’s Disney stake is now worth over $2.5 billion. The fund now holds more than 30 million shares vs 6.4 million at the end of June. The report said Trian is planning to request multiple seats on the Disney board, including one for Peltz. Disney previously denied a request from Peltz to join the board, arguing he didn’t understand the media industry. If Disney were to deny any upcoming requests, Trian could nominate directors that would be voted on at the annual meeting next spring. Tesla Slips On Declining China Sales Tesla (TSLA) shares are slipping 1.8% ahead of the open following a report that its China-made EV sales dropped in September. The China Passenger Car Association reported Sunday that Tesla sold 74,073 China-made EVs last month. That was a 10.9% decrease year over year. Sales of Model 3 and Model Y cars made in China dropped 12% from August. Meanwhile, Tesla’s Chinese rival BYD saw its sales jumped 42.8% year over year last month. Inflation Week This will be an important and busy week of economic data for traders. Things start off slow with a couple of Fed speeches today, then the NFIB small business optimism index and wholesale inventories Tuesday morning. Wednesday morning the Bureau of Labor Statistics releases the September producer price index, followed by the Fed’s September meeting minutes in the afternoon. On Thursday, traders will get weekly jobless claims and the September CPI in the morning. And on Friday, September import prices will be reported in the morning followed by the University of Michigan’s preliminary consumer sentiment index. Earnings season also kicks off with the big banks on Friday. Bond Market Closed A reminder that the bond market is closed today in observance of Columbus Day.
Continue Reading -->Coffee With Greta: Traders Assess Strong Jobs Data
I will be out of office from September 29 through October 6, Coffee With Greta will resume like normal on Monday, October 9. DJIA Futures: -43 (-0.1%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -48 (-0.3%) Good morning friends! Futures are falling as traders digest stronger than expected jobless claims data. Let’s get right to it! Weekly Jobless Claims Rise Less Than Expected Weekly jobless claims rose less than expected last week amid continued strength in the labor market. The Labor Department reported 204,000 Americans filed initial claims for unemployment benefits. That was up by 2,000 from the previous week and lower than 214,000 expected. Continuing jobless claims rose by 12,000 to 1.67 million in the week ending September 16. Micron Drops On Weak Forecast Micron (MU) shares are down 2.6% ahead of the open after beating fiscal Q4 expectations but issuing weak earnings guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted loss per share: $1.07 vs $1.15 expected Revenue: $4.01 billion vs $3.9 billion expected For the full fiscal 2023 year, Micron’s revenue totaled $15.5 billion, down 49% year over year. The company lost $4.45 per share on a non-GAAP basis vs profit of $7.75 per share last year. For the fiscal first quarter, Micron forecast $4.4 billion in revenue vs $4.2 billion expected and a non-GAAP loss of $1.07 per share vs $1.04 expected. CarMax Slides CarMax (KMX) shares are tumbling 12.2% in premarket trade after reporting a sharp decline in fiscal Q2 revenue. Here’s how the used car dealer’s results compared to a year ago: EPS: $0.75 vs $0.79 last year Revenue: $7.1 billion, down 7.4% from a year ago Comparable store sales dropped 9% year over year with the average selling price down by $1,200 per unit, about 4%. CarMax said, “We believe vehicle affordability challenges continued to impact our second quarter unit sales performance, as headwinds remained due to widespread inflationary pressures, higher interest rates, tightened lending standards and prolonged low consumer confidence.” Peloton Rallies On Lululemon Partnership Peloton (PTON) shares are up 9.3% ahead of the open after announcing a new strategic partnership with Lululemon (LULU). Lulu shares are up 0.1%. The two companies announced a five-year partnership after the close on Wednesday. The partnership will bring Peloton’s content to Lululemon’s exercise app and Lululemon will become Peloton’s primary athletic apparel partner. A select number of Peloton instructors will also become Lululemon ambassadors. Lululemon’s exercise app has about 13 million members, nearly double Peloton’s global member count. GameStop Names Ryan Cohen CEO GameStop (GME) shares are jumping 7.8% in premarket trade after appointing Ryan Cohen as its new CEO, chairman, and president. The change is effective immediately and Cohen will not collect a salary. GameStop’s board unanimously voted to appoint Cohen as CEO on Wednesday.
Continue Reading -->Coffee With Greta: Yields Down, Stocks Up
Register now for today’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: +99 (+0.3%) SPX Futures: +17 (+0.4%) NASDAQ Futures: +55 (+0.4%) Good morning friends! Futures are rising as traders attempt a bounce back from Tuesday’s losses. Let’s get right to it! Yields Down, Stocks Up Treasury yields are falling this morning with stocks rising. The 2-year yield is down 1 basis point at 5.07% while the 10-year yield is down 4 basis points at 4.49%. The recent increase in rates has put pressure on equities with the Dow logging its worst day since March on Tuesday. So far in September, the Dow is down 3.2%, the S&P 500 has dropped 5.2%, and the Nasdaq has tumbled nearly 7%. Costco Tops Fiscal Q4 Expectations Costco (COST) shares are slipping 1.9% ahead of the open despite beating fiscal Q4 expectations on the top and bottom line. Here’s how the warehouse-club’s results compared to analysts’ estimates: EPS: $4.86 vs $4.79 expected Revenue: $78.9 billion vs $77.9 billion expected Total comparable sales rose 1.1% year over year but just 0.2% in the U.S. Excluding gas, comparable sales rose 3.8% overall and 3.1% in the U.S. Costco’s average transaction amount during the quarter dropped nearly 4% globally and 4.5% in the U.S. The company had 71 million paid household members at the end of the quarter, up nearly 8% from a year ago. The CFO highlighted a shift in consumer spending away from discretionary items like furniture, small electronics, and jewelry. That contributed to the 0.8% decline in e-commerce sales during the quarter. Durable Goods Orders Climb Unexpectedly Durable goods orders rose unexpectedly in August, boosted by strong defense spending. The Census Bureau reported orders rose 0.2% last month vs expectations for a 0.5% decline. Defense spending was higher during the month as the U.S. worked to replenish military hardware that has been sent to Ukraine. Durable goods orders minus defense fell 0.7%. Durable goods orders excluding transportation rose 0.4%. Mortgage Demand Slips Mortgage demand fell last week as rates hit a 23-year high. The Mortgage Bankers Association reported total application volume fell 1.3% weekly and 25.5% year over year. Purchase applications fell 2% weekly and 27% annually. Refinance applications were down 1% weekly and 21% lower than a year ago. The average 30-year fixed contract rate rose to 7.41% from 7.31%, the highest since the year 2000. In Case You Missed It New home sales fell more than expected in August. The Census Bureau reported new sales dropped 8.7% to a seasonally adjusted annual rate of 675,000 units vs 695,000 expected. July’s new home sales were also revised higher to 739,000. New home sales have fallen to the lowest level since March 2023 as mortgage rates remain well-above 7%. Consumer confidence tumbled to a four-month low this month. The Conference Board’s consumer confidence index dropped 5.7 points to 103 vs 105.5 expected. Confidence in current economic conditions rose 0.4 points to 147.1. But the six month expectations index dropped 9.6 points to 73.7. That was below the 80 mark that’s know as a recession signal.
Continue Reading -->Coffee With Greta: September Losses Continue
Register now for tomorrow’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -180 (-0.5%) SPX Futures: -26 (-0.6%) NASDAQ Futures: -92 (-0.6%) Good morning friends! Futures are dropping as traders add to September’s losses. Let’s get right to it! Yields Cool U.S. Treasury yields are falling this morning after hitting multiyear highs over the past few days. The 2-year yield is down 2 basis points to 5.13% while the 10-year yield is down 4 basis points to 4.49%. Investors are looking ahead to important economic data for the Fed this week to help determine when the next rate hike may be. Fed Chair Jerome Powell is scheduled to speak Thursday afternoon and the bank’s preferred inflation gauge, the core PCE price index, will be released Friday morning. Shutdown Countdown The House is preparing to vote on four funding bills today in order to avoid a government shutdown this weekend. Those bills include funding for the Departments of Defense, Homeland Security, State and Agriculture. But even if passed along party lines in the Republican-controlled House, the bills are not expected to be considered in the Democrat-controlled Senate. Congress has until Saturday night to pass a full funding package or a continuing resolution to extend funding while negotiations continue. House Speaker Kevin McCarthy has said he wants to pass a short-term deal to fund the government for 45 days but acknowledged he may not have the votes from hard-right Republicans who want steep spending cuts. Oil Prices Fall Oil prices are down this morning as demand concerns rise due to the high interest rate outlook. West Texas Intermediate crude futures are down 0.6% at just over $89 bbl with Brent crude futures down 0.6% at under $93 bbl. Fed officials and other central banks around the world have reiterated plans in recent days to keep monetary policy tight for longer than previously anticipated. That impacts oil prices because higher rates slow economic growt, which lowers oil demand. Tesla Falls After EU Investigation Report Tesla (TSLA) shares are down 0.9% ahead of the open following a Financial Times report that EV makers that export from China to the EU are set to be investigated. Brussels’ most senior trade official said the EU will investigate whether Tesla and other EV makers are receiving unfair subsidies. When asked if the investigation applied to Tesla, he said, “Strictly speaking, it’s not limited only to Chinese brand electrical vehicles, it can be also other producers’ vehicles if they are receiving production-side subsidies.”
Continue Reading -->Coffee With Greta: Wake Me Up, When September Ends
Register now for Wednesday’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: -62 (-0.2%) SPX Futures: -10 (-0.2%) NASDAQ Futures: -32 (-0.2%) Good morning friends! Futures are lower as markets enter the final week of September. Let’s get right to it! New Week Stocks are slipping and yields are rising as the last week of September begins on Wall Street. So far this month, the S&P 500 is down 4.2%, on pace for its second straight monthly drop and worst month since December. The Nasdaq is down 5.9% in September so far, also its biggest monthly loss since December. And the Dow is down 2.2% this month. While stocks have been dropping throughout the month, Treasury yields have hit the highest levels since 2007. The 2-year yield is up 3 basis points this morning at 5.12% while the 10-year yield is up 7 basis points at 4.51%. The spike in yields comes after the Fed signaled it plans to hike rates one more time this year and only cut twice in 2024. Government Shutdown Looms Congress is facing an October 1 deadline to avoid a government shutdown and things are looking grim. In order to avoid a shutdown, Congress must pass a funding bill and the President must sign it into law by 12:00 a.m. ET on October 1. But no progress has been made toward a deal that both the Republican-controlled House and the Democrat-controlled Senate would pass. If a shutdown occurs, millions of federal workers will be impacted and without pay including roughly 2 million military personnel and more than 2 million civilian workers. Goldman Sachs estimates a shutdown would reduce economic growth by 0.2% every week it lasted. Media Stocks Rise On Potential Deal With Writers Paramount Global (PARA) shares are up 1.3% with Warner Bros Discovery (WBD) shares rising 1.8% ahead of the open amid news Hollywood writers and studios have reached a preliminary labor agreement. Talks resumed between the Writers Guild of America (WGA) and the Alliance of Motion Picture and Television Producers (AMPTP) last week. The two groups are reportedly still drafting the final language of the counteract. In a letter to members, the WGA’s negotiation committee wrote, “What we have won in this contract — most particularly, everything we have gained since May 2nd — is due to the willingness of this membership to exercise its power, to demonstrate its solidarity, to walk side-by-side, to endure the pain and uncertainty of the past 146 days. It is the leverage generated by your strike, in concert with the extraordinary support of our union siblings, that finally brought the companies back to the table to make a deal.” The WGA did not layout details of the deal but said it “is exceptional — with meaningful gains and protections for writers in every sector of the membership.” Actors remain on strike as the AMPTP still needs to resume negotiations with SAG-AFTRA. Oil Prices Steady Oil prices are down slightly to start the new week after Russia relaxed some of its fuel ban. West Texas Intermediate crude futures are down 0.3% at under $90 bbl while Brent crude futures are down 0.2% at just over $93 bbl. Government documents show Russia lifted restrictions for fuel used as bunkering for some vessels and diesel with high sulfur content. But the export ban on all types of gasoline and high-quality diesel remains in place.
Continue Reading -->Coffee With Greta: End Of Week Pop
Register now for next week’s free trading Q&A with pro trader and Chartered Market Technician Andrew Moss! DJIA Futures: +39 (+0.1%) SPX Futures: +15 (+0.4%) NASDAQ Futures: +93 (+0.6%) Good morning friends! Futures are slightly higher but the market is still on track for big weekly losses. Let’s get right to it! Yields Slip Treasury yields are slipping this morning as investors assess the future of the U.S. economy. The 2-year yield is down 3 basis points at 5.12% while the 10-year yield is down 2 basis points at 4.47%. The slight pullback comes after both hit the highest levels seen since 2006 and 2007 on Thursday. Government Shutdown Fears Intensify Fears of a government shutdown intensified on Thursday as House Republican leaders sent the chamber into recess. Congress has until the end of next week to pass a bill to fund the government. But a rules vote on a Pentagon funding bill failed on Thursday, despite these bills typically being approved by wide margins. Even if a funding bill were passed by the Republican-controlled House by next week, it would be unlikely to pass in the Democrat-controlled Senate. But House Republicans are facing opposition from members of their own party in the lower chamber. The market is concerned about the possibility of a government shutdown cutting into fourth-quarter GDP and undermining global confidence in the U.S. Oil Prices Rise On Fresh Supply Fears Oil prices are back on the rise today amid renewed supply fears from Russia’s fuel ban. West Texas Intermediate crude futures are up 1% at $90.50 bbl with Brent crude futures up 0.8% at just over $94 bbl. Russian state media said pipeline company Transneft has suspended diesel deliveries to the Baltic and Black Sea terminals of Permorsk and Novorossiysk. The country also temporarily banned gas and diesel exports to all countries except four ex-Soviet states to stabilize its domestic fuel market. This ban comes on top of the extended production cuts from Saudi Arabia and Russia, putting more pressure on global supply.
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