Coffee With Greta: Focus On Rates
Register now for next week’s free trading Q&A on LinkedIn with me and JR Romero! DJIA Futures: -86 (-0.3%) SPX Futures: -33 (-0.7%) NASDAQ Futures: -197 (-1.3%) Good morning friends! Futures are falling as traders remain focused on interest rates. Let’s get right to it! Weekly Jobless Claims Drop Weekly jobs claims fell unexpectedly again last week. The Labor Department reported 216,000 Americans filed initial claims for unemployment benefits. That was down by 12,000 from the week before and lower than expectations for claims to rise to 233,000. It was the lowest level of claims since February. Continuing claims fell by 36,000 to 1.68 million in the week ending August 26 vs 1.72 million expected. Q2 Productivity Revised Down, Labor Costs Revised Up Unit labor costs during the second quarter were revised higher while worker productivity was revised down. The Bureau of Labor Statistics reported labor costs rose 2.2% in Q2, up from the first estimate of 1.6%. That was down from the 3.3% increase in Q1. The higher costs included a 5.7% increase in hourly compensation. Q2 productivity increased 3.5%, down from the 3.7% initial estimate and lower than 3.8% expected. That change included a 0.5% downward revision to output and 0.2% downward revision to hours worked. GameStop Drops Despite Earnings Beat GameStop (GME) shares are down 1.9% ahead of the open despite beating Q2 expectations on the top and bottom line. Here’s how the video game retailer’s results compared to analysts’ estimates: Loss per share: $0.03 vs $0.14 expected Revenue: $1.16 billion vs $1.14 billion expected GameStop’s expenses decreased to 27.7% of net sales vs 34.1% a year ago. The stock originally jumped in after-hours trading after the results on Wednesday but has since pulled back. AI Plunges C3.ai (AI) shares are tumbling 13.3% in premarket trade after beating fiscal Q1 expectations but issuing weak guidance. Here’s how the artificial intelligence software company’s results compared to analysts’ estimates: Adjusted loss per share: $0.09 vs $0.17 expected Revenue: $72.4 million vs $71.6 million For the fiscal second-quarter, C3.ai called for an operating loss between $27 million and $40 million. That was sharply higher than analysts’ expectations for a $26.6 million loss. The company also withdrew its forecast to reach non-GAAP profitability by the end of this fiscal year. The CEO said, “After careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions.” In Case You Missed It The Fed’s latest Beige Book was released Wednesday afternoon, saying, “Contacts from most Districts indicated economic growth was modest during July and August.” Consumer spending on tourism was stronger than expected during the period while other spending slowed. The survey said job growth was subdued across the nation and most districts expect wage growth to slow broadly in the months ahead. Respondents said price growth slowed overall as businesses struggle to pass along cost pressures to consumers. That resulted in lower profit margins across several districts. Activity in the U.S. services sector was stronger than expected in August. The Institute for Supply Management’s services PMI rose unexpectedly to 54.5% last month vs 52.5% expected. That reading was up by 1.8% from July. It was the eight consecutive month of positive readings, with any reading above 50 signaling growth in the sector. The business activity index rose 0.2% to 57.3% and the new orders index increased 2.5% to 57.5%.
Continue Reading -->Coffee With Greta: Continued Weakness
Register now for today’s free trading Q&A on LinkedIn with me and Sami Abusaad! DJIA Futures: -82 (-0.2%) SPX Futures: -11 (-0.3%) NASDAQ Futures: -41 (-0.3%) Good morning friends! Futures are slipping, adding to Tuesday’s losses. Let’s get right to it! Boston Fed President Comments On Rates Boston Fed President Susan Collins is calling for a patient approach to future monetary policy. In a speech this morning, Collins said the Fed may be “near or even at the peak” for interest rates. But she said more hikes may be needed depending on future data. Collins said, “Overall, we are well positioned to proceed cautiously in this uncertain economic environment, recognizing the risks while remaining resolute and data-dependent, with the flexibility to adjust as conditions warrant.” These comments align with other recent Fed statements which have all supported remaining data dependent. Collins said, “There are promising developments, but given the continued strength in demand, my view is that it is just too early to take the recent improvements as evidence that inflation is on a sustained path back to 2%.” CME Group’s FedWatch Tool shows 93% of traders expect no rate hike on September 20 with the market split on the possibility of one last hike on November 1. Roku Rallies After Layoff Announcement Roki (ROKU) shares are up 9.3% ahead of the open after announcing plans to lay off 10% of its staff. The company announced that move in a new SEC filing this morning. Roku’s cost-cutting efforts also include consolidating office space, reviewing its content portfolio, and reducing outside services expenses. The company also hiked its Q3 revenue guidance, now expecting $835 million to $875 million vs $815 million previously. Southwest Slips On Weak Bookings Southwest Airlines (LUV) shares are down 3.6% in premarket trade after reporting weak leisure bookings in August. The airline said those bookings were on the lower-end of its expectations and cut its Q3 outlook in response. Southwest now expects revenue per available seat mile to decline year over year by 5% to 7% vs 3% to 7% previously. The airline also expects fuel costs to be higher in the quarter, forecasting $2.70 to $2.80 per gallon vs $2.55 to $2.65 previously. Southwest did say it booked record revenue for Labor Day weekend and in a statement said, “the Company continues to expect record third quarter operating revenues.” Mortgage Demand Drops Mortgage demand fell to a 27-year low last week despite rates pulling back for the first time in weeks. The Mortgage Bankers Association reported total application volume fell 2.9% from the previous week, to the lowest level since December 1996. Purchase applications fell 2% weekly and 28% year over year while refinance applications were down 5% weekly and 30% annually. The average 30-year fixed contract rate slipped to 7.21% from 7.31% the previous week. That was the first decline in several weeks but rates remained more than a full percentage point higher than a year ago. Trade Deficit Widens Less Than Expected The U.S. trade gap widened less than expected in July. The Commerce Department reported the deficit rose 2% to $65 billion. The was lower than expectations for $68 billion. The June deficit was also revised lower from $65.5 billion to $63.7 billion. Both exports and imports rose in July. Exports were up 1.6% to $251.7 billion, the first gain in three months. Imports rose 1.7% to $316.7 billion.
Continue Reading -->Coffee With Greta: Short Week
Register now for tomorrow’s free trading Q&A on LinkedIn with me and Sami Abusaad! DJIA Futures: +21 (+0.1%) SPX Futures: -4 (-0.1%) NASDAQ Futures: -32 (-0.2%) Good morning friends! Futures are mostly lower as traders begin the holiday-shortened week. Let’s get right to it! September Begins The major indices are coming off a strong week as new data showed the economy slowing. The Dow rose 1.4% last week while the Nasdaq was up 3.3%, their best weekly performances since July. The S&P 500 rose 2.5%, its best week since June. But September is historically the weakest month for stocks and will include some key data ahead of the Fed’s next rate decision on September 20. CME Group’s FedWatch Tool currently shows 93% of traders expecting no rate hike at that meeting. Airbnb, Blackstone To Join S&P 500 Airbnb (ABNB) shares are rallying 5.8% ahead of the open while Blackstone (BX) shares are up 3.7% after S&P Dow Jones Indices announced the two companies will join the S&P 500. Airbnb will replace Lincoln National Corp (LNC) and Blackstone will replace Newell Brands Inc (NWL). The change is expected to take place later this month. Lincoln National and Newell will both be moved to the S&P SmallCap 600, replacing UNIQURE N.V. (QURE) and Universal Insurance Holdings (UVE) respectively. NextGen Healthcare Jumps NextGen Healthcare Inc (NXGN) shares are up 8.0% in premarket trade following a Bloomberg report a private equity firm is in talks to buy the company. Sources say Thoma Bravo could reportedly announce a deal for the health records software company as soon as this week. The talks are still ongoing and both companies did not respond to requests for comment. NextGen has a market cap of about $1.3 billion as of Friday’s close.
Continue Reading -->Coffee With Greta: Jobs Report Boost
Register now for next week’s free trading Q&A on LinkedIn with me and Sami Abusaad! DJIA Futures: +154 (+0.4%) SPX Futures: +25 (+0.5%) NASDAQ Futures: +88 (+0.6%) Good morning friends! Futures are rising as traders hope higher unemployment will keep the Fed from hiking rates further. Let’s get right to it! Unemployment Rate Rises U.S. job growth was stronger than expected in August while the unemployment rate rose unexpectedly. The Labor Department reported the U.S. economy added 187,000 jobs last month vs 170,000 expected. The unemployment rate rose to 3.8% from 3.6%, the highest since February 2022. Economists were expecting the unemployment rate to dip to 3.5% in August. Traders are hoping that will be a good sign for the Fed that the labor market is cooling. The labor force participation rate increased to 62.8%, the highest since February 2020. Average hourly earnings rose 0.2% monthly and 4.3% year over year, below estimates for 0.3% monthly and 4.4% annually. The jobs report also included downward revisions to previous months. June was revised lower by 80,000 to +105,000 and July was revised down by 30,000 to +157,000. Lululemon Beats Expectations, Boosts Outlook Lululemon (LULU) shares are up 2.4% ahead of the open after beating Q2 expectations and raising its full-year guidance. Here’s how the athletic apparel retailer’s results compared to analysts’ estimates: EPS: $2.68 vs $2.54 expected Revenue: $2.21 billion vs $2.17 billion expected Sales jumped 18% year over year with comparable sales rising 11% vs 12.1% expected. Lululemon’s gross margin during the quarter was 58.8% vs 58.5% expected. The company forecast Q3 EPS between $2.23 and $2.28 on revenue of $2.17 billion to $2.19 billion, in line with estimates. Lululemon expects full-year profits to be between $12.02 and $12.17 per share vs previous guidance of $11.74 to $11.94. The company also sees full-year sales between $9.51 billion and $9.57 billion, up from $9.44 billion to $9.51 billion previously. Dell Rallies On Earnings Beat Dell (DELL) shares are rallying 12.4% in premarket trade after sharply beating Q2 expectations on the top and bottom line. Here’s how the PC maker’s results compared to analysts’ estimates: Adjusted EPS: $1.74 vs $1.10 expected Revenue: $22.9 billion vs $20.9 billion expected Revenue was down 13% from a year ago but up 10% from Q1 and stronger than the company’s own forecast. Dell reported $3.2 billion in cash flow from operations vs analysts’ estimates for a $465 million loss. The company’s PC business, the Client Solutions Group, reported $12.9 billion in revenue vs $12.1 billion expected. That was up 8% from the first quarter. The company’s vice chairman and COO said, “With a better demand environment and strong execution, we delivered extraordinary Q2 results. We continue to focus on the most profitable segments of the market where we have a leading position.” Dell forecast fiscal Q3 adjusted EPS of $1.45 on $22.5 billion to $23.5 billion in revenue. That topped analysts’ estimates for $1.37 EPS on $21.7 billion in revenue. The company sees full-year profits of $6.30 per share on $89.5 billion to $91.5 billion in revenue. Analysts were forecasting full-year earnings of $5.56 per share on $86.9 billion in revenue. In Case You Missed It Shopify (SHOP) shares rallied 10.8% on Thursday after the company struck a deal with Amazon (AMZN). Shopify will offer Amazon’s “Buy with Prime” program to merchants on the site. This will allow merchants to add the Prime logo and offer Amazon’s quick delivery service options on their Shopify storefronts. Members of Amazon Prime will be able to checkout on Shopify sites using their Amazon accounts. AMZN shares close 2.2% higher on the news.
Continue Reading -->Coffee With Greta: Closing August
Register now for next week’s free trading Q&A on LinkedIn with me and Sami Abusaad! DJIA Futures: +154 (+0.4%) SPX Futures: +8 (+0.2%) NASDAQ Futures: -1 (-0.01%) Good morning friends! Futures are mostly higher as traders digest new economic data. Let’s get right to it! PCE Inflation Ticks Higher, As Expected The Fed’s preferred inflation gauge rose as expected in July. The Bureau of Economic Analysis’ PCE price index rose 0.2% monthly and 3.3% annually. That was in line with economists’ estimates but higher than the 3% annual rate in June. The core PCE price index rose 0.2% monthly and 4.2% year over year. That was also in line with economists’ expectations but a tick higher from the 4.1% annual rate in June. Prices for services rose 0.4% last month while goods price fell 0.3%. Food prices were up 0.3% and energy prices rose 0.1%. The report also showed consumer spending was stronger than expected. Personal spending rose 0.8% monthly vs 0.7% expected and up from 0.5% in June. But income growth pulled back slightly. Personal incomes rose 0.2% monthly in July vs 0.3% expected and 0.3% in June. Weekly Jobless Claims Hit 4-Week Low Weekly jobless claims fell unexpectedly last week. The Labor Department reported 228,000 Americans filed initial claims for unemployment benefits. That was down by 4,000 from the previous week and lower than 235,000 expected. It was the lowest level of claims since the week ended July 29. The previous week was also revised higher to 232,000 vs 230,000 previously. Continuing claims rose by 28,000 to 1.73 million in the week ending August 19. Dollar General Tumbles On Earnings Miss Dollar General (DG) shares are tumbling 16.2% ahead of the open after missing Q2 expectations. Here’s how the discount retailer’s results compared to analysts’ estimates: EPS: $2.13 vs $2.47 expected Revenue: $9.80 billion vs $9.93 billion expected Same-store sales decreased 0.1% from Q1 as customer traffic slowed. The CEO said, “While we are not satisfied with our overall financial results, we made significant progress in the second quarter improving execution in our supply chain and our stores, as well as reducing our inventory growth rate and further strengthening our price position.” But Dollar General slashed its full-year outlook after the miss. The company now sees net sales growth between 1.3% and 3.3% this year compared to 3.3% to 5% previously. Dollar General also expects full-year earnings to decline between 34% and 22% compared to previous guidance for an 8% drop to flat growth. Salesforce Jumps After Earnings Beat, Strong Guidance Salesforce (CRM) shares are up 6.5% in premarket trade after beating Q2 expectations on the top and bottom line. Here’s how the software company’s results compared to analysts’ estimates: Adjusted EPS: $2.12 vs $1.90 expected Revenue: $8.60 billion vs $8.53 billion expected Revenue increased 11% year over year. Salesforce forecast Q3 adjusted EPS between $2.05 and $2.06 on revenue between $8.7 billion and $8.72 billion vs $1.83 EPS and $8.66 billion in revenue expected. The company also hiked its full-year outlook, now expecting adjusted EPS between $8.04 and $8.06 on $34.7 billion to $34.8 billion in revenue. That implies 11% revenue growth and topped expectations for adjusted EPS of $7.45 on $34.65 billion in revenue. In Case You Missed It Pending home sales rose unexpectedly in July. The National Association of Realtors reported the number of purchase contracts signed last month rose 0.9% vs expectations for a 0.5% decrease. Transactions were still down 14% year over year. These pending sales are expected to close 30 to 60 days after the contract is signed.
Continue Reading -->Coffee With Greta: Slowing Private Job Growth
Register now for today’s free pro trader Q&A on LinkedIn with me and T3 Trading Group’s Patrick Hawe! DJIA Futures: +31 (+0.1%) SPX Futures: +3 (+0.1% NASDAQ Futures: +11 (+0.1%) Good morning friends! Futures are slightly higher as traders look to extend the 3-day winning streak. Let’s get right to it! Private Job Growth Slows Private job growth slowed more than expected in August. Payroll firm ADP reported the U.S. private sector add 177,000 jobs vs 200,000 expected. That was a sharp slowdown from the revised 371,000 in July. ADP’s chief economist said, “This month’s numbers are consistent with the pace of job creation before the pandemic. After two years of exceptional gains tied to the recovery, we’re moving toward more sustainable growth in pay and employment as the economic effects of the pandemic recede.” This data is good news for the Fed’s efforts against inflation and comes ahead of the official Labor Department jobs report on Friday. That’s expected to show the economy added 170,000 jobs with the unemployment rate slipping to 3.5%. Q2 GDP Revised Lower Second-quarter economic growth was unexpectedly revised lower. The Commerce Department’s second estimate shows GDP grew at a 2.1% annual rate last quarter vs the first estimate of 2.4%. Economists were expecting the second estimate to be unchanged from the first. Nonresidential fixed investment and inventory investment were both lower than originally estimated, which contributed to the revision lower. HP Tumbles After Mixed Results HP Inc (HPQ) shares are dropping 8.2% ahead of the open after reporting mixed fiscal Q3 results. Here’s how the computing giant’s results compared to analysts’ estimates: Adjusted EPS: $0.86, as expected Revenue: $13.2 billion vs $13.4 billion expected Revenue was down 10% year over year and this was the third straight quarter HP has missed analysts’ revenue estimates. The company also issued cautious guidance for fiscal Q4. HP expected adjusted EPS between $0.85 and $0.97 next quarter vs analysts’ estimates for $0.95. The CEO said, “While we expect another quarter of sequential growth in [the fourth quarter], the external environment has not improved as quickly as anticipated and we are moderating our expectations as a result.” In Case You Missed It The Labor Department’s Job Openings and Labor Turnover Survey came in lighter than expected on Tuesday. The survey showed there were 8.82 million available jobs in July vs 9.46 million expected. That was down from 9.16 million in June and is good news for the Fed’s fight against inflation. Consumer confidence pulled back way more than expected this month as Americans remain worried about high inflation. The Conference Board’s consumer confidence index tumbled nearly 8 points to 106.1 vs 116 expected. Confidence in current economic conditions plunged more than 38 points to 114.8. The six-month expectations index dropped nearly 8 points to 80.2.
Continue Reading -->Coffee With Greta: Waiting On Data
Register now for tomorrow’s free pro trader Q&A on LinkedIn with me and T3 Trading Group’s Patrick Hawe! DJIA Futures: -27 (-0.1%) SPX Futures: -2 (-0.1%) NASDAQ Futures: -17 (-0.1%) Good morning friends! Futures are flat but lower as traders await key economic data later today. Let’s get right to it! Best Buy Beats Expectations, Lowers Outlook Best Buy Inc (BBY) shares are up 2.7% ahead of the open after beating Q2 expectations on the top and bottom line. Here’s how the consumer electronics retailer’s results compared to analysts’ estimates: Adjusted EPS: $1.22 vs $1.06 expected Revenue: $9.58 billion vs $9.52 billion expected Comparable sales fell 6.2% year over year while online sales dropped 7.1%. The CEO said Best Buy expects this year to be the “low point in tech demand” before sales bounce back next year. The company forecast full-year revenue between $43.8 billion and $44.5 billion vs $43.8 billion to $45.2 billion previously. Best Buy expects comparable sales to decline 4.5% to 6% this year vs 3% to 6% previously. Big Lots Surges Big Lots (BIG) shares are surging 14.3% in premarket trade after reporting a narrower than expected Q2 loss. Here’s how the retailer’s results compared to analysts’ estimates: Adjusted loss per share: $3.24 vs $4.11 expected Revenue: $1.14 billion vs $1.1 billion expected Big Lots did not provide a Q3 earnings forecast but said it expects comparable store sales to decline in the low-teen range. The company said that would be “modestly improved” from Q2. The retailer then expects comparable store sales to improve further in Q4. Big Lots’ CEO said, “Our core lower-income customer remains under significant pressure and has limited capacity for higher-ticket discretionary purchases. However, we did see some sequential improvement in the quarter, and were pleased to come in ahead of or in line with our guidance on all key metrics.” Nio’s Q2 Loss Widens Nio (NIO) shares are dropping 6.3% ahead of the open after reporting a widening loss in the second quarter and missing expectations. Here’s how the Chinese electric vehicle makers results compared to analysts’ estimates: Adjusted loss per share: 3.28 yuan vs 2.45 yuan expected Revenue: 8.77 billion yuan vs 9.25 billion yuan expected That loss was more than twice the loss Nio reported a year ago. The company’s gross margin on vehicles rose to 6.2% from 5.1% in Q1 but down from 16.7% a year ago. Nio delivered just 23,520 vehicles in Q2 as it sold down the last of its outgoing models. Since then the company has launched two new models and delivered 20,462 vehicles in July alone. The CEO said, “We expect a solid growth in vehicle deliveries in the second half of 2023.” The company forecast Q3 deliveries between 55,000 and 57,000 vehicles. Coming Up: JOLTS, Consumer Confidence The first piece of this week’s important labor market data is set to be released today. The Labor Department releases its July Job Openings and Labor Turnover Survey (JOLTS) at 10:00 a.m. ET. That report is expected to show the number of available jobs fell to 9.5 million in July from 9.58 million in June. The Conference Board also releases its August consumer confidence index at 10:00 a.m. That survey is expected to slip to 116 from 117 in July.
Continue Reading -->Coffee With Greta: Final Week Of August
Register now for Wednesday’s free pro trader Q&A on LinkedIn with me and T3 Trading Group’s Patrick Hawe! DJIA Futures: +151 (+0.4%) SPX Futures: +19 (+0.4%) NASDAQ Futures: +84 (+0.6%) Good morning friends! Futures are higher as traders gear up for the final week of August. Let’s get right to it! Chinese EV Maker Xpeng Rallies Xpeng Inc (XPEV) shares are up 6.3% ahead of the open after announcing it is buying Chinese ride-hailing company Didi’s smart electric car development business. Xpeng’s shares in Hong Kong jumped 10.9% following the announcement. The deal is an all-stock transaction worth $744 million and Didi will become a strategic shareholder of Xpeng. Xpeng said it plans to develop a new electric car to target the 150,000 yuan ($20,580) price range. The company’s current cars sell for around 200,000 yuan or more. The new car will be part of a new brand under the project name “MONA”. 3M Settles Earplug Lawsuits 3M (MMM) shares are rising 5.6% in premarket trade following a Bloomberg report the company has tentatively agreed to settle over 300,000 lawsuits over its earplugs. The company is expected to pay out more than $5.5 billion over five years under the settlement. 3M’s board of directors still needs to approve the agreement. The suits claim the company sold the U.S. military defective combat earplugs. A 3M representative could not confirm the report, telling Bloomberg the company does not comment on rumor or speculation. Important Data Week It will be another important week of economic data for the Fed as the September 20 rate decision approaches. This week is focused on the labor market and inflation. Here’s the schedule: Tuesday: S&P Case-Shiller home price index, JOLTS, consumer confidence Wednesday: ADP private employment report, Q2 GDP revision, pending home sales Thursday: Weekly jobless claims, PCE price index, core PCE price index, personal income, personal spending Friday: August jobs report, unemployment rate, hourly wages, ISM manufacturing PMI, construction spending CME Group’s FedWatch Tool still shows 80.5% of traders expecting no rate hike at the September meeting, even after the Fed Chair’s Jackson Hole speech on Friday. In that speech, Powell said inflation “remains too high” and, “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
Continue Reading -->Coffee With Greta: Waiting For Powell
Register now for next week’s free pro trader Q&A on LinkedIn with me and T3 Trading Group’s Patrick Hawe! DJIA Futures: +169 (+0.5%) SPX Futures: +19 (+0.4%) NASDAQ Futures: +50 (+0.3%) Good morning friends! Futures are rising as traders await the Fed Chair’s speech at Jackson Hole. Let’s get right to it! Jackson Hole Fed Chair Jerome Powell is set to deliver the opening speech at the bank’s Jackson Hole Symposium today. The market is closely watching this speech for clues about the Fed’s future plans for interest rates. In his speech last year, Powell warned economic “pain” was ahead for U.S. households as the bank continued to tighten. His speech will begin just after 10:00 a.m. ET. Nordstrom Slips Nordstrom (JNW) shares are down 1.3% ahead of the open after beating Q2 expectations but maintaining its full-year outlook. Here’s how the department store’s results compared to analysts’ estimates: EPS: $0.84 vs $0.44 expected Revenue: $3.77 billion vs $3.65 billion expected Total revenue dropped 8% year over year with digital sales tumbling 13%. But the CEO said Nordstrom Rack sales have been on “a steady upward trajectory throughout this year.” Nordstrom still expects revenue to fall between 4% and 6% this fiscal year with adjusted EPS between $1.80 and $2.20. Gap Rises After Mixed Results Gap Inc (GPS) shares are rising 1.7% in premarket trade after reporting mixed Q2 results. Here’s how the clothing retailer’s results compared to analysts’ estimates: Adjusted EPS: $0.34 vs $0.09 expected Revenue: $3.55 billion vs $3.57 billion expected Gap’s total sales dropped 8% year over year with same-store sales falling 6% vs a 4.4% decline expected. Gap’s namesake sales fell 14%, Banana Republic sales were down 11%, Old Navy sales declined 6%, and Athleta sales fell 1%. The company expects Q3 net sales to decrease year over year in the low double-digit range vs analysts’ expectations for a 6.8% decline. Affirm Pops On Earnings Beat Affirm (AFRM) shares are up 6.1% ahead of the open after beating fiscal Q4 expectations. Here’s how the buy-now pay-later company’s results compared to analysts’ estimates: Loss per share: $0.69 vs $0.85 expected Revenue: $446 million vs $406 million expected Revenue jumped 22% year over year. Affirm’s funding capacity increased by $300 million from the previous quarter and the company said the share of credit overdue by 30 days fell by 0.3% to 2.3%. The company forecast fiscal Q1 revenue between $430 million and $455 million. AMC Braces For Stock Conversion AMC Entertainment (AMC) shares are up 0.8% in premarket trade ahead of the anticipated stock conversion at the open. The gains come after AMC tumbled 26.7% on Thursday. The company’s preferred equity units or APE shares are set to be converted into common stock at the open. AMC is also planning a 10-to-1 reverse stock split next week. After the conversion and split, the company’s authorized share count will increase to 550 million from 52.5 million.
Continue Reading -->Coffee With Greta: Another NVDA Blowout
Register now for next week’s free pro trader Q&A on LinkedIn with me and T3 Trading Group’s Patrick Hawe! DJIA Futures: -31 (-0.1%) SPX Futures: +22 (+0.5%) NASDAQ Futures: +155 (+1.0%) Good morning friends! Futures are mixed with tech stocks rising after Nvidia’s blowout earnings report. Let’s get right to it! Nvidia Blows Out Expectations Nvidia (NVDA) shares are rallying 6.3% ahead of the open after crushing Q2 expectations and issuing blowout guidance. Here’s how the chipmaker’s results compared to analysts’ estimates: Adjusted EPS: $2.70 vs $2.09 expected Revenue: $13.51 billion vs $11.22 billion expected Revenue doubled from a year ago and surged 88% from Q1. Nvidia cited strong demand for AI chips for that growth. The CEO said, “The world has something along the lines of about a trillion dollars worth of data centers installed, in the cloud, enterprise and otherwise. That trillion dollars of data centers is in the process of transitioning into accelerated computing and generative AI.” The CFO said Nvidia would not be immediately impacted by the Biden administration’s proposed chip export restrictions. The chipmaker forecast Q3 revenue of $16 billion, beating expectations for $12.61 billion and implying 170% year over year growth. The beat is boosting other stocks across the sector with the VanEck Semiconductor ETF (SMH) up 2.6%. Dollar Tree Slips On Weak Guidance Dollar Tree (DLTR) shares are falling 7.0% in premarket trade after beating Q2 sales expectations but issuing weak guidance. Here’s how the discount retailer’s results compared to analysts’ estimates: EPS: $0.91 vs $0.87 expected Revenue: $7.32 billion vs $7.2 billion expected Dollar Tree said its expects between $0.94 and $1.04 in Q3 EPS, missing analysts’ expectations for $1.27. The company also lowered its full-year EPS forecast to between $5.78 and $6.18 vs $5.73 to $6.13 previously. Boeing Finds New 737 Max Defect Boeing (BA) shares are dropping 2.6% ahead of the open after revealing a new manufacturing defect with the 737 Max. The plane maker said the fastener holes on the after pressure bulkhead on some 737 planes were improperly drilled. The issue is not related to flight safety but will delay the delivery of dozens of 737 Max planes. Boeing said, “This issue will impact near-term 737 deliveries as we conduct inspections to determine the number of airplanes affected, and complete required rework on those airplanes.” Spirit AeroSystems (SPR), which manufactures the Max fuselage, said only some units are affected because it “uses multiple suppliers for the aft pressure bulkhead.” Spirit AeroSystems said, “We are working closely with our customer to address any impacted units within the production system and address any needed rework. Based upon what we know now, we believe there will not be a material impact to our delivery range for the year related to this issue.” Weekly Jobless Claims Drop Weekly jobless claims fell more than expected last week in the latest sign of strength in the labor market. The Labor Department reported 230,000 Americans filed initial claims for unemployment benefits last week. That was down by 10,000 from the week before and lower than 240,000 expected. Continuing claims fell by 9,000 to 1.70 million in the week ending August 12. In Case You Missed It New home sales jumped more than expected in July as buyers continue turning to new builds amid a shortage of existing homes for sale. The Census Bureau reported new sales rose 4.4% monthly to a seasonally adjusted annual rate of 714,000 vs 704,000 expected. New home sales surged 31.5% year over year to the highest level since February 2022.
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