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Pre-Markets Lower; New Home Sales, Micron Earnings Today
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Wednesday, June 26th, 2024
Pre-market futures started out mixed, but have now sunk into the red. The Dow looks to open down -115 points at this hour, with the Nasdaq -45 and the S&P 500 -14 points a half-hour in front of today’s opening bell. As it happens, we’re limping toward the end of calendar Q2 on seasonally low volume and with nearly all the important economic data points for the month already having been released.
This changes Friday, of course. That’s when we see Personal Consumption Expenditures (PCE) for May hit the tape. These are numbers we are definitely looking forward to, as well, as other economic data which feeds into PCE are mostly all pointing into a gently weaker direction, consistent with the “soft landing” the Fed has been attempting to conduct for the past year and a half. And at +2.6% expected on year-over-year headline and core PCE, we would see that agreeable pullback toward optimal +2% inflation.
Will it be enough for the Fed to cut rates in July? That’s the big question. As of now, it’s also still slightly off what we perceive to be the Fed radar, based on what various presidents and governors of the monetary policy body have been saying in public as of late. But at +5.25-5.50% on the Fed funds rate for now nearly a full year, and with inflation metrics moving down with more or less consistency, it shouldn’t take too many low PCE numbers before the Fed finds wisdom in taking rates down 25 (or 50!) basis points (bps).
Ahead of today’s open, General Mills (GIS - Free Report) reported fiscal Q4 results. Earnings of $1.01 per share outpaced the Zacks consensus by 2 cents, marking the Minneapolis-based marketed food products giant’s 10th straight quarterly earnings beat. Revenues, however, came in -3.27% from expectations this morning, to $4.71 billion (and below the $5.03 billion reported in the year-ago quarter). Shares are trading down -5% in today’s pre-market, swinging its year-to-date earnings into negative territory. For more on GIS’ earnings, click here.
Once today’s normal trading session is underway, New Home Sales for May are out. Expectations are for month-over-month growth to 640K seasonally adjusted, annualized units from 634K reported a month ago. Its sister report, Pending Home Sales, comes out tomorrow during normal trading hours, and expected to improve from a -7.7% reported last month to -0.4%. The delicate balance between pent-up demand and sticky-high mortgage rates will be under a magnifying glass for these two housing prints.
After today’s close, Micron (MU - Free Report) reports fiscal Q3 earnings. Followers of the A.I. trade already know the market expands past NVIDIA (NVDA - Free Report) , and in Micron’s case, the Zacks consensus calls for +135% earnings growth from a year ago on +78% gains on the sales side. Micron swung to a big positive earnings figure a quarter ago, and the chip-maker is looking for its fifth-straight earnings beat. The company carries a Zacks Rank #2 (Buy) with a Style Score of C into its latest earnings report.
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Pre-Markets Lower; New Home Sales, Micron Earnings Today
Wednesday, June 26th, 2024
Pre-market futures started out mixed, but have now sunk into the red. The Dow looks to open down -115 points at this hour, with the Nasdaq -45 and the S&P 500 -14 points a half-hour in front of today’s opening bell. As it happens, we’re limping toward the end of calendar Q2 on seasonally low volume and with nearly all the important economic data points for the month already having been released.
This changes Friday, of course. That’s when we see Personal Consumption Expenditures (PCE) for May hit the tape. These are numbers we are definitely looking forward to, as well, as other economic data which feeds into PCE are mostly all pointing into a gently weaker direction, consistent with the “soft landing” the Fed has been attempting to conduct for the past year and a half. And at +2.6% expected on year-over-year headline and core PCE, we would see that agreeable pullback toward optimal +2% inflation.
Will it be enough for the Fed to cut rates in July? That’s the big question. As of now, it’s also still slightly off what we perceive to be the Fed radar, based on what various presidents and governors of the monetary policy body have been saying in public as of late. But at +5.25-5.50% on the Fed funds rate for now nearly a full year, and with inflation metrics moving down with more or less consistency, it shouldn’t take too many low PCE numbers before the Fed finds wisdom in taking rates down 25 (or 50!) basis points (bps).
Ahead of today’s open, General Mills (GIS - Free Report) reported fiscal Q4 results. Earnings of $1.01 per share outpaced the Zacks consensus by 2 cents, marking the Minneapolis-based marketed food products giant’s 10th straight quarterly earnings beat. Revenues, however, came in -3.27% from expectations this morning, to $4.71 billion (and below the $5.03 billion reported in the year-ago quarter). Shares are trading down -5% in today’s pre-market, swinging its year-to-date earnings into negative territory. For more on GIS’ earnings, click here.
Once today’s normal trading session is underway, New Home Sales for May are out. Expectations are for month-over-month growth to 640K seasonally adjusted, annualized units from 634K reported a month ago. Its sister report, Pending Home Sales, comes out tomorrow during normal trading hours, and expected to improve from a -7.7% reported last month to -0.4%. The delicate balance between pent-up demand and sticky-high mortgage rates will be under a magnifying glass for these two housing prints.
After today’s close, Micron (MU - Free Report) reports fiscal Q3 earnings. Followers of the A.I. trade already know the market expands past NVIDIA (NVDA - Free Report) , and in Micron’s case, the Zacks consensus calls for +135% earnings growth from a year ago on +78% gains on the sales side. Micron swung to a big positive earnings figure a quarter ago, and the chip-maker is looking for its fifth-straight earnings beat. The company carries a Zacks Rank #2 (Buy) with a Style Score of C into its latest earnings report.
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