Here are five things you need to know for Friday June 10th:
1st – Stock futures edge lower with inflation in focus
US stock futures traded mixed on Friday after a late Wall Street sell-off, falling more than 600 points against the Dow as investors waited for a critical reading of May inflation before trading resumed.
According to consensus forecasts for Friday’s all-important CPI reading, pressures on key consumer prices are expected to return to multi-decade highs, but the ongoing rally in oil and energy prices expects the annualized pace of headline inflation to remain around 8.3 percent . The chances are good. ,
The data will provide details on the pressures not only on US consumers – whose spending accounts for nearly two-thirds of the world’s largest economy – but also on the short-term response of the Federal Reserve, tasked with curbing inflation. The task has been assigned. Close to your preferred 2% target with rate hikes and liquidity falls.
And while a 50 basis point hike by the Fed next week is a virtual freeze, CME Group’s FedWatch tool now gives a 18% chance of a 75 basis point rate hike in July, up from just 10% a month ago. Part of the move is tied to the European Central Bank’s recent outcry and bets that Christine Lagarde and her colleagues will hike rates this summer, with a deeper hike in the fall when inflation hits record highs in the single-currency sector. On ranges.
Growth prospects from rising inflation are also in focus, and while Janet Yellen pointed out in last night’s New York Times Deal Book event that “there is nothing to suggest a recession is in the works,” the US economy is Atlanta shrunk sharply in the first quarter and is now only expanding by 0.9% according to the Fed’s forecasting tool GDPNow.
Despite all this, European and Asian stocks fell sharply on Friday, although data from China’s 14-month low in the country’s PPI offered some relief for world stocks. The regional Stoxx 600 was down 1.4% in early Frankfurt trade after Asian benchmark MSCI ex-Japan fell 0.88%.
In the US, the benchmark 10-year Treasury yield fell to 3.03% and the dollar index rose 0.1% to 103.301 in early European trade against a basket of six global currencies.
On Wall Street, futures linked to the Dow Jones Industrial Average show a 50-point drop from the opening bell, while futures linked to the S&P 500 indicate a 1.5-point drop. A 20 point opening bell win is visible in Nasdaq futures.
2. — The extreme inflation debate cannot be settled in complex CPI data
US headline inflation is likely to approach a four-decade high of 8.3% last month, but the continued rise in global energy prices is likely to test the theory of “peak inflation,” economists predict for Friday’s CPI reading Department of Commerce. ready for. summer months.
Record high gasoline prices, hitting nearly $5 a gallon last night, will continue to drive headline inflation rates as crude oil prices surge above $120 a barrel, while food prices continue to drive headline inflation, according to AAA data. Extends its recent run—amid hauling snares and uneven planting times.
However, moderate wage growth and easier year-on-year price comparisons for items such as used cars will help offset the pick-up in core inflation as jobless claims rise and businesses grapple with macroeconomic uncertainty. Stop hiring plans.
These competing interests mean that today’s inflation rate – which is expected to show an unchanged headline rate of 8.3% and a slightly lower core rate of 5.9% – will have something for everyone when the Commerce Department It’s 8:30 a.m possible time published.
document mark (Document) – Shares as reported by DocumentSign Inc. fell in premarket trade on Friday after Online Signature Vending Group released lower-than-expected second-quarter earnings and forecast muted sales growth for the remainder of the year.
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DocuSign, which is struggling to keep investor interest as pandemic-era restrictions bring more professionals back into office, earned 38 cents a share in the three months ended April — Street forecasts to miss the GAAP basis by about 8 cents .
Second-quarter revenue was solid at $588.7 million, but the group maintained its full-year revenue estimate in the region of $2.47 billion to $2.48 billion.
“We are confident in our long-term opportunity and our ability to onboard new customers and drive their digital transformation,” CFO Cynthia Geller told investors in a conference call late Thursday. “However, we are not immune to the macro challenges with our customers and peer space.”
“While we’ve made great strides in attracting executives with significant experience at scale, it’s important to recognize that meaningful traction and improved visibility will take several quarters,” he said.
DocuSign shares were down 24.3% in premarket trading, resulting in an opening price of $66.16 each, a move that would extend the stock’s year-over-year decline to about 56.5%.
4th — AMD stocks gain on strong short-term outlook for the chip sector
Modern micro devices (amd) – Shares as reported by Get Advanced Micro Devices Inc. rose in premarket trade after the chipmaker turned bullish during its annual Investor Day presentation.
AMD, which makes chips for the data center, computing and gaming industries, reiterated its 2022 revenue guidance of about $26.3 billion with gross margins in the 54% range. A weak PC chip market should be offset by continued data center gains, CEO Lisa Su said, and plans to deepen cost synergies related to the $35 billion Xilinx acquisition.x2) – Xilinx Inc. is getting reports around $100-$400 million.
The group also sees a much stronger near-term operating margin of about 57%, given the total addressable data center chip market at about $125 billion.
John Vinh, Analyst at KeyBanc Capital Markets said, “AMD’s Analyst Day gave us an update on Intel’s ability to sustain the company’s outsized growth (20%) and stock gains versus Intel, which is ‘overweight’ in the stock , assessed more constructively. “With increased scale and profitability from the Xlinix acquisition and continued focus on the data center, we expect AMD to sustain external growth given secular cloud growth and stock gains.”
AMD shares are up 1.2% in premarket trading, resulting in an opening price of $100.01 each, a move that would still see the stock fall more than 30.5% for the year.
5. – Stitch Fix shares plummet after third-quarter losses and job cuts
stitch fix (SFIX) – Get Stitch Fix Inc. Shares fell sharply in premarket trading after the online fashion retailer reported weaker-than-expected third-quarter sales and announced plans to lay off about 15% of its employees.
Stitch Fix, which announced earlier this year that it would delay the launch of its direct buy platform, said third-quarter sales fell 8% to $493 million, just below Street’s forecasts, and 72. Posted one share stronger than expected loss of st.
Stitch Fix said the restructuring would save between $40 million and $60 million in the next fiscal year, but would ultimately save about $15 million to $20 million from the current quarter’s bottom line.
“We know we are in a difficult macroeconomic period. We also want to ensure that our cost structure and operating model are positioned to allow us to build our future,” Company President Elizabeth Spaulding said in a statement late Thursday. Told investors in a conference call. “And we saw opportunities in a few places where we could centralize and simplify some of our operations. We wanted to know how to position ourselves for profitable growth as we look towards FY23 and beyond. And so the timing was right.”
Stitch Fix shares were down 16.45% in premarket trading, indicating an opening price of $6.50 each.