The Daily Chase: U.S. futures sink as key inflation data looms; Lululemon revises Q4 outlook

U.S. futures are lower this morning as investors await key inflation data and the start of earnings season later this week.

U.S. futures are lower this morning as investors await key inflation data and the start of earnings season later this week. The markets were rattled by the prospect of the U.S. Federal Reserve raising interest rates quicker than expected, which saw the 10-year Treasury yield top 1.8 per cent on Friday before steadying around 1.7 per cent. Goldman Sachs has said it now expects the U.S. central bank to raise interest rates four times this year and begin its balance sheet runoff process in July. 

LULULEMON REVISES Q4 OUTLOOK, SHARES SLIDE

Shares of Lululemon are trading lower in the pre-market. That’s after the company revised its fourth-quarter sales and profit expectations to come in on the lower end of its guidance range. It is blaming the ongoing pandemic and recent surge in the omicron variant for affecting staffing levels in certain locations.

REMEMBERING LINAMAR FOUNDER FRANK HASENFRATZ

Frank Hasenfratz, Linamar’s founder and executive chairman, died on Saturday at the age of 86. He started the auto-parts maker in his garage and built it into a $5-billion company. In a release issued on the weekend, his daughter and the company’s CEO Linda Hasenfratz said, “It was his vision and unrelenting drive that enabled us to build the company that Linamar is today. He leaves a tremendous legacy on the Canadian business landscape, changed the lives of so many, and provided careers, livelihoods and opportunities for thousands of people.” It was also noted that the board of directors has a succession and renewal plan in place, which will be made public in the coming weeks.

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