We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The second and final revision to Q4 2023 Gross Domestic Product (GDP) came out this morning, jumping 20 basis points (bps) from the prior read to +3.4%. Expectations were for the previous +3.2% to stand pat, but alas — the economy in the last quarter of last year was too strong. Still, this is a big come-down from the previous quarter: Q323 came in at +4.9%. By comparison, the final quarter’s GDP ahead of the Covid pandemic — Q4 2019 — was a relatively minor +2.6%.
The figure for quarterly Consumption came up 30 bps from the last look, to +3.3%. The Price Index, on the other hand, was quite consistent: +1.6%, which was expected and also the number that came in for the prior print. The PCE Price Index quarter-over-quarter reached +2.0% from +2.1% on the last look. These numbers from the U.S. Bureau of Economic Analysis (BEA), which is currently preparing the full Personal Consumption Expenditures (PCE) report to be released Friday morning.
Elsewhere, like any normal Thursday, Initial Jobless Claims once again came in lower than expected: 210K last week, 2000 fewer than the upwardly revised 212K reported for the previous week. These weekly numbers have not been higher than 220K since the last full week in January. A stronger-than-expected labor force — no doubt assisted by an historically high influx of immigrants to this country in recent months — has kept the labor market taut, at least on the jobless claims side.
Continuing Claims, reported a week in arrears from new jobless claims, jumped to 1.819 million from a downwardly revised 1.795 million the prior week. This is the highest weekly figure since mid-January, which was the last time longer-term jobless claims breached 1.82 million. Our highs over the past year were from November of last year — 1.93 million — which, still at sub-2 million, remain consistent with a healthy domestic workforce. The last time we were above 2 million longer-term claims was also in November… of 2021.
Overall, we certainly could be doing worse than having stronger-than-expected GDP and lower-than-expected jobless claims, but as any market participant from the past couple years should be aware, pre-market trading dislikes it. Trading levels went from +65 points on the Dow, +8 on the S&P 500 and +23 points on the Nasdaq to +38 on the Dow, +1 on the S&P and -20 points on the Nasdaq a half hour before today’s opening bell. Strong economic figures like these may cause the Fed to wait even longer before lowering interest rates from their 5.25-5.50% highs, where they’ve been since last summer and not this high since January of 2001.
That said, being the last trading day of the calendar quarter (tomorrow’s markets are closed in observance of Good Friday), we may have expected a bit of a profit-booking day anyhow. The S&P closed at a fresh all-time high Wednesday afternoon, reaching 5300 for the first time in history, at +10% from the start of the year. Bond yields remain relatively well behaved: still with a 40 bps inversion, but at 4.22% on the 10-year and 4.62% on the 2-year.
Finally, sentencing for convicted ex-CEO of FTX, Sam Bankman-Fried, is set today in New York City. Estimates are the former crypto magnate defrauded investors out of $10 billion, and sentencing will be anywhere from 11 to 100+ years in prison. This is your friendly reminded that crimes related to crypto trading — even on a massive scale, which can be harder to get one’s legal arms around — do get prosecuted. Look for cryptocurrency values to move up on this news.
We cover more than 1,000 of the most widely followed stocks in our Equity Research Reports. Each report features independent research from our analysts and provides in-depth analysis on a company, its fundamentals and its growth prospects. Quickly access reports for New Upgrades and New Downgrades.
You can also find a report on the ticker of your choice, or access all of the stock reports covered by Zacks analysts.
Early enrollments will drive education loan originations for Sallie Mae, thereby aiding its NII growth. Strategic inorganic growth moves will expand its operations and diversify revenue streams.
Sun Life’s focus to strengthen Asian presence, expanding global asset management business, favourable business mix, strategic acquisitions and solid capital position bodes well for growth.
With a solid portfolio of upscale hotels across lucrative markets, Host Hotels will likely witness RevPAR growth. Also, strategic capital-recycling program and a healthy balance sheet augur well.
We remain concerned about risks associated with competition in the auto chip space. Also, sluggishness in the embedded processing unit, uncertain macro environment and high debt level remain concerns.
Low demand in China and the ongoing weakness in the European tower crane market remains a headwind for Manitowoc. In addition, elevated input and labor costs will likely continue to hurt its margins
National Steel’s results will be impacted by volatile iron ore prices and higher costs for raw materials and fuel until the situation stabilizes. Its high-debt levels add to the concerns.
The impressive Disney+ user growth rate driven by expanding international footprint and solid content portfolio should be the key performance driver for Disney.
Google has shown good execution to date. Its dominant search market share is a positive. Its expanding cloud footprint and strengthening presence in the smart home market remain noteworthy.
Higher rates, decent loan demand, efforts to improve revenues and expansion into new markets will likely aid Bank of America. Technological advancement will keep aiding cross-selling opportunities.
Long-term prospects of global services unit, improving air passenger traffic as well as increasing fiscal defense budget are expected to boost Boeing's growth
AT&T is witnessing early momentum in its core market areas driven by strength in 5G and fiber, as it aims to better harness edge computing capabilities with core business focus.