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Economic Data Deluge

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Following Friday’s big 3.2% growth number in Q1 GDP, this morning’s data brings up back down to earth: Personal Income and Consumer Spending figures for March were mixed this Monday, with income cooler than expected but spending slightly higher than estimates.

Personal Income’s headline number was +0.1% for last month, notably short of the +0.4% consensus estimate and half of the previous month’s +0.2% read. This demonstrates that, even with quarterly GDP up over 3%, individuals aren’t really seeing this reflected in their paychecks. The number is still a positive one, but just barely.

Consumer Spending at +0.9%, on the other hand, beat estimates by 10 basis points and well ahead of the previous read (from January) of +0.1% spending growth. That last figure came on the heels of a market meltdown from last December; these days, the consumer is feeling stronger and spending more, even if they may not be earning much more.

Stripping out volatile measures to give a smoother impression of inflation, this morning’s “core” number year over year underperformed at +1.6% — not only just half of what Q1 GDP’s number came in at, but down from expectations (including the Fed’s 2% inflation target), as well. Personal Income for the year also missed estimates: +1.5% year over year.

After today’s closing bell, we expect the latest FAANG corporation to report earnings: Alphabet, Inc. (GOOGL - Free Report) . The search-leading conglomerate is expected to bring $10.57 per share on $29.99 billion in quarterly sales, up 6.45% and 20.64%, respectively. The Google parent has beaten estimates in each of the past 4 quarters by an average of 17.8%. Coming into the report, the company has a Zacks Rank #3 (Hold) rating and a Style Score (Value, Growth, Momentum) of B.

Tomorrow afternoon brings us the last of the FAANG companies to report: Apple Inc. (AAPL - Free Report) . The iPhone giant is expecting to bring $2.37 per share on $57.54 billion in revenues for the quarter. These numbers are down year over year, by 13.2% and 5.88%, respectively. Apple is also rated a Zacks Rank #3, with a Style Score of D.


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