Back to top

Ahead of Wall Street

Thursday, March 30, 2017

Ahead of the bell this morning — and a day before the final day of calendar Q1 — we see the final revision to Q4 Gross Domestic Product (GDP), as well as our weekly read of Initial Jobless Claims. Both were higher than expected: GDP rose 0.2% from the last read, and jobless claims stayed above our trailing average and came in at 258K.

GDP for the last quarter in 2016 has at last pushed past the 2% threshold, coming in at 2.1%. Stronger than the 1.9% in the second read, this is still representative of a sluggish economy chugging along in lieu of new economic imperatives — such as those proposed by President Trump’s campaign, which are still on a mission toward passage at some point in the future.

Initial Jobless Claims stated above the 225-250K range we’d “enjoyed” over the past couple months, coming in higher than expectations at 258K. Analysts had been looking for a fall back to within that range at 247K. Some of this may be explained by more out-of-work citizens actively looking for employment — though this will be clearer when we see the new BLS non-farm payroll report a week from tomorrow — but otherwise it must be chalked up to a lag in new employment in the early months of the year, which is common.

The 4-week moving average on jobless claims has also drifted above the (psychologically pleasing but otherwise less important) 250K for the week. Continuing claims bumped up on the week from a roughly even 2 million to 2.1 million this week. These are mild negatives for the U.S. labor market, but still in overall positive territory regarding the overall domestic economy.

Futures are down just slightly ahead of today’s opening bell: -1 on the S&P 500, -4 on the Dow and -1.5 on the Nasdaq. A deep drop in shares of Lululemon LULU are down more than 21% following a weak forward guidance for the specialty retailer.

Mark Vickery
Senior Editor

Questions or comments about this article and/or its author" Click here>>

Stocks On The Move

Company Symbol Price $Change %Change
Performant Financial Corporation PFMT 2.67 0.26 10.79
PC-Tel, Inc. PCTI 6.89 0.64 10.18
Heska Corporation HSKA 103.89 8.13 8.48
Axcelis Technologies, Inc. ACLS 17.85 1.15 6.89
Papa Murphy's Holdings, Inc. FRSH 4.50 0.27 6.38

Stocks Research Reports

Upgrades

Company Name Symbol Report
Kratos Defen.. KTOS View Snapshot Report
Olympic Stee.. ZEUS View Snapshot Report
Zoe's Kitche.. ZOES View Snapshot Report
Zosano Pharm.. ZSAN View Snapshot Report
ZTO EXPRESS .. ZTO View Snapshot Report

Downgrades

Company Name Symbol Report
Kratos Defen.. KTOS View Snapshot Report
Olympic Stee.. ZEUS View Snapshot Report
Zoe's Kitche.. ZOES View Snapshot Report
Zosano Pharm.. ZSAN View Snapshot Report
ZTO EXPRESS .. ZTO View Snapshot Report

Updates

Company Name Symbol Industry Name Report
1800FLOWERS... FLWS Retail - Mai.. View Snapshot Report
1ST CONSTIT .. FCCY Banks - Nort.. View Snapshot Report
21VIANET GP-.. VNET Internet - S.. View Snapshot Report
22ND CENTURY.. XXII Tobacco View Snapshot Report
2U INC TWOU Internet - S.. View Snapshot Report

Earnings and Economic News

Key Earnings Reports For Mar 30, 2017

Economic Event Reported
(+) Treasury notes (10 yr) - Mar 30, 2017 4:15 PM Eastern Time
(+) Federal Funds Rate - Mar 30, 2017 4:15 PM Eastern Time
(+) Treasury bills (3 mth) - Mar 30, 2017 4:15 PM Eastern Time
(+) Chain Deflator- Third Estimate - Mar 30, 2017 --
(+) GDP Third Estimate - Mar 30, 2017 --
(+) Corporate Profits (Rev) - Mar 30, 2017 --
(+) Current Production Cash Flow (Rev) - Mar 30, 2017 --
(+) GNP - Mar 30, 2017 --
(+) Initial Claims - Mar 30, 2017 --
(+) Imports - Mar 30, 2017 --
(+) Exports - Mar 30, 2017 --
(+) Bloomberg Consumer Comfort Index - Mar 30, 2017 --
(+) Disposable Personal Income - Mar 30, 2017 --