Tuesday, February 28, 2017The first read on Q4 2016 Gross Domestic Product was +1.9%, and analysts had been hopeful that a second read would push us above 2% growth for the final quarter of last year. The numbers have yet to bear this out: we’re still at 1.9% on this second (of three) reports. Full-year 2016 GDP growth reached a paltry 1.6%, its worst performance in five years.
The biggest weakness appears to have been in business investing in Q4, where the revision tumbled more than a full percentage point. Housing revenue was also down from the initial take in the quarter. Consumer spending rose to 3.0%, 50 basis points higher than the last read. Government spending on the state and local level was revised down from the initial figure — in fact, it was cut in half: from 2.6% last time to 1.3% today.
We also see new figures on the January trade balance, which has unexpectedly swelled to a $69.2 billion deficit from -$64.4 billion in December. This is quite a bit higher than the roughly -$66 billion expected by analysts. Exports month over month fell -$300K but are up $8.9 million from January 2016. Imports were +$2.3 billion from December and +$8.9 billion year over year. This is also the highest trade deficit in nearly two years.
And the Case-Shiller housing index for December shows 5.8% growth in the domestic housing market. This is now relatively old news, but historically represents the most accurate read on U.S. housing. A nice, healthy number likes this provides solid terra firma for the market going forward.
This evening, President Trump will address Congress to discuss his plan to enact economic proposals. Much of the market’s attitude this time tomorrow will reflect how it absorbs what Trump will have to say, and there are a plethora of important topics that promise a drastic break from the Obama administration: healthcare reform, infrastructure spending, military buildup and many other heavy lifting will be brought to the Capitol floor for the first time in Trump’s administration.
The Dow is “unched” head of today’s opening bell, following a successful run-up of 12 straight positive trading on the blue-chip index. Two more and it’s the all-time Dow winning streak. Three more and it gets a free sub sandwich.
Mark Vickery
Senior Editor
Click here to follow this author>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Tuesday, February 28, 2017
The first read on Q4 2016 Gross Domestic Product was +1.9%, and analysts had been hopeful that a second read would push us above 2% growth for the final quarter of last year. The numbers have yet to bear this out: we’re still at 1.9% on this second (of three) reports. Full-year 2016 GDP growth reached a paltry 1.6%, its worst performance in five years.
The biggest weakness appears to have been in business investing in Q4, where the revision tumbled more than a full percentage point. Housing revenue was also down from the initial take in the quarter. Consumer spending rose to 3.0%, 50 basis points higher than the last read. Government spending on the state and local level was revised down from the initial figure — in fact, it was cut in half: from 2.6% last time to 1.3% today.
We also see new figures on the January trade balance, which has unexpectedly swelled to a $69.2 billion deficit from -$64.4 billion in December. This is quite a bit higher than the roughly -$66 billion expected by analysts. Exports month over month fell -$300K but are up $8.9 million from January 2016. Imports were +$2.3 billion from December and +$8.9 billion year over year. This is also the highest trade deficit in nearly two years.
And the Case-Shiller housing index for December shows 5.8% growth in the domestic housing market. This is now relatively old news, but historically represents the most accurate read on U.S. housing. A nice, healthy number likes this provides solid terra firma for the market going forward.
This evening, President Trump will address Congress to discuss his plan to enact economic proposals. Much of the market’s attitude this time tomorrow will reflect how it absorbs what Trump will have to say, and there are a plethora of important topics that promise a drastic break from the Obama administration: healthcare reform, infrastructure spending, military buildup and many other heavy lifting will be brought to the Capitol floor for the first time in Trump’s administration.
The Dow is “unched” head of today’s opening bell, following a successful run-up of 12 straight positive trading on the blue-chip index. Two more and it’s the all-time Dow winning streak. Three more and it gets a free sub sandwich.
Mark Vickery
Senior Editor
Click here to follow this author>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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