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Economic Data and Q2 Earnings Foster 3rd Straight Up-Day
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We saw three separate alerts on the American economy this morning — Case-Shiller Home Prices for June, JOLTS for July and Consumer Confidence in August — and they do manage to tell a story. Lucky for us the story’s not too scary; markets managed their third-straight trading day in the green by today’s closing bell: the Dow was up +283 points, +0.82%; the Nasdaq led the way, +238 points, +1.74%; while the S&P 500 and Russell 2000 gained +1.45% and +1.41% on the session, respectively.
Case-Shiller results were better than expected, with the 20-city survey coming in at -1.2% from -1.5% anticipated, and up from an unrevised -1.7% the previous month. The 10-city reached -0.5% on headline, better than the -1.1% reported the prior month. The recent trend that sees the Midwest lead the way in housing price increases — Chicago led at +4.2% and Cleveland was right behind, at +4.1% — continues in this report, which is now nearly three months in arrears. The worst-performing segment was the strongest a year or so ago: the West, -5.9%. San Francisco at -9.7% and Seattle at -8.8% were the worst-performing cities for the month.
Also, the Job Openings and Labor Turnover Survey (JOLTS) came in notably lower month-over-month — 8.8 million from the 9.5 million anticipated and the 9.58 million reported the previous quarter. Considering that, back in early 2022, we were seeing JOLTS headlines near 12 million openings, we can see the labor market tightening notably. Professional & Business Services shed the most positions, -198K for the month, with Information sector placements +101K and Transportation/Warehouse/Utilities at +75K. Job quits came down to 3.5 million overall, with the biggest loss in accommodation/food service, at -166K.
Consumer Confidence for August took a deeper-than-expected downturn in its latest report earlier today, with a headline print of 106.1 well off the projected 116.0, and notably lower than the downwardly revised 114.8 the previous month. Clear curtailing of spending on non-essential items and services is being felt in this report, with presumably still-higher-than-optimum inflation and higher interest rates playing a part in consumers losing some of their appetite.
Hewlett-Packard Enterprises (HPE - Free Report) beat fiscal Q3 expectations this afternoon, as the business-oriented hardware and services company came in 3 cents per share ahead of estimates on its bottom line, to 49 cents per share, on revenues of $7.00 billion, which narrowly outpaced the $6.98 billion expected. The original Hewlett-Packard (HPQ - Free Report) just met earnings estimates at 86 cents per share, while revenues of $13.2 billion came in slightly below the $13.36 billion expected. HPW keeps its three-straight earnings-beat quarters alive, while H-P sees its three-quarter winning streak end. Guidance for both companies are more or less in line with current estimates.
Apparel major PVH (PVH - Free Report) beat expectations on both top and bottom lines this afternoon, with earnings of $1.98 per share taking out the $1.75 expected (though still below the $2.08 per share in the year-ago quarter) on quarterly revenues of $2.21 billion, beyond the $2.19 billion in the Zacks consensus. Direct-to-Consumer grew +11% in the quarter, and the parent company of Tommy Hilfiger, Calvin Klein and many more is seeing shares gain +2.7% in late trading today. Shares are up more than +13% year to date.
Tomorrow morning, Automatic Data Processing (ADP - Free Report) comes out with its monthly private-sector jobs totals. Analyst expect around 200K new positions filled for the month of August, below the 324K reported the previous month — which itself represented the second-straight major upside surprise in private-sector job growth. Also, the first revision to Q2 GDP comes out, expected in-line with the +2.4% initially reported. Advance Retail and Wholesale Inventories and Pending Home Sales round out the day’s economic data.
Image: Bigstock
Economic Data and Q2 Earnings Foster 3rd Straight Up-Day
We saw three separate alerts on the American economy this morning — Case-Shiller Home Prices for June, JOLTS for July and Consumer Confidence in August — and they do manage to tell a story. Lucky for us the story’s not too scary; markets managed their third-straight trading day in the green by today’s closing bell: the Dow was up +283 points, +0.82%; the Nasdaq led the way, +238 points, +1.74%; while the S&P 500 and Russell 2000 gained +1.45% and +1.41% on the session, respectively.
Case-Shiller results were better than expected, with the 20-city survey coming in at -1.2% from -1.5% anticipated, and up from an unrevised -1.7% the previous month. The 10-city reached -0.5% on headline, better than the -1.1% reported the prior month. The recent trend that sees the Midwest lead the way in housing price increases — Chicago led at +4.2% and Cleveland was right behind, at +4.1% — continues in this report, which is now nearly three months in arrears. The worst-performing segment was the strongest a year or so ago: the West, -5.9%. San Francisco at -9.7% and Seattle at -8.8% were the worst-performing cities for the month.
Also, the Job Openings and Labor Turnover Survey (JOLTS) came in notably lower month-over-month — 8.8 million from the 9.5 million anticipated and the 9.58 million reported the previous quarter. Considering that, back in early 2022, we were seeing JOLTS headlines near 12 million openings, we can see the labor market tightening notably. Professional & Business Services shed the most positions, -198K for the month, with Information sector placements +101K and Transportation/Warehouse/Utilities at +75K. Job quits came down to 3.5 million overall, with the biggest loss in accommodation/food service, at -166K.
Consumer Confidence for August took a deeper-than-expected downturn in its latest report earlier today, with a headline print of 106.1 well off the projected 116.0, and notably lower than the downwardly revised 114.8 the previous month. Clear curtailing of spending on non-essential items and services is being felt in this report, with presumably still-higher-than-optimum inflation and higher interest rates playing a part in consumers losing some of their appetite.
Hewlett-Packard Enterprises (HPE - Free Report) beat fiscal Q3 expectations this afternoon, as the business-oriented hardware and services company came in 3 cents per share ahead of estimates on its bottom line, to 49 cents per share, on revenues of $7.00 billion, which narrowly outpaced the $6.98 billion expected. The original Hewlett-Packard (HPQ - Free Report) just met earnings estimates at 86 cents per share, while revenues of $13.2 billion came in slightly below the $13.36 billion expected. HPW keeps its three-straight earnings-beat quarters alive, while H-P sees its three-quarter winning streak end. Guidance for both companies are more or less in line with current estimates.
Apparel major PVH (PVH - Free Report) beat expectations on both top and bottom lines this afternoon, with earnings of $1.98 per share taking out the $1.75 expected (though still below the $2.08 per share in the year-ago quarter) on quarterly revenues of $2.21 billion, beyond the $2.19 billion in the Zacks consensus. Direct-to-Consumer grew +11% in the quarter, and the parent company of Tommy Hilfiger, Calvin Klein and many more is seeing shares gain +2.7% in late trading today. Shares are up more than +13% year to date.
Tomorrow morning, Automatic Data Processing (ADP - Free Report) comes out with its monthly private-sector jobs totals. Analyst expect around 200K new positions filled for the month of August, below the 324K reported the previous month — which itself represented the second-straight major upside surprise in private-sector job growth. Also, the first revision to Q2 GDP comes out, expected in-line with the +2.4% initially reported. Advance Retail and Wholesale Inventories and Pending Home Sales round out the day’s economic data.
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