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Big Morning for Q2 Numbers: GDP +3.3%, Earnings Beats for Retailers
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Thursday, August 28, 2025
Pre-market futures have lots to digest this morning — not only following NVIDIA’s (NVDA - Free Report) strong Q2 results after the closing bell last night (even if they came in slightly below certain lofty expectations), but with both important economic data and Q2 earnings results having been reported. The Dow is +42 points at this moment, the S&P 500 is -1 point and the Nasdaq is -21.
Q2 GDP Improves to +3.3%: Best in Nearly 2 Years
Ahead of today’s opening bell, the first revision of Q2 Gross Domestic Product (GDP) is out, and improves by 30 basis points (bps) from the initial print, +3.3%, and 20 bps above expectations. This new number is the strongest for economic growth since Q3 of 2023. Consumption rose 20 bps to +1.6%, the best quarter since Q4 of last year.
The Pricing Index came in unchanged month over month to +2.0% (the full Personal Consumption Expenditures [PCE] report gets released tomorrow morning), down from +3.8% in Q1 — a very good sign for those looking for cooling inflation. Core Pricing (subtracting volatile food & energy prices) reached +2.5%, 100 bps lower quarter over quarter. Inventories reversed to -3.3% in Q2 from +2.6% in Q1; on Net Trade +5% this quarter, -4.6% last.
The Initial Jobless Claims chart looks downright methodical: after reaching a near-term high of 250K new jobless claims back in the first week of June, we came down six straight weeks to 217K before beginning to bounce around a bit. Last week markets the eighth downward shift in new claims since that time: 229K, just below the 230K expected and the downwardly revised 234K the previous week.
And if you think that’s a modicum of consistency, wait til you get a look at Continuing Claims: 1.954 million is down from the downwardly revised 1.961 million the prior week, and the 12th-straight week at 1.94 million or above without touching the psychologically relevant 2 million longer-term jobless claims. We remain at 3 1/2-year highs on this metric, but have remained remarkably flat over the past three months and counting.
Earnings Roundup This Morning: DG, BBY, DKS & More
Without getting too deep into the retailers having reported earnings results ahead of the bell — there are a lot of them worth discussing — we’ll give a quick overview of some of the main players:
Dollar General (DG - Free Report) shares posted a strong beat on its bottom line — earnings of $1.86 per share versus estimates of $1.56, for a +19.23% positive surprise — while also outperforming on its top line: $10.73 billion, a +0.47% beat. The company also raised guidance, and investors see the shares up another +3% ahead of the open, adding to the company’s +46.7% growth year to date. For more of DG’s earnings, click here.
Best Buy (BBY - Free Report) also outperformed expectations in its Q2 report this morning on both top and bottom lines. Earnings of $1.28 per share surpassed the $1.22 expected for a +4.9% beat, with comps swinging to a positive +1.5% in the quarter from -0.5% anticipated. But an outlook including tariff uncertainty are keeping shares flat ahead of the open; the stock is -12% year to date.
Dick’s Sporting Goods (DKS - Free Report) raised guidance in addition to outpacing estimates on its bottom line, with earnings of $4.38 per share improving over expectations by +2.1% in Q2. The company also raised guidance looking forward, though its Foot Locker acquisition, which missed by a wide margin yesterday, is cooling what otherwise might have been a hotter open.
Burlington Stores (BURL - Free Report) swings to positive stock gains year to date on its +8% jump this morning on better-than-expected Q2 results this morning. Earnings of $1.59 per share shot past the Zacks consensus by +25% this morning, while revenues of $2.71 billion topped expectations by +2.5% for the quarter. For more on BURL’s earnings, click here.
What to Expect from the Stock Market Today
Economic reports are not finished for the day: at 10am ET, Pending Home Sales for July hit the tape. Month over month, expectations are for a bounce-back to +0.3% from -0.8% the prior month. Year over year, we’ll be coming off a -2.8% figure for June, which marked the sixth negative Pending Home Sales print in the past seven months. Last week’s Existing Home Sales outperformed expectations to 4.01 million seasonally adjusted, annualized units.
After today’s close, the cavalcade of Q2 earnings season trots out some of its final major reports. Semiconductor major Marvell Technologies (MRVL - Free Report) , computer manufacturer Dell Technologies (DELL - Free Report) and specialty cosmetics retailer Ulta Beauty (ULTA - Free Report) are among those bigger names reporting this afternoon.
Image: Bigstock
Big Morning for Q2 Numbers: GDP +3.3%, Earnings Beats for Retailers
Thursday, August 28, 2025
Pre-market futures have lots to digest this morning — not only following NVIDIA’s (NVDA - Free Report) strong Q2 results after the closing bell last night (even if they came in slightly below certain lofty expectations), but with both important economic data and Q2 earnings results having been reported. The Dow is +42 points at this moment, the S&P 500 is -1 point and the Nasdaq is -21.
Q2 GDP Improves to +3.3%: Best in Nearly 2 Years
Ahead of today’s opening bell, the first revision of Q2 Gross Domestic Product (GDP) is out, and improves by 30 basis points (bps) from the initial print, +3.3%, and 20 bps above expectations. This new number is the strongest for economic growth since Q3 of 2023. Consumption rose 20 bps to +1.6%, the best quarter since Q4 of last year.
The Pricing Index came in unchanged month over month to +2.0% (the full Personal Consumption Expenditures [PCE] report gets released tomorrow morning), down from +3.8% in Q1 — a very good sign for those looking for cooling inflation. Core Pricing (subtracting volatile food & energy prices) reached +2.5%, 100 bps lower quarter over quarter. Inventories reversed to -3.3% in Q2 from +2.6% in Q1; on Net Trade +5% this quarter, -4.6% last.
Weekly Jobless Claims Stay Rangebound: 229K, 1.954M
The Initial Jobless Claims chart looks downright methodical: after reaching a near-term high of 250K new jobless claims back in the first week of June, we came down six straight weeks to 217K before beginning to bounce around a bit. Last week markets the eighth downward shift in new claims since that time: 229K, just below the 230K expected and the downwardly revised 234K the previous week.
And if you think that’s a modicum of consistency, wait til you get a look at Continuing Claims: 1.954 million is down from the downwardly revised 1.961 million the prior week, and the 12th-straight week at 1.94 million or above without touching the psychologically relevant 2 million longer-term jobless claims. We remain at 3 1/2-year highs on this metric, but have remained remarkably flat over the past three months and counting.
Earnings Roundup This Morning: DG, BBY, DKS & More
Without getting too deep into the retailers having reported earnings results ahead of the bell — there are a lot of them worth discussing — we’ll give a quick overview of some of the main players:
Dollar General (DG - Free Report) shares posted a strong beat on its bottom line — earnings of $1.86 per share versus estimates of $1.56, for a +19.23% positive surprise — while also outperforming on its top line: $10.73 billion, a +0.47% beat. The company also raised guidance, and investors see the shares up another +3% ahead of the open, adding to the company’s +46.7% growth year to date. For more of DG’s earnings, click here.
Best Buy (BBY - Free Report) also outperformed expectations in its Q2 report this morning on both top and bottom lines. Earnings of $1.28 per share surpassed the $1.22 expected for a +4.9% beat, with comps swinging to a positive +1.5% in the quarter from -0.5% anticipated. But an outlook including tariff uncertainty are keeping shares flat ahead of the open; the stock is -12% year to date.
Dick’s Sporting Goods (DKS - Free Report) raised guidance in addition to outpacing estimates on its bottom line, with earnings of $4.38 per share improving over expectations by +2.1% in Q2. The company also raised guidance looking forward, though its Foot Locker acquisition, which missed by a wide margin yesterday, is cooling what otherwise might have been a hotter open.
Burlington Stores (BURL - Free Report) swings to positive stock gains year to date on its +8% jump this morning on better-than-expected Q2 results this morning. Earnings of $1.59 per share shot past the Zacks consensus by +25% this morning, while revenues of $2.71 billion topped expectations by +2.5% for the quarter. For more on BURL’s earnings, click here.
What to Expect from the Stock Market Today
Economic reports are not finished for the day: at 10am ET, Pending Home Sales for July hit the tape. Month over month, expectations are for a bounce-back to +0.3% from -0.8% the prior month. Year over year, we’ll be coming off a -2.8% figure for June, which marked the sixth negative Pending Home Sales print in the past seven months. Last week’s Existing Home Sales outperformed expectations to 4.01 million seasonally adjusted, annualized units.
After today’s close, the cavalcade of Q2 earnings season trots out some of its final major reports. Semiconductor major Marvell Technologies (MRVL - Free Report) , computer manufacturer Dell Technologies (DELL - Free Report) and specialty cosmetics retailer Ulta Beauty (ULTA - Free Report) are among those bigger names reporting this afternoon.
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