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We interrupt this Q2 earnings season to bring new economic data, which help inform the relative strength of aspects of our economy behind the top- and bottom-lines of the S&P 500 and beyond. This data also comes a day prior to the first read on Q2 2018 Gross Domestic Product (GDP) data, which is expected to reach north of 4.0% for the first time in four years.
Initial Jobless Claims bumped up from the extraordinarily low 208K the previous week (which itself was revised upward from the initial 207K) to 217K new claims last week — still an historically low figure, and remains within the 200-225K range we’ve been in for the past couple months now. Continuing Claims ratcheted even further downward on the week, however, from a previous 1.753 million read to 1.745 million last week. Have we mentioned these numbers are extraordinary?
The preliminary read on June Durable Goods came in lighter than expected this morning — +1.0% from the consensus estimate of 3.0%. Digging into these numbers a bit, subtracting Transportation costs, June durables reached +0.4%. Ex-Defense spending, +0.5%. Non-Defense, ex-Aircraft, we see +0.6%. Non-Defense Cap Orders came in at +1.0% for June. A slight disappointment here, but these numbers do carry some month-to-month volatility, especially on the preliminary reads.
European Central Bank (ECB) President Mario Draghi has talked this morning, both about ECB policy going forward and in commentary on the Trump/E.U. trade talks this week. Draghi said it was a “good sign” the U.S. and E.U. were working toward new trade agreements. He also said interest rates will remain unchanged at 0%, likely until the summer of 2019. The data he sees is consistent with economic growth in the E.U., but he also remarked that stimulus is still needed to reach its desired 2% inflation threshold.
In earnings news, McDonald’s (MCD - Free Report) posted Q2 earnings of $1.99 per share, ahead of the $1.92 in the Zacks consensus. Sales of $5.35 billion topped the expected $5.32 billion, on +4% global comps year over year. For more on MCD’s earnings, click here.
Lower downstream results hampered Royal Dutch Shell earnings in its Q2 report this morning, only bringing in $1.12 per share from the $1.41 expected by analysts. However, revenues of $99.27 billion in the quarter was 37% better than the year-ago Q2 sales results, offset a bit by higher costs. The company also announced a share buyback program to the tune of $25 billion over the next 2 years. For more on RDS.A’s earnings, click here.
American Airlines (AAL - Free Report) also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. However, revenues of $11.64 billion were just shy of the Zacks consensus $11.65 billion. The company has also lowered full-year earnings guidance to $4.50-5.00 per share, and shares are down marginally in pre-market trading. For more on AAL’s earnings, click here.
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Earnings From MCD, AAL, RDS.A
We interrupt this Q2 earnings season to bring new economic data, which help inform the relative strength of aspects of our economy behind the top- and bottom-lines of the S&P 500 and beyond. This data also comes a day prior to the first read on Q2 2018 Gross Domestic Product (GDP) data, which is expected to reach north of 4.0% for the first time in four years.
Initial Jobless Claims bumped up from the extraordinarily low 208K the previous week (which itself was revised upward from the initial 207K) to 217K new claims last week — still an historically low figure, and remains within the 200-225K range we’ve been in for the past couple months now. Continuing Claims ratcheted even further downward on the week, however, from a previous 1.753 million read to 1.745 million last week. Have we mentioned these numbers are extraordinary?
The preliminary read on June Durable Goods came in lighter than expected this morning — +1.0% from the consensus estimate of 3.0%. Digging into these numbers a bit, subtracting Transportation costs, June durables reached +0.4%. Ex-Defense spending, +0.5%. Non-Defense, ex-Aircraft, we see +0.6%. Non-Defense Cap Orders came in at +1.0% for June. A slight disappointment here, but these numbers do carry some month-to-month volatility, especially on the preliminary reads.
European Central Bank (ECB) President Mario Draghi has talked this morning, both about ECB policy going forward and in commentary on the Trump/E.U. trade talks this week. Draghi said it was a “good sign” the U.S. and E.U. were working toward new trade agreements. He also said interest rates will remain unchanged at 0%, likely until the summer of 2019. The data he sees is consistent with economic growth in the E.U., but he also remarked that stimulus is still needed to reach its desired 2% inflation threshold.
In earnings news, McDonald’s (MCD - Free Report) posted Q2 earnings of $1.99 per share, ahead of the $1.92 in the Zacks consensus. Sales of $5.35 billion topped the expected $5.32 billion, on +4% global comps year over year. For more on MCD’s earnings, click here.
Lower downstream results hampered Royal Dutch Shell earnings in its Q2 report this morning, only bringing in $1.12 per share from the $1.41 expected by analysts. However, revenues of $99.27 billion in the quarter was 37% better than the year-ago Q2 sales results, offset a bit by higher costs. The company also announced a share buyback program to the tune of $25 billion over the next 2 years. For more on RDS.A’s earnings, click here.
American Airlines (AAL - Free Report) also came out with Q2 results this morning, beating by 4 cents on the bottom line to $1.63 per share. However, revenues of $11.64 billion were just shy of the Zacks consensus $11.65 billion. The company has also lowered full-year earnings guidance to $4.50-5.00 per share, and shares are down marginally in pre-market trading. For more on AAL’s earnings, click here.