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Income & Spending Data Depicts Cooler Economy; Plus GOOGL, AAPL
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Monday, April 29, 2019
Following Friday’s big 3.2% growth number in Q1 GDP, this morning’s data brings up back down to earth: Personal Income and Consumer Spending figures for March were mixed this Monday, with income cooler than expected but spending slightly higher than estimates.
Personal Income’s headline number was +0.1% for last month, notably short of the +0.4% consensus estimate and half of the previous month’s +0.2% read. This demonstrates that, even with quarterly GDP up over 3%, individuals aren’t really seeing this reflected in their paychecks. The number is still a positive one, but just barely.
Consumer Spending at +0.9%, on the other hand, beat estimates by 10 basis points and well ahead of the previous read (from January) of +0.1% spending growth. That last figure came on the heels of a market meltdown from last December; these days, the consumer is feeling stronger and spending more, even if they may not be earning much more.
Stripping out volatile measures to give a smoother impression of inflation, this morning’s “core” number year over year underperformed at +1.6% — not only just half of what Q1 GDP’s number came in at, but down from expectations (including the Fed’s 2% inflation target), as well. Personal Income for the year also missed estimates: +1.5% year over year.
After today’s closing bell, we expect the latest FAANG corporation to report earnings: Alphabet, Inc. (GOOGL - Free Report) . The search-leading conglomerate is expected to bring $10.57 per share on $29.99 billion in quarterly sales, up 6.45% and 20.64%, respectively. The Google parent has beaten estimates in each of the past 4 quarters by an average of 17.8%. Coming into the report, the company has a Zacks Rank #3 (Hold) rating and a Style Score (Value, Growth, Momentum) of B.
Tomorrow afternoon brings us the last of the FAANG companies to report: Apple Inc. (AAPL - Free Report) . The iPhone giant is expecting to bring $2.37 per share on $57.54 billion in revenues for the quarter. These numbers are down year over year, by 13.2% and 5.88%, respectively. Apple is also rated a Zacks Rank #3, with a Style Score of D.
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Income & Spending Data Depicts Cooler Economy; Plus GOOGL, AAPL
Monday, April 29, 2019
Following Friday’s big 3.2% growth number in Q1 GDP, this morning’s data brings up back down to earth: Personal Income and Consumer Spending figures for March were mixed this Monday, with income cooler than expected but spending slightly higher than estimates.
Personal Income’s headline number was +0.1% for last month, notably short of the +0.4% consensus estimate and half of the previous month’s +0.2% read. This demonstrates that, even with quarterly GDP up over 3%, individuals aren’t really seeing this reflected in their paychecks. The number is still a positive one, but just barely.
Consumer Spending at +0.9%, on the other hand, beat estimates by 10 basis points and well ahead of the previous read (from January) of +0.1% spending growth. That last figure came on the heels of a market meltdown from last December; these days, the consumer is feeling stronger and spending more, even if they may not be earning much more.
Stripping out volatile measures to give a smoother impression of inflation, this morning’s “core” number year over year underperformed at +1.6% — not only just half of what Q1 GDP’s number came in at, but down from expectations (including the Fed’s 2% inflation target), as well. Personal Income for the year also missed estimates: +1.5% year over year.
After today’s closing bell, we expect the latest FAANG corporation to report earnings: Alphabet, Inc. (GOOGL - Free Report) . The search-leading conglomerate is expected to bring $10.57 per share on $29.99 billion in quarterly sales, up 6.45% and 20.64%, respectively. The Google parent has beaten estimates in each of the past 4 quarters by an average of 17.8%. Coming into the report, the company has a Zacks Rank #3 (Hold) rating and a Style Score (Value, Growth, Momentum) of B.
Tomorrow afternoon brings us the last of the FAANG companies to report: Apple Inc. (AAPL - Free Report) . The iPhone giant is expecting to bring $2.37 per share on $57.54 billion in revenues for the quarter. These numbers are down year over year, by 13.2% and 5.88%, respectively. Apple is also rated a Zacks Rank #3, with a Style Score of D.
Mark Vickery
Senior Editor
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Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
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