Steady as she goes: US GDP holds firm at 3.0%
In the latest economic data, the US Gross Domestic Product (GDP) remained steady, matching both forecasted and previous figures. The GDP, which measures the annualized change in...
In the latest economic data, the US Gross Domestic Product (GDP) remained steady, matching both forecasted and previous figures. The GDP, which measures the annualized change in...
- Markets appear to have bought into the “soft landing” narrative after the Federal Reserve’s hefty interest rate cut, but Bank of America Securities remains a seller...
The US dollar index hit 14-month lows on Wednesday near 100.20. The Fed is expected to cut 25-bps rates in November and December, so market participants may price in the impact of future cuts.
Gargi Chaudhuri, BlackRock Americas chief investment and portfolio strategist, joins Morning Brief hosts Brad Smith and Seana Smith to discuss how investors should position themselves amid the rate-cutting cycle and ahead of the election. The strategist explains that the market “backdrop is really great, especially for those investors looking to earn income in the fixed-income market… In the belly of the curve, go into the income-generating parts of the market, such as securitized assets, such as defensive high yield, such as parts of emerging markets.” Chaudhuri notes that recent normalization in the labor market and other aspects of the economy is not a reason for investors to fret. She says, “I want investors to understand that this is normal. This isn't something that they should be worried about or scared of. They should continue to remain invested.” “We love leaning into quality call as a way of expressing that view and then broadening out to value, especially to large-cap value where we think we're going to see a little bit of performance return, especially as we go into these last three months,” she adds. Chaudhuri tells Yahoo Finance that when looking for a quality company, she watches for consistent strong earnings growth, the ability to generate ample cash flow, and low leverage. Ahead of the election, Chaudhuri tells investors, “Think about the areas of the market that will do regardless of what happens in November or January 2025… We understand that you might be nervous about the elections, but keep politics out of your portfolio.” She highlights infrastructure, manufacturing, and independent tech as opportunities for bipartisan plays. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Naomi Buchanan.
According to Odaily, Federal Reserve's John Williams announced the formation of a new committee dedicated to the use and understanding of benchmark rates. This committee aims to assist the market in effectively utilizing and comprehending these rates. Williams did not provide any comments on the current economic situation or monetary policy during his announcement.Additionally, Federal Reserve Chairman Jerome Powell, in his brief opening remarks at the New York Federal Reserve, refrained from discussing monetary policy or the economic outlook.
The market will be paying attention to the reaction to Micron Technology’s earnings and the release of weekly initial jobless claims. Dow Jones Industrial Average futures were rising 156 points, or 0.4%. S&P 500 futures were gaining 0.7% and Nasdaq 100 futures were up 1.3%.
According to BlockBeats, revised U.S. GDP data released on September 26 indicates that the American economy grew faster in 2023 than initially expected. Despite significant interest rate hikes by the Federal Reserve, increased business investment and consumer spending contributed to this upward revision. The GDP growth rate for 2023 has been adjusted to 2.9%, up from the previously estimated 2.5%. This revision was also influenced by an upgrade in residential investment, including residential construction. Additionally, the economic growth rate for 2022 has been revised upward by 0.6 percentage points to 2.5%, primarily due to higher consumer spending and business investment. The annual benchmark data from the U.S. Bureau of Economic Analysis (BEA) also revealed a significant upward revision in corporate profits for the previous year. Adjustments to inflation were minimal, while the savings rate saw an increase. Dave Wasshausen, Deputy Director of the BEA's National Economic Accounts, stated that the overall economic condition remains unchanged.
According to Odaily, the United States' economic indicators for the second quarter have been released. The core Personal Consumption Expenditures (PCE) price index annualized quarterly rate stood at 2.8%, matching both the forecast and the previous value of 2.8%. This measure is closely watched as it reflects the underlying inflation trends excluding food and energy prices.The actual Gross Domestic Product (GDP) annualized quarterly rate for the second quarter was confirmed at 3%, aligning with expectations and the previous figure of 3%. This indicates steady economic growth during the period.However, the actual personal consumption expenditures annualized quarterly rate for the second quarter was slightly lower than anticipated, coming in at 2.8% compared to the expected 2.9% and the previous value of 2.9%. This suggests a minor slowdown in consumer spending.Additionally, the final sales annualized quarterly rate for the second quarter was recorded at 1.9%, down from the previous value of 2.2%. This metric excludes changes in inventories and provides a clearer picture of demand in the economy.
According to BlockBeats, the number of initial jobless claims in the United States for the week ending September 21 was recorded at 218,000. This figure is lower than the expected 225,000 and marks a decrease from the previous week's revised count of 222,000. This is the lowest level of initial jobless claims since the week of May 18.
The Chinese economy is being dragged down by tumbling property values, and the government is stepping in to boost economic growth. U.S. home prices continue to climb.