Newscasts - Trading at Noon: Wall Street rebounds on upbeat GDP revision
29/08/2024 16:38
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_5p0l8vxn&referenceId=1_5p0l8vxn&pageId=Newscasts Source: 'Reuters - Business videos' Description: U.S. stocks rose on Thursday, as investors were relieved after data showed a still robust economy. U.S. economic growth was stronger than initially estimated in the second quarter due largely to an upward revision in consumer spending. Short Link: https://refini.tv/4dHPJCn Video Transcript: Upbeat GDP revision cures Wall Street's NVIDIA disappointment. Welcome to Trading at Noon. I am Peter Devlin. With the earnings season drawing to a close, the focus is turning back to the macro landscape. The US economy grew at a slightly stronger pace in the second quarter than initial expected. GDP rose at a 3% annualized rate in Q2, up from the previous estimate of 2.8%. Personal spending, which accounts for more than two-thirds of the economy, advanced 2.9% versus the prior estimate of 2.3%. Weekly initial jobless claims slipped marginally, falling by 2,000 to 231,000. Claims have retreated from an 11-month high in late July, as temporary distortions from plant shutdowns faded. Levels remain more consistent with a steadily cooling labor market. And in housing data, pending US sales of existing homes sunk to the lowest level since the series started in 2001. High prices and borrowing costs drove potential buyers from the market. So, with the Fed's preferred inflation gauge due out tomorrow, it could offer hints on the Fed's easing path. I think if we get some better news on PCE and no real surprises, then I think it will be- we know there is going to be a cut in September, I think it is just whether we see 25 basis points or 50 basis points. But at the moment, the US economy seems to be holding up well. So, it is maybe more of a play for the Fed to go easy and just start cutting I think slightly less than having a 50-basis-point cut. Turning to Wall Street and stocks rose today as investors look to recover from declines since in the prior session. Chip bellwether NVIDIA shares pared some losses as investors stayed confident of growth prospects, despite a forecast that fell short of lofty expectations. Meanwhile, in corporate news, Apple shares rose over 1%, as Citi listed the iPhone-maker as its top artificial intelligence pick. Apple is betting that its first AI-equipped smartphones will be a hit, as Nikkei reported that the company has ordered over 10% more iPhones from suppliers than last year. Shares of Dollar General plummeted, opening at their lowest since June 2018. The discount retailer slashed its annual sales and profit forecast as budget-conscious customers cut back spending. Shares of main rival Dollar Tree were also set lower. And better news for electronics retailer Best Buy, as shares rose to their highest since March 2022. The company raised its annual profit forecast and topped expectations. Tighter controls on cost helped offset the impact from steeper discounts and broad promotions. And finally, oil prices jumped amid a worsening supply outlook in Libya. Additionally, Reuters reported Iraq plans to reduce its oil output to around 3.9 million barrels per day in September. Well, that is Trading at Noon