• What does the GDP show about the U.S. economy?
• What are the Q1 retail earnings highlights?
• What is Dell's growth outlook in AI?
MARKET MOVEMENTS
Dow Jones
S&P 500
Nasdaq
38,078.57(-0.94%)
5,251.87(-0.29%)
16,876.65(-0.26%)
Opening price as of 05/30/2024 compared to last close
IN THE HEADLINES
U.S. Economy Grows Only 1.3% in Q1 as Consumer Spending Slows
The U.S. economy's growth in the first quarter was revised down to an annualized rate of 1.3% from the previously estimated 1.6%, reflecting weaker consumer spending and equipment investment. This slowdown contrasts sharply with the 3.4% growth rate in the final quarter of 2023. Inflation for the first quarter was also slightly revised down to 3.3%. Despite this, inflation remained higher than expected, prompting the Federal Reserve to delay potential interest rate cuts. Treasury yields fell slightly due to the revised inflation data, while stock futures saw modest gains. Concurrently, jobless claims increased by 3,000 to 219,000 for the week ending May 25, although the labor market remains resilient, supporting ongoing economic stability. Read more
Q1 Retail Earnings Season Unveiled
The U.S. economy slowed in the first quarter due to the Federal Reserve's tight monetary policy and persistent inflation, delaying expected interest rate cuts. Consumer spending held up thanks to a strong job market, but inflation outpaced wage growth, particularly affecting lower-income households. Retailers like Walmart benefited from a shift toward essential goods, while Target struggled with discretionary items. First-quarter earnings for retailers, including Amazon, showed significant growth. As earnings season progresses, overall S&P 500 earnings are expected to rise, with strong trends in the tech sector balancing out weaknesses elsewhere, and second-quarter earnings are projected to grow. Read more
Dell's AI Momentum Surges, Distancing from Nvidia
Dell Technologies Inc. has witnessed a surge in its shares, garnering comparisons to market leader Nvidia Corp., as investors foresee substantial gains from the AI boom. Dell's introduction of AI-optimized PCs has heightened expectations for a customer upgrade cycle, while its high-powered servers have garnered accolades from Nvidia CEO Jensen Huang. Despite its achievements, Dell's shares trade at a discount compared to other tech giants, suggesting it is undervalued and underappreciated. Analysts anticipate Dell's potential inclusion in the S&P 500, which could bolster investment further. With its strategic foothold in the AI ecosystem and robust performance in PC and server markets, Dell presents itself as a promising prospect for both growth and value investors. Read more
TradeUP TIDBITS
Americans are Feeling Better About The Economy For The First Time in Four Months
“Consumers’ assessment of current business conditions was slightly less positive than last month. However, the strong labor market continued to bolster consumers’ overall assessment of the present situation,” Dana Peterson, chief economist at The Conference Board, said in a release. Read the Full Article
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