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A Slew Of Economic and Earnings Data

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Coming up on the long Labor Day weekend, after which most Americans will return to work after another pleasant summertime, we don’t see a lot of activity in either economic data or quarterly earnings reports. New jobs numbers — from private-sector ADP and the government tally BLS non-farm payrolls — won’t be released until next week.

But we do see a revision to Q2 Gross Domestic Product (GDP) this weekend, which ratcheted up 10 basis points to 4.2% in the second quarter of calendar 2018. Compare this to the previous quarter’s 2.2% final GDP and the 3.1% from Q2 2017. As we had stated upon the first take on Q2 GDP, the last time we saw a read this high was way back in Q3 of 2014.

The increase in GDP is credited to fixed income (non-residential, aka business enterprise) and private inventory. These figures were slightly offset by Personal Income Expenditures (PCE), which were revised down from 4.0% in the initial report to 3.8% on today’s first revision. A second and final revision to Q2 GDP growth is expected around the same time we see the first read on Q3 GDP, which comes to an end September 30.

Dick’s Sporting Goods (DKS - Free Report)  posted mixed results in its Q2 earnings report, beating estimates on the bottom line by greater than 15% to $1.20 per share. But quarterly sales missed expectations by more than 2.5% to $2.18 billion. Shares have plummeted on the news more than 8% in early trading, following year-to-date gains of higher than 26%. The Retail space has performed well overall this quarter; mixed earnings reports, as a result, tend to get crushed. For more on DKS’ earnings, click here.

American Eagle Outfitters (AEO - Free Report)  topped estimates for both earnings and sales for its Q2 report, putting up a 3-cent beat to 34 cents per share on revenues of $964.85 million, which beat expectations by 2%. And if you thought Dick’s share gains year-to-date were impressive, American Eagle has gained 45% since that time. But a weaker outlook is sending AEO shares down 7% in pre-market trading. For more on AEO’s earnings, click here.

Domestic stock indexes are up the past three trading days, but hover around a zero balance a half hour ahead of today’s opening bell. Pending Home Sales will be released later this morning, which has been a sector generating a bit of headwind lately in this otherwise historically robust economy.


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