US consumer confidence
The US Conference Board Consumer Confidence Index improved in February 2017. It was at 114.8 compared to 111.6 in January 2017 and beat market expectations of 111.3.
The index showed improved figures as improvement in consumer sentiment is on the rise. Expectations in regards to business climate, personal income, and labor market conditions improved. However, the improvement was a little lower in January as consumers remained cautious about near-term economic growth.
However, consumers were slightly positive about the condition of the labor market and the current business environment, which indicates that the economy could grow at a moderate pace. The improvement in various economic indicators such as the inflation index, economic growth, and labor market conditions are increasing consumer confidence. Consumers’ long-term outlook for the economy (SPXL) (VOO) (IWM) is also changing.
Possible rate hikes
The Fed also sounds more hawkish for 2017. Earlier in its December 2016 meeting, the central bank said that there could be three rate hikes in 2017. The rate hike is appropriate in the economy when the economy shows a stronger move. The hawkish tone from the Fed is indicating that the economic activity is improving gradually.
In the next part of this series, we’ll analyze the performance of the US GDP in 4Q16.
Whiting Petroleum stock saw volatile movements in the previous week. Whiting Petroleum stock had a return of -14.7% since the beginning of the year.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.