Marketbites: Fourth Quarter GDP Improves
MARKET PERFORMANCE:
Portfolio Manager Commentary:
U.S. markets rose yesterday after more corporate earnings were released and fourth-quarter GDP came in above expectations. The earnings released yesterday continued to show mixed results. Tesla came in with strong results and gained 11% which gave the Nasdaq index and other EV stocks a boost. Some beaten-up tech giants such as Microsoft, Nvidia, Amazon and Alphabet also gained. IBM fell about 4.5% despite a revenue beat.
Airline earnings rolled out Thursday, with Southwest falling 3% on a larger-than-expected loss fueled by its holiday meltdown. American Airlines rose 2.2% following a fourth-quarter beat. United and Delta also moved lower. Elsewhere, Chevron added nearly 5% after announcing a $75 billion share repurchasing program.
Focus now shifts to next week’s Fed meeting, where the central bank is widely expected to announce a 25 basis point increase as it battles high inflation. Investors will be on the lookout for clue into how much higher the Fed intends to hike before it cuts rates.
Chart of the Day:
The U.S. GDP rose 2.9% in the fourth quarter of 2022 amid high inflation and rising interest rates. The fourth quarter rise reflects a return to a more normal pace of growth. Consumers, the economy’s main engine, spent at a solid but slower pace last quarter of 2.1%. Business investment ticked up at a weaker rate of 0.7%, as companies cut back on equipment spending. The housing market continued to slump.
Source: WSJ
Invest With Us
Download and invest with us in the Avidus app! Avidus is your "in" to directly owning a portfolio of remarkable companies. Leave Wall Street & Robo-advisors behind!
