Yahoo Finance Q2 GDP Ticks Up to 4.2%; DKS, AEO Report Earnings
Wednesday, August 29, 2018
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 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 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.
Mark Vickery
Senior Editor
Questions or comments about this article and/or its author? Click here>>
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
