However, the economic underperformance of Europe versus the U.S. and likely rate cuts this year by the Bank of England and European Central Bank could start weighing on lenders' performance. Sustained high rates could also exacerbate problems in the struggling commercial real estate sector.<\/p>\n\n\n\n
The coming weeks will prove crucial in determining if soaring bank shares can sustain their impressive run or if darker clouds are forming on the interest rate horizon. A potential shift in the rate cycle could present challenges and opportunities that will test the resilience of the European banking sector.<\/p>\n","post_title":"Higher Rates May Prove Double-Edged Sword for European Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"higher-rates-may-prove-double-edged-sword-for-european-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-04-25 22:18:19","post_modified_gmt":"2024-04-25 12:18:19","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16524","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
However, the economic underperformance of Europe versus the U.S. and likely rate cuts this year by the Bank of England and European Central Bank could start weighing on lenders' performance. Sustained high rates could also exacerbate problems in the struggling commercial real estate sector.<\/p>\n\n\n\n
The coming weeks will prove crucial in determining if soaring bank shares can sustain their impressive run or if darker clouds are forming on the interest rate horizon. A potential shift in the rate cycle could present challenges and opportunities that will test the resilience of the European banking sector.<\/p>\n","post_title":"Higher Rates May Prove Double-Edged Sword for European Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"higher-rates-may-prove-double-edged-sword-for-european-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-04-25 22:18:19","post_modified_gmt":"2024-04-25 12:18:19","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16524","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Most analysts still expect a strong first quarter as the higher rate environment and controlled bad loans provide tailwinds. Deutsche Bank is forecasting its 15th consecutive quarterly profit, while BNP Paribas' typically strong first quarter could get an added boost from lower rate cut expectations.<\/p>\n\n\n\n<\/figure>\n\n\n\n
However, the economic underperformance of Europe versus the U.S. and likely rate cuts this year by the Bank of England and European Central Bank could start weighing on lenders' performance. Sustained high rates could also exacerbate problems in the struggling commercial real estate sector.<\/p>\n\n\n\n
The coming weeks will prove crucial in determining if soaring bank shares can sustain their impressive run or if darker clouds are forming on the interest rate horizon. A potential shift in the rate cycle could present challenges and opportunities that will test the resilience of the European banking sector.<\/p>\n","post_title":"Higher Rates May Prove Double-Edged Sword for European Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"higher-rates-may-prove-double-edged-sword-for-european-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-04-25 22:18:19","post_modified_gmt":"2024-04-25 12:18:19","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16524","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
Most analysts still expect a strong first quarter as the higher rate environment and controlled bad loans provide tailwinds. Deutsche Bank is forecasting its 15th consecutive quarterly profit, while BNP Paribas' typically strong first quarter could get an added boost from lower rate cut expectations.<\/p>\n\n\n\n<\/figure>\n\n\n\n
However, the economic underperformance of Europe versus the U.S. and likely rate cuts this year by the Bank of England and European Central Bank could start weighing on lenders' performance. Sustained high rates could also exacerbate problems in the struggling commercial real estate sector.<\/p>\n\n\n\n
The coming weeks will prove crucial in determining if soaring bank shares can sustain their impressive run or if darker clouds are forming on the interest rate horizon. A potential shift in the rate cycle could present challenges and opportunities that will test the resilience of the European banking sector.<\/p>\n","post_title":"Higher Rates May Prove Double-Edged Sword for European Bank Earnings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"higher-rates-may-prove-double-edged-sword-for-european-bank-earnings","to_ping":"","pinged":"","post_modified":"2024-04-25 22:18:19","post_modified_gmt":"2024-04-25 12:18:19","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16524","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
Investors are bracing for a reality check on whether higher interest rates will continue boosting European bank profits or if the year-long rally in banking shares could soon run out of steam.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
Traders are currently trying to balance this two-sided narrative: the U.S. economic situation, which still does not point to recession, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes. The recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"Wall Street Stocks Fell As New Data Revealed U.S. Economic Growth Was Slower Than Anticipated","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-fell-as-new-data-revealed-u-s-economic-growth-was-slower-than-anticipated","to_ping":"","pinged":"","post_modified":"2024-04-29 02:10:49","post_modified_gmt":"2024-04-28 16:10:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16524,"post_author":"18","post_date":"2024-04-25 22:18:13","post_date_gmt":"2024-04-25 12:18:13","post_content":"\n
Investors are bracing for a reality check on whether higher interest rates will continue boosting European bank profits or if the year-long rally in banking shares could soon run out of steam.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
CME Group's FedWatch tool also reported that traders significantly reduced their expectations for a July rate cut as they believe that the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. It is also important to mention that the number of Americans who filed new claims for unemployment benefits dropped unexpectedly last week, indicating that labor market conditions remain tight.<\/p>\n\n\n\n
Traders are currently trying to balance this two-sided narrative: the U.S. economic situation, which still does not point to recession, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes. The recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"Wall Street Stocks Fell As New Data Revealed U.S. Economic Growth Was Slower Than Anticipated","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-fell-as-new-data-revealed-u-s-economic-growth-was-slower-than-anticipated","to_ping":"","pinged":"","post_modified":"2024-04-29 02:10:49","post_modified_gmt":"2024-04-28 16:10:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16524,"post_author":"18","post_date":"2024-04-25 22:18:13","post_date_gmt":"2024-04-25 12:18:13","post_content":"\n
Investors are bracing for a reality check on whether higher interest rates will continue boosting European bank profits or if the year-long rally in banking shares could soon run out of steam.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
Federal Reserve Chair Jerome Powell said last week that recent inflation data had not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought. The March Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, is due on Friday but according to LSEG data, money markets are currently anticipating approximately 36 basis points of Federal Reserve rate cuts for this year, which represents a significant decrease from the roughly 150 basis points expected at the beginning of the year.<\/p>\n\n\n\n
CME Group's FedWatch tool also reported that traders significantly reduced their expectations for a July rate cut as they believe that the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. It is also important to mention that the number of Americans who filed new claims for unemployment benefits dropped unexpectedly last week, indicating that labor market conditions remain tight.<\/p>\n\n\n\n
Traders are currently trying to balance this two-sided narrative: the U.S. economic situation, which still does not point to recession, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes. The recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"Wall Street Stocks Fell As New Data Revealed U.S. Economic Growth Was Slower Than Anticipated","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-fell-as-new-data-revealed-u-s-economic-growth-was-slower-than-anticipated","to_ping":"","pinged":"","post_modified":"2024-04-29 02:10:49","post_modified_gmt":"2024-04-28 16:10:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16524,"post_author":"18","post_date":"2024-04-25 22:18:13","post_date_gmt":"2024-04-25 12:18:13","post_content":"\n
Investors are bracing for a reality check on whether higher interest rates will continue boosting European bank profits or if the year-long rally in banking shares could soon run out of steam.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
Federal Reserve Chair Jerome Powell said last week that recent inflation data had not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought. The March Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, is due on Friday but according to LSEG data, money markets are currently anticipating approximately 36 basis points of Federal Reserve rate cuts for this year, which represents a significant decrease from the roughly 150 basis points expected at the beginning of the year.<\/p>\n\n\n\n
CME Group's FedWatch tool also reported that traders significantly reduced their expectations for a July rate cut as they believe that the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. It is also important to mention that the number of Americans who filed new claims for unemployment benefits dropped unexpectedly last week, indicating that labor market conditions remain tight.<\/p>\n\n\n\n
Traders are currently trying to balance this two-sided narrative: the U.S. economic situation, which still does not point to recession, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes. The recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"Wall Street Stocks Fell As New Data Revealed U.S. Economic Growth Was Slower Than Anticipated","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-fell-as-new-data-revealed-u-s-economic-growth-was-slower-than-anticipated","to_ping":"","pinged":"","post_modified":"2024-04-29 02:10:49","post_modified_gmt":"2024-04-28 16:10:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16524,"post_author":"18","post_date":"2024-04-25 22:18:13","post_date_gmt":"2024-04-25 12:18:13","post_content":"\n
Investors are bracing for a reality check on whether higher interest rates will continue boosting European bank profits or if the year-long rally in banking shares could soon run out of steam.<\/p>\n\n\n\n
This week marks the start of the first quarter earnings season for major European lenders. Britain's Lloyds Banking Group kicks things off on April 24, followed by French giant BNP Paribas, Germany's Deutsche Bank, and Britain's Barclays on April 25, according to Reuters reports.<\/p>\n\n\n\n
After years of ultra-low rates, surging borrowing costs have been a game-changer for European banks and their ability to profit from higher lending margins. This tailwind has supercharged bank stocks and investor payouts.<\/p>\n\n\n\n<\/figure>\n\n\n\n
As quoted by Reuters in their analysis on the topic, Co-Head of Europe at consulting firm Oliver Wyman points out the fundamental difference is that Europe has moved away from negative interest rates. This shift has profoundly impacted the outlook for banks in the region, an impact that continues to be felt. The move to positive rates represents a game-changing development for European lenders after years of operating in a negative rate environment.<\/p>\n\n\n\n
However, the full European banking picture won't emerge until later in April and early May when Spanish giants BBVA and Santander and France's Societe Generale and Swiss bank UBS report results.<\/p>\n\n\n\n
While recent reports from Nordea and Bankinter signal earnings growth remains solid, Oliver Wyman's Edelman cautioned that falling margins and weak loan demand could spell trouble ahead.<\/p>\n\n\n\n
By comparison, gross domestic product (GDP) increased at a 3.4% annual rate in the fourth quarter of 2023 and rose 4.9% in the three months before that. This latest GDP report is the freshest sign that the economy is cooling off, even as inflation stays firm and stickier inflation is pushing off expectations about when and how much the Federal Reserve will slash interest rates this year.<\/p>\n\n\n\n
The Commerce Department reported that the U.S. economy grew at a 1.6% annualized rate in the first quarter of 2024 while analysts had expected a 2.5% pace of first-quarter growth. The rise in GDP was mainly due to increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending, partially offset by a reduction in private inventory investment.<\/p>\n\n\n\n
By comparison, gross domestic product (GDP) increased at a 3.4% annual rate in the fourth quarter of 2023 and rose 4.9% in the three months before that. This latest GDP report is the freshest sign that the economy is cooling off, even as inflation stays firm and stickier inflation is pushing off expectations about when and how much the Federal Reserve will slash interest rates this year.<\/p>\n\n\n\n
The Commerce Department reported that the U.S. economy grew at a 1.6% annualized rate in the first quarter of 2024 while analysts had expected a 2.5% pace of first-quarter growth. The rise in GDP was mainly due to increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending, partially offset by a reduction in private inventory investment.<\/p>\n\n\n\n
By comparison, gross domestic product (GDP) increased at a 3.4% annual rate in the fourth quarter of 2023 and rose 4.9% in the three months before that. This latest GDP report is the freshest sign that the economy is cooling off, even as inflation stays firm and stickier inflation is pushing off expectations about when and how much the Federal Reserve will slash interest rates this year.<\/p>\n\n\n\n
\"The GDP numbers definitely put a ding in the paradigm that markets were hanging onto for equities in terms of high growth; and if you don't have high growth that will translate to lower-than-expected earnings.\"<\/em><\/p>\n\n\n\n<\/figure>\n\n\n\n
The Commerce Department reported that the U.S. economy grew at a 1.6% annualized rate in the first quarter of 2024 while analysts had expected a 2.5% pace of first-quarter growth. The rise in GDP was mainly due to increases in consumer spending, residential fixed investment, nonresidential fixed investment, and state and local government spending, partially offset by a reduction in private inventory investment.<\/p>\n\n\n\n
By comparison, gross domestic product (GDP) increased at a 3.4% annual rate in the fourth quarter of 2023 and rose 4.9% in the three months before that. This latest GDP report is the freshest sign that the economy is cooling off, even as inflation stays firm and stickier inflation is pushing off expectations about when and how much the Federal Reserve will slash interest rates this year.<\/p>\n\n\n\n
Wall Street stocks fell on Thursday as the newest economic data showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated. At the same time, disappointing results from Meta, whose shares weakened more than 10%, also weighed on market sentiment. James St. Aubin, chief investment officer at Sierra Mutual Funds in California, said<\/a>:<\/p>\n\n\n\n
Investors are currently trying to balance this two-sided narrative: the U.S. economic situation, which still remains resilient, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n","post_title":"Wall Street Stocks Advanced On The Fed's Dovish Signals. Focus Now Moves To The Job Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-advanced-on-the-feds-dovish-signals-focus-now-moves-to-the-job-report","to_ping":"","pinged":"","post_modified":"2024-05-04 00:19:59","post_modified_gmt":"2024-05-03 14:19:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16728","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16603,"post_author":"14","post_date":"2024-04-29 02:01:03","post_date_gmt":"2024-04-28 16:01:03","post_content":"\n
Wall Street stocks fell on Thursday as the newest economic data showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated. At the same time, disappointing results from Meta, whose shares weakened more than 10%, also weighed on market sentiment. James St. Aubin, chief investment officer at Sierra Mutual Funds in California, said<\/a>:<\/p>\n\n\n\n
Positive information is that the Organization for Economic Cooperation and Development (OECD) raised its global growth forecast, partially due to the resilience of the U.S. economy. First-quarter earnings season is almost complete, with 373 S&P 500 companies having reported their results and according to LSEG data, 77% of those companies have exceeded expectations.<\/p>\n\n\n\n
Investors are currently trying to balance this two-sided narrative: the U.S. economic situation, which still remains resilient, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n","post_title":"Wall Street Stocks Advanced On The Fed's Dovish Signals. Focus Now Moves To The Job Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-advanced-on-the-feds-dovish-signals-focus-now-moves-to-the-job-report","to_ping":"","pinged":"","post_modified":"2024-05-04 00:19:59","post_modified_gmt":"2024-05-03 14:19:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16728","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16603,"post_author":"14","post_date":"2024-04-29 02:01:03","post_date_gmt":"2024-04-28 16:01:03","post_content":"\n
Wall Street stocks fell on Thursday as the newest economic data showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated. At the same time, disappointing results from Meta, whose shares weakened more than 10%, also weighed on market sentiment. James St. Aubin, chief investment officer at Sierra Mutual Funds in California, said<\/a>:<\/p>\n\n\n\n
Despite muted jobless claims it is also important to mention that data released on this Thursday showed a drop in planned layoffs, a surge in quarterly labor costs, and a sharp deceleration in productivity, all of which throws focus on Friday's much anticipated April employment report.<\/p>\n\n\n\n
Positive information is that the Organization for Economic Cooperation and Development (OECD) raised its global growth forecast, partially due to the resilience of the U.S. economy. First-quarter earnings season is almost complete, with 373 S&P 500 companies having reported their results and according to LSEG data, 77% of those companies have exceeded expectations.<\/p>\n\n\n\n
Investors are currently trying to balance this two-sided narrative: the U.S. economic situation, which still remains resilient, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n","post_title":"Wall Street Stocks Advanced On The Fed's Dovish Signals. Focus Now Moves To The Job Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-advanced-on-the-feds-dovish-signals-focus-now-moves-to-the-job-report","to_ping":"","pinged":"","post_modified":"2024-05-04 00:19:59","post_modified_gmt":"2024-05-03 14:19:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16728","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16603,"post_author":"14","post_date":"2024-04-29 02:01:03","post_date_gmt":"2024-04-28 16:01:03","post_content":"\n
Wall Street stocks fell on Thursday as the newest economic data showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated. At the same time, disappointing results from Meta, whose shares weakened more than 10%, also weighed on market sentiment. James St. Aubin, chief investment officer at Sierra Mutual Funds in California, said<\/a>:<\/p>\n\n\n\n
Despite muted jobless claims it is also important to mention that data released on this Thursday showed a drop in planned layoffs, a surge in quarterly labor costs, and a sharp deceleration in productivity, all of which throws focus on Friday's much anticipated April employment report.<\/p>\n\n\n\n
Positive information is that the Organization for Economic Cooperation and Development (OECD) raised its global growth forecast, partially due to the resilience of the U.S. economy. First-quarter earnings season is almost complete, with 373 S&P 500 companies having reported their results and according to LSEG data, 77% of those companies have exceeded expectations.<\/p>\n\n\n\n
Investors are currently trying to balance this two-sided narrative: the U.S. economic situation, which still remains resilient, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n","post_title":"Wall Street Stocks Advanced On The Fed's Dovish Signals. Focus Now Moves To The Job Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-street-stocks-advanced-on-the-feds-dovish-signals-focus-now-moves-to-the-job-report","to_ping":"","pinged":"","post_modified":"2024-05-04 00:19:59","post_modified_gmt":"2024-05-03 14:19:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16728","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16603,"post_author":"14","post_date":"2024-04-29 02:01:03","post_date_gmt":"2024-04-28 16:01:03","post_content":"\n
Wall Street stocks fell on Thursday as the newest economic data showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated. At the same time, disappointing results from Meta, whose shares weakened more than 10%, also weighed on market sentiment. James St. Aubin, chief investment officer at Sierra Mutual Funds in California, said<\/a>:<\/p>\n\n\n\n
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