Author: Zac Martin, Investment Associate
Week Ending September 20th – Innovate or Liquidate
- The FOMC Meeting was the largest story for the week. The Fed cut interest rate by 0.5% and expect to cut two more times in 2024, which would leave the upper bound rate at 4.5%.
- Retail Sales for August beat analyst expectations, continuing to signal stable consumer spending.
- Likewise, Manufacturing and Industrial Production expanded this month by 0.95% and 0.8%, respectively. Both reports beat expectations.
- Existing Home Sales decreased by 100k for August while Building Permits increased 70k and beat expectations. Building permits remain below the most recent highs in late 2021.
- Leading Economic Indicators Index for August lowered by 0.2% which was led by a decrease in New Orders. ISM New Orders has been at its lowest value since May 2023.
- Earnings: FedEx reported Q1 Fiscal 2025 EPS below analyst expectations. The company highlighted that results were impacted negatively by a shift in service mix. Consumers shifted from priority services to deferred services. General Mills reported a 1% decline in revenue led by a tougher pricing environment. Meanwhile Darden Restaurants reported an increase in revenue due to new store openings, same store sales were negative.
The week ahead:
- Consumer Confidence (9/24)
- New Home Sales (9/25)
- GDP Q2 (9/26)
- Personal Consumption Expenditures (9/27)
- Earnings: AZO (9/24), CTAS, MU (9/25), ACN, KMX, LUV, INTU, COST (9/26)
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