We’ll take a quick break from earnings and discuss the economic data released today since there was a lot… 😮💨
First up, the U.S. trade deficit in goods increased by 2% to $91.5 billion in January, slightly above its fourth-quarter average. Wholesale inventories fell 0.4% in January after a 0.1% gain in December. Retail inventories rose 0.3%, following a 0.4% increase in December. After the inventory numbers helped buoy Q4 GDP, these early readings indicate they could be a drag on Q1’s numbers. 📦
Business activity remains mixed, with Chicago PMI coming in at 43.6 vs. the 45.5 expected. This marks its sixth straight month in contraction territory. Richmond Fed manufacturing index also declined in February, falling from -11 to -16. Driving the decline was a steep drop in shipments from -3 to -15. Lastly, the Dallas Fed service sector indicated a rise from -15 to -9.3 in February, as services continue to hold up better than manufacturing. 🏭
The conference board consumer confidence index fell from 106 to 102.9 in January, falling short of the 108.5 estimated. Driving the weakness was the expectations index, which measures consumers’ short-term outlook for income, business, and labor market conditions falling from 76 to 69.7. Inflation expectations continue to fall as prices at the pump have stabilized nationwide. 🔮
The S&P/Case-Shiller index showed national home prices decelerated for the sixth straight month in December. Home prices rose 5.8% YoY in the month, down from an annual gain of 7.6% in November. Prices are now down 4.4% from their June peak as higher interest rates and poor affordability weigh on demand. 🏘️
Lastly, General Motors added to the list of layoffs, cutting 500 salaried positions as it looks to increase profits and preserve cash. ✂️