“I don’t see any signs that the economy is at risk of a downturn,” Yellen explained, taking note of the strong labor market as well as cooling inflation. “There’s absolutely no reason for a shutdown,” she advised, adding that “Creating a situation that could cause a loss of momentum is something we don’t need as a risk at this point.”

Although a strong labor market is seldom conducive to suppressing inflation, Yellen explained that because it is cooling, the labor market is providing room for inflation to decline to the Federal Reserve’s 2% target.

The post U.S. Treasury Secretary Confirms That U.S. Economy is Not Facing Downturn appeared first on theprimarymarket.com.

In Europe, the pan-European Stoxx 600 edged higher by 0.1%, putting the index on track to record its third consecutive daily rise. The index was largely boosted by auto stocks, which rose by 1.5%.

Renault SA rose after increasing its full-year earnings guidance due to strong sales for its new models. Swedish retailer Hennes & Mauritz AB also climbed after reporting a smaller-than-expected decline in earnings.

Nasdaq futures gained 0.2% early Wednesday. The tech-heavy index was led by chipmaker Micron Technology Inc., which advanced by more than 3% in pre-market trading after delivering an upbeat sales forecast.

S&P 500 futures rose incrementally by 0.1%, while those on the Dow Jones Industrial Average remained little changed. Outside of the U.S. and Europe, the MSCI Asia Pacific Index declined 0.3% while the MSCI Emerging Markets Index fell by 0.5%.

The post Stocks Rise as Strong Earnings Report Supresses Recession Concerns appeared first on theprimarymarket.com.

U.S. home sales rose in May, as did April home prices. May’s retail sales also beat consensus estimates, while the jobs report for the same month beat expectations, with 339,000 new jobs being added to the U.S. economy. This influx of positive data has also led to a rise in air travel, with more U.S. travelers going on vacation than in 2019 in seven of the last 10 days.

Consumers are becoming more optimistic regarding the likelihood of an incoming U.S. recession. 69.3% of consumers in June said a recession in the next 12 months is “somewhat” or “very likely,” compared to 72.2% in May.

Jefferies US economist Thomas Simons wrote in a note to investors that, “consumer attitudes remain resilient.” He explained that while there are still economic concerns plaguing the U.S., consumers are becoming less frightened of the prospect of an impending recession.

The post Strong Economic Data Extinguishes Recession Fears appeared first on theprimarymarket.com.

The investment giant’s decision to lower its recession odds is driven by the cooldown in market concerns as the banking sector continues to stabilize following March’s crisis which saw the start of the collapse of a slew of U.S. banks.

Also considered was the nation’s GDP growth, with a forecast of 1.8% for 2023. “We have become more confident in our baseline estimate that the banking stress will subtract only a modest 0.4 percentage points from real GDP growth this year,” Jan Hatzius, Goldman’s chief economist stated in anote. “Regional bank stock prices have stabilized, deposit outflows have slowed, lending volumes have held up, and lending surveys point to only limited tightening ahead.”

The post Goldman Reduces U.S. Recession Probability Following Debt Deal appeared first on theprimarymarket.com.

U.S. GDP growth was 1.3% in the first quarter of 2023, meaning that U.S. economic growth is yet to collapse since the coronavirus pandemic. Several major U.S. corporations reported strong Q1 earnings, with specialty clothing retailers Abercrombie & Fitch and Urban Outfitters reporting significant sales rises while Nvidia and Palo Alto Networks reported upbeat earnings forecasts, signaling that business-to-business sales are also proving strong.

Although a group of economists from Citi stated on Thursday that further rate hikes from the Federal Reserve may be needed in order to cool inflation, Fed Chair Jerome Powell revealed that there is a possibility that the central bank may pause its rate hikes, stating that he prefers to keep his options open ahead of the next policy meeting.

Federal Reserve Bank of Boston President Susan Collins expressed hope that rate hikes could be tamed, explaining: “While inflation is still too high, there are some promising signs of moderation. I believe we may be at, or near, the point where monetary policy can pause raising interest rates.”

The post GDP, Jobs Data Subside Recession Fears appeared first on theprimarymarket.com.

This assessment comes after American Express announced its fourth-quarter results. Net sales for the company were $14.2 billion, falling marginally short of expectations of $14.21 billion in sales. AmEx shares rose 5% following the announcement.

Sales for the company’s U.S. consumer services and commercial segments proved strong, rising 23% and 15% respectively. With full-year sales growth of 15% to 17%, the company’s earnings are expected to be in the region of $11 to $11.40; thus exceeding analysts’ estimates of $10.52.

When questioned about the company’s sales for the fourth quarter, Squeri stated that a weakness in small business spending was detected, thereby leading to results narrowly missing estimates.

Bank of America CEO Brian Moynihan echoed Squeri’s assessment of the likelihood of an incoming recession, despite BoA remaining in the “mild” recession category. “They’re spending nicely. The money in their accounts continues to be solid,” Moynihan said of his company’s clients’ spending patterns.

The post AmEx CEO Insists That Recessionary Signals Not Present appeared first on theprimarymarket.com.

Among the indexes that were hardest hit was the Stoxx Europe 600 that plunged by 0.9% on Thursday morning’s early trading session. The 10-year treasury yield also experienced a significant drop to its lowest level since September.

Following the shortlived rally arising from optimism due to China’s economic reopening, stocks have fizzled as economic data exhibiting slowdowns in other regions emerges.

Sailesh Jha, the chief economist and head of market research for RHB Banking Group, offered the following analysis: “This weakness in equity markets will continue a bit longer in this first quarter of the year as the market reprices what the Fed will do.”

Copper declined by 1.2% in London trading, while oil fell for a second consecutive day as U.S. recession worries persist. Spot gold advanced by 0.2% to $1,908.60 per ounce.

The post Treasures Rise and Stocks Weaken Amid Recession Concerns appeared first on theprimarymarket.com.

In response, St. Louis Fed President James Bullard recommended that he and his colleagues raise interest rates above 5% in an effort to suppress inflation as much as possible following the reading.

The Commerce Department stated in its report that retail sales on a whole fell by 1.1% last month, thereby exceeding analysts’ forecasts of a 0.8% decline. The Producer Price Index declined by 0.5% last month; the largest monthly drop since the pandemic.

The Nasdaq Composite experienced a 0.2% drop, while the S&P 500 and the Dow Jones Industrial Average fell by 0.4% and 0.7% respectively.

As economic conditions tighten, Microsoft announced its decision to cut 10,000 jobs in an effort to cut costs. Shares in United Airlines fell after the U.S. major carrier reported better-than-expected earnings during the final quarter of 2022.

The post U.S. Stocks Decline Following Caution of “Earnings Recession” appeared first on theprimarymarket.com.

American Express recently shared a positive second-quarter report that shows the company recording a 31% increase in sale numbers compared to 2021 while also beating the Wall Street estimates with room to spare. This included $13.4 billion in net sales compared to $12.51 billion expected and $2.57 diluted earnings per share vs. $2.39 estimated.

Speaking with Yahoo Finance, Squeri said that these numbers are making it hard for him to recognize that a recession is coming.

“We’re acquiring spending, and we see future travel bookings [strong] so I don’t see it in my numbers at all,” Squeri said. ” … It’s really hard for me to get my head around that in quarter three or quarter four we’re going to have a big slowdown.”

After the company disclosed its Q2 numbers, the Amex stock jumped 6% on Friday morning after closing at $150.21 per share on Thursday. However, the surge proved to be short-lived as the shares dropped to $153.01 by the end of the day.

The post American Express CEO on Recession: “I Don’t See It In My Numbers At All” appeared first on theprimarymarket.com.

“I don’t see any signs that the economy is at risk of a downturn,” Yellen explained, taking note of the strong labor market as well as cooling inflation. “There’s absolutely no reason for a shutdown,” she advised, adding that “Creating a situation that could cause a loss of momentum is something we don’t need as a risk at this point.”

Although a strong labor market is seldom conducive to suppressing inflation, Yellen explained that because it is cooling, the labor market is providing room for inflation to decline to the Federal Reserve’s 2% target.

The post U.S. Treasury Secretary Confirms That U.S. Economy is Not Facing Downturn appeared first on theprimarymarket.com.

In Europe, the pan-European Stoxx 600 edged higher by 0.1%, putting the index on track to record its third consecutive daily rise. The index was largely boosted by auto stocks, which rose by 1.5%.

Renault SA rose after increasing its full-year earnings guidance due to strong sales for its new models. Swedish retailer Hennes & Mauritz AB also climbed after reporting a smaller-than-expected decline in earnings.

Nasdaq futures gained 0.2% early Wednesday. The tech-heavy index was led by chipmaker Micron Technology Inc., which advanced by more than 3% in pre-market trading after delivering an upbeat sales forecast.

S&P 500 futures rose incrementally by 0.1%, while those on the Dow Jones Industrial Average remained little changed. Outside of the U.S. and Europe, the MSCI Asia Pacific Index declined 0.3% while the MSCI Emerging Markets Index fell by 0.5%.

The post Stocks Rise as Strong Earnings Report Supresses Recession Concerns appeared first on theprimarymarket.com.

U.S. home sales rose in May, as did April home prices. May’s retail sales also beat consensus estimates, while the jobs report for the same month beat expectations, with 339,000 new jobs being added to the U.S. economy. This influx of positive data has also led to a rise in air travel, with more U.S. travelers going on vacation than in 2019 in seven of the last 10 days.

Consumers are becoming more optimistic regarding the likelihood of an incoming U.S. recession. 69.3% of consumers in June said a recession in the next 12 months is “somewhat” or “very likely,” compared to 72.2% in May.

Jefferies US economist Thomas Simons wrote in a note to investors that, “consumer attitudes remain resilient.” He explained that while there are still economic concerns plaguing the U.S., consumers are becoming less frightened of the prospect of an impending recession.

The post Strong Economic Data Extinguishes Recession Fears appeared first on theprimarymarket.com.

The investment giant’s decision to lower its recession odds is driven by the cooldown in market concerns as the banking sector continues to stabilize following March’s crisis which saw the start of the collapse of a slew of U.S. banks.

Also considered was the nation’s GDP growth, with a forecast of 1.8% for 2023. “We have become more confident in our baseline estimate that the banking stress will subtract only a modest 0.4 percentage points from real GDP growth this year,” Jan Hatzius, Goldman’s chief economist stated in anote. “Regional bank stock prices have stabilized, deposit outflows have slowed, lending volumes have held up, and lending surveys point to only limited tightening ahead.”

The post Goldman Reduces U.S. Recession Probability Following Debt Deal appeared first on theprimarymarket.com.

U.S. GDP growth was 1.3% in the first quarter of 2023, meaning that U.S. economic growth is yet to collapse since the coronavirus pandemic. Several major U.S. corporations reported strong Q1 earnings, with specialty clothing retailers Abercrombie & Fitch and Urban Outfitters reporting significant sales rises while Nvidia and Palo Alto Networks reported upbeat earnings forecasts, signaling that business-to-business sales are also proving strong.

Although a group of economists from Citi stated on Thursday that further rate hikes from the Federal Reserve may be needed in order to cool inflation, Fed Chair Jerome Powell revealed that there is a possibility that the central bank may pause its rate hikes, stating that he prefers to keep his options open ahead of the next policy meeting.

Federal Reserve Bank of Boston President Susan Collins expressed hope that rate hikes could be tamed, explaining: “While inflation is still too high, there are some promising signs of moderation. I believe we may be at, or near, the point where monetary policy can pause raising interest rates.”

The post GDP, Jobs Data Subside Recession Fears appeared first on theprimarymarket.com.

This assessment comes after American Express announced its fourth-quarter results. Net sales for the company were $14.2 billion, falling marginally short of expectations of $14.21 billion in sales. AmEx shares rose 5% following the announcement.

Sales for the company’s U.S. consumer services and commercial segments proved strong, rising 23% and 15% respectively. With full-year sales growth of 15% to 17%, the company’s earnings are expected to be in the region of $11 to $11.40; thus exceeding analysts’ estimates of $10.52.

When questioned about the company’s sales for the fourth quarter, Squeri stated that a weakness in small business spending was detected, thereby leading to results narrowly missing estimates.

Bank of America CEO Brian Moynihan echoed Squeri’s assessment of the likelihood of an incoming recession, despite BoA remaining in the “mild” recession category. “They’re spending nicely. The money in their accounts continues to be solid,” Moynihan said of his company’s clients’ spending patterns.

The post AmEx CEO Insists That Recessionary Signals Not Present appeared first on theprimarymarket.com.

Among the indexes that were hardest hit was the Stoxx Europe 600 that plunged by 0.9% on Thursday morning’s early trading session. The 10-year treasury yield also experienced a significant drop to its lowest level since September.

Following the shortlived rally arising from optimism due to China’s economic reopening, stocks have fizzled as economic data exhibiting slowdowns in other regions emerges.

Sailesh Jha, the chief economist and head of market research for RHB Banking Group, offered the following analysis: “This weakness in equity markets will continue a bit longer in this first quarter of the year as the market reprices what the Fed will do.”

Copper declined by 1.2% in London trading, while oil fell for a second consecutive day as U.S. recession worries persist. Spot gold advanced by 0.2% to $1,908.60 per ounce.

The post Treasures Rise and Stocks Weaken Amid Recession Concerns appeared first on theprimarymarket.com.

In response, St. Louis Fed President James Bullard recommended that he and his colleagues raise interest rates above 5% in an effort to suppress inflation as much as possible following the reading.

The Commerce Department stated in its report that retail sales on a whole fell by 1.1% last month, thereby exceeding analysts’ forecasts of a 0.8% decline. The Producer Price Index declined by 0.5% last month; the largest monthly drop since the pandemic.

The Nasdaq Composite experienced a 0.2% drop, while the S&P 500 and the Dow Jones Industrial Average fell by 0.4% and 0.7% respectively.

As economic conditions tighten, Microsoft announced its decision to cut 10,000 jobs in an effort to cut costs. Shares in United Airlines fell after the U.S. major carrier reported better-than-expected earnings during the final quarter of 2022.

The post U.S. Stocks Decline Following Caution of “Earnings Recession” appeared first on theprimarymarket.com.

American Express recently shared a positive second-quarter report that shows the company recording a 31% increase in sale numbers compared to 2021 while also beating the Wall Street estimates with room to spare. This included $13.4 billion in net sales compared to $12.51 billion expected and $2.57 diluted earnings per share vs. $2.39 estimated.

Speaking with Yahoo Finance, Squeri said that these numbers are making it hard for him to recognize that a recession is coming.

“We’re acquiring spending, and we see future travel bookings [strong] so I don’t see it in my numbers at all,” Squeri said. ” … It’s really hard for me to get my head around that in quarter three or quarter four we’re going to have a big slowdown.”

After the company disclosed its Q2 numbers, the Amex stock jumped 6% on Friday morning after closing at $150.21 per share on Thursday. However, the surge proved to be short-lived as the shares dropped to $153.01 by the end of the day.

The post American Express CEO on Recession: “I Don’t See It In My Numbers At All” appeared first on theprimarymarket.com.