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DJIA Futures: +109 (+0.3%)
SPX Futures: +22 (+0.5%)
NASDAQ Futures: +97 (+0.6%)
Good morning friends!
Futures are up as the November rally resumes.
Let’s get right to it!
The U.S. economy expanded at a stronger pace than initially estimated in the third quarter.
The Commerce Department’s first revision of Q3 GDP was increased to 5.2% annualized growth vs 4.9% initially reported.
Consumer spending was revised lower to 3.6% vs 4% previously.
Business investment was revised higher to 2.4% vs 0.8% originally.
But the robust growth was short-lived as the economy has cooled in Q4 with businesses hiring less people and consumer spending softening.
GDP is on track to expand 1% to 2% annually in the current quarter.
General Motors (GM) shares are up 9.1% ahead of the open after the company announced plans for a stock buyback and to boost its dividend.
The automaker will buy back $10 billion worth of its stock in an accelerated program.
That includes the immediate purchase of $6.8 billion worth of common stock.
GM also announced it will increase its quarterly dividend by 33% next year to $0.12 per share.
The company also reinstated 2023 guidance after reaching a labor agreement with the United Auto Workers Union.
Here are the details of that guidance:
CEO Mary Barra said the automaker is finalizing a 2024 budget that will “fully offset the incremental costs of our new labor agreements. The long-term plan we are executing includes reducing the capital intensity of the business, developing products even more efficiently, and further reducing our fixed and variable costs.”
Dollar Tree (DLTR) shares are down 1.8% in premarket trade after missing Q3 expectations and narrowing its full-year guidance.
Here’s how the discount retailer’s results compared to analysts’ estimates:
Same-store sales grew 3.9% year over year vs 5.3% growth expected.
Dollar Tree now expects full-year EPS between $5.81 and $6.01 vs $5.78 to $6.08 previously.
The retailer forecast full-year revenue of $30.5 billion to $30.7 billion vs $30.6 billion to $30.9 billion previously.
The CFO said in a press release, “Our current outlook takes into consideration several factors including continuing strength at the Dollar Tree banner, incremental freight savings, softer demand from low-income households, and a continuation of the shrink and sales mix headwinds we have seen throughout the year.”
Foot Locker (FL) shares are rallying 13.2% ahead of the open after beating Q3 expectations on the top and bottom line.
Here’s how the shoe retailer’s results compared to analysts’ estimates:
Same-store sales fell 8% year over year, better than the 9.7% drop analysts were anticipating.
Foot Locker said it now expects full-year revenue to drop by 8% to 8.5% vs the previous forecast for an 8% to 9% drop.
The retailer forecast same-store sales will decline 8.5% to 9% vs previous guidance of a 9% to 10% drop.
Foot Locker now sees full year adjusted EPS of $1.30 to $1.40 vs $1.30 to $1.50 previously.
Mortgage demand rose again last week as rates continued to fall.
The Mortgage Bankers Association reported total application volume was up 0.3% on a weekly basis.
Purchase applications rose 5% weekly and were 19% lower year over year.
Refinance applications tumbled 9% weekly and were 1% higher than a year ago.
The average 30-year fixed contract rate decreased to 7.37% from 7.41%, the fourth decrease in the past five weeks.