I’m looking for answers to two big questions that earnings from Amazon (AMZN) and Caterpillar (CAT) left us with last week. In the case of Amazon, where the company reported a slide in revenue growth after a big bump in sales due to everybody ordering everything on line during the Pandemic shutdown, the question is What is the actual sales growth trend once you remove all the plus and minuses from the Pandemic? This isn’t a question just for Amazon, of course. It’s important for figuring out the valuation of everything from Las Vegas hotel and casino play MGM Resorts International (MGM) to streaming champion Netflix (NFLX) to Starbucks (SBUX). The other question left hanging at the end of the week is whether or not we’re about to see a string of companies forecasting lower margins due to rising prices for raw materials. That was the takeaway message from Caterpillar’s (CAT) earnings report.
I’m starting up my videos again–this time using YouTube as a platform. My thirty-seventh YouTube video “QuickPick: Shimano”-went up today.
Q2 GDP grew by an annualized 6.5%, which gets the economy back to where it was before the pandemic–now for the tough part
U.S. gross domestic product grew 1.6% in the second quarter of the year, the Commerce Department said today, July 29. That’s up from 1.5% growth in the first quarter of 2021. On an annualized basis, second-quarter growth was 6.5 percent. Which brings the economy back to where it was before the pandemic (adjusted for inflation.) That’s a remarkable quick rebound. After the Great Recession ended in 2009, it took two years for the economy to recover the ground that it has lost. But the recovery now faces two tougher jobs: replacing all the growth that didn’t happen because of the pandemic and fixing problems like anemic productivity growth and soaring economic inequality that troubled the U.S. economy before the pandemic recession. .
Senate Democrats and Republicans on Wednesday appeared to clinch a deal that would invest roughly $1 trillion into the nation’s infrastructure. The new agreement — announced separately by two of its lead negotiators, Senators Rob Portman (R-Ohio) and Kyrsten Sinema (D-Ariz.), ends the wrangling over the policy specifics in a bipartisan infrastructure deal outlined back in June. The agreement puts the Senate on track to hold a key procedural vote today, July 28, that would allow the chamber to actually begin debating the contents of the infrastructure measure
I’m starting up my videos again–this time using YouTube as a platform. My thirty-sixth YouTube video “Is China un-investable?”-went up today.
No change. But change coming someday. (Not soon, though.) That was the message from today’s meeting of the Federal Reserve’s Open Market Committee.