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Jobless Claims Solid, More Q2 Earnings: GM, ADM, DNKN

Mark Vickery

Thursday, August 1, 2019

Initial Jobless Claims this Thursday bumped up by a total of 8000 on the week: from an upwardly revised 207K two weeks ago to 215K last week. This remains well within the sweet spot of a robust domestic labor market. In fact, as other employment metrics have shown some volatility in recent months, the times new claims have jumped out of their several-quarters-long 200-225K range are few and far between.

Continuing Claims also ratcheted up a bit, from 1.671 million reported last week to 1.699 million this morning. This has been a rather astonishingly good statistic for a very long time — not only well below the psychologically satisfying 2 million, but beneath 1.7 million for the past few months.

We will get a more definitive read on U.S. employment tomorrow when the non-farm payroll report from the Bureau of Labor Statistics (BLS) is released before the opening bell. Expectations are for around 160-170K new jobs created in the month, up from yesterday’s private-sector employment survey of 156K new jobs.

Though as we saw from the initial Q2 read on Gross Domestic Product (GDP), government spending came out much higher than expected in the last quarter. Perhaps this will spill over into tomorrow’s BLS numbers, but in any case, we do not appear to be enjoying the 200K+ new jobs per month we’ve seen over the past several years.

Q2 Earnings Roundup

General Motors GM beat estimates in its latest quarterly report by 20 cents to $1.64 per share. Revenues slightly topped expectations as well, with $36.1 billion outpacing the $35.98 billion analysts were anticipating. Results were based on North American strength in the quarter. However, the company did not revise forward guidance. This has not stopped early traders from bidding up 2.8% in the pre-market.

Archer Daniels-Midland ADM missed estimates by a penny to 60 cents per share, way down from $1.02 per share in the year-ago quarter. Revenues, on the other hand, were up 4.28% to $16.30 billion in the quarter, though this still pales to $17.07 billion a year ago. Shares for the Zacks Rank #4 (Sell)-rated company are not budging in the pre-market, pretty much the way they’ve been year to date. For more on ADM’s earnings, click here.

Dunkin’ Brands DNKN topped expectations in its Q2 earnings report by 4 cents to 86 cents per share. Sales missed estimates by 0.5% to $359.34 million, up from $350.6 million a year ago. Shares had bid up higher than the S&P 500 year to date, but are not yet moving on the earnings news. For more on DNKN’s earnings, click here.

Mark Vickery
Senior Editor

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