Wall Street Breakfast GDP cools as firms prep for tariffs
Jan 30, 2025
U.S. GDP growth slows to an annual rate of 2.3%, raising concerns about consumer spending and potential tariffs. UPS adjusts its delivery contract with Amazon, prompting discussions on future strategies. The TikTok bidding war heats up again amidst shifting market interests. Meanwhile, Comcast struggles with subscriber losses, while Altria announces a stock buyback despite disappointing earnings. The podcast also highlights a notable market transition from tech focus to emerging opportunities in healthcare.
AI Snips
Chapters
Transcript
Episode notes
Q4 GDP Growth Slows
- Q4 GDP growth slowed to 2.3%, down from 3.1% in Q3, and below the 2.6% consensus.
- Consumer and government spending increases were partially offset by an investment decline, while inflation saw a slight uptick.
Tariff Impact on GDP
- Firms stocked up on inventory to avoid potential 2025 tariffs, negatively impacting GDP.
- Excluding inventory and trade, growth reached 3.1%, offering a clearer view of the economy's direction.
Diminishing Fed Influence
- The Federal Reserve's policy has shifted from preemptive to reactive easing, lessening its influence on stocks.
- The "Fed put," a safety net for risk assets, is diminishing as economic data remains robust.