Wall Street Breakfast 'Economy slowing, but still clearly growing'
Aug 28, 2025
Lumber futures are teetering on the edge of bear territory as a tariff-driven rally loses steam. Meanwhile, Snowflake and HP see gains after positive earnings reports. The U.S. GDP growth has been revised higher, highlighting a complex economic landscape. Additionally, Teva gains FDA approval for a generic version of Novo's weight loss drug. In housing news, pending home sales dipped by 0.4% in July, landing below expectations. There's plenty to unpack in this intriguing blend of economic indicators and corporate highlights!
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Lumber Market Slip Nears Bear Threshold
- Lumber futures have fallen nearly 19.5% from early August highs, teetering on technical bear-market territory.
- The tariff-driven rally faded as housing demand weakened and builders scaled back due to higher costs and affordability challenges.
Tech Earnings Show AI And PC Strength
- Snowflake gained after earnings on accelerating sales and AI momentum, prompting analysts to lift targets and ratings.
- HP beat quarterly expectations and PC strength may keep its top line positive despite softer print fundamentals.
GDP Revised Up, Economy Still Growing
- US GDP growth was revised up to a 3.3% annual rate, driven by stronger investment and consumer spending.
- Core PCE remained at 2.5%, and economists conclude the economy is slowing but still clearly growing.