A gym membership in the United States typically expenditures all-around $50 a thirty day period. Boutique fitness centers and significant-depth courses run double and triple that.
Planet Conditioning, however, has provided $10 every month memberships for 30 decades. The no-frills gym chain has not raised the rate, earning it one of the couple points that nonetheless costs the identical despite the best inflation in a long time.
Planet Health and fitness blares out the $10 gym prepare, which contains yearly charges and free of charge instruction, in commercials, and the enterprise has extended sponsored the New Year’s Eve celebration in Occasions Square to get persons contemplating about signing up for memberships as their resolution.
That practically sacrosanct $10 cost has develop into a key element of the company’s brand positioning as an obtainable, “judgment-free” club conducive to informal health club goers. Earth Exercise customers generally go 5 or six situations a thirty day period, and all around 60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of them really don’t go to in a 30-working day stretch.
“It’s a very potent marketing instrument,” mentioned Simeon Siegel, who addresses the corporation at BMO Funds Marketplaces. The $10 rate is appropriate in the sweet place, he stated: low-priced plenty of to attract individuals to Earth Conditioning who want to get in condition and, equally as significant, not so pricey that they will cancel if they really do not go typically.
For $10 a thirty day period, rare users are likelier to hold on to the membership to say they belong to a health and fitness center somewhat than give up, he stated.
Earth Health and fitness employs $10 dues, which can be canceled at at any time, to recruit men and women who are fascinated in working out, but have never joined a gym prior to, are intimidated by health fanatics at other fitness centers or can not afford to pay for pricier clubs. The organization believes $10 is an entryway for the around 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Individuals who do not belong to a health club.
This low-cost fitness center membership product – recognised in the health market as substantial volume, reduced selling price, or “HVLP” – is also tailored to attractiveness to substantial-college learners accompanied by a dad or mum, faculty learners and individuals recovering from an harm or surgical procedure, stated Rick Caro, the president of Administration Vision and longtime conditioning sector expert.
“It’s a ‘get you off the couch’ selling price,” stated Christopher Rondeau, the main government of World Fitness
(PLNT), which has grown to far more than 2,300 fitness centers nationwide and attained a history-substantial 16.6 million associates last quarter. “You’re not going to give one thing a attempt for the very first time and spend $50, $60, $70,” he said.
World Health and fitness does not system to raise the $10 price anytime quickly. Rather, it will hold down the value by receiving men and women to trade up to its $24.99 month to month “Black Card” membership with more perks.
“The lengthier I can continue to be at $10 the better off I am to get persons off the sofa, give conditioning a test and keep on to generate much more benefit in the Black Card,” explained Rondeau.
The higher-priced monthly strategy gives access to all of Planet Fitness’ fitness centers and perks like h2o therapeutic massage beds, massage chairs and tanning machines, and Black Card associates can also deliver a visitor.
Much more than 60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of customers subscribe to this tier, which World Physical fitness greater by $2 a thirty day period earlier in the year. The normal Earth Conditioning member pays close to $17.60 a thirty day period, assisting the firm continue to keep the reduce program at $10.
“It’s not that diverse from other enterprises that entice you with a reduced price tag level and then upsell you with larger selections,” explained Joseph Altobello, an analyst at Raymond James.
To attractiveness to occasional gym goers, Earth Fitness’ clubs also have much more cardio and mild energy tools than numerous rivals and fewer heavy totally free weights. Earth Conditioning discourages what it calls “lunk” behavior, such as dropping weights and grunting, and has a “lunk alarm” to reduce people today from dropping them.
Planet Exercise has benefited from the consolidation of the conditioning market for the duration of the pandemic, which has remaining the firm with much less budget-gymnasium competition.
All around 25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of US gyms and studiosforever shut during the pandemic – approximately 10,000 services, according to the market trade group. Quite a few big chains, including 24 Hour Health and Gold’s Fitness center, submitted for individual bankruptcy.
World Physical fitness, however, did not forever close any gyms in the course of the pandemic. This was in large element owing to its franchise health and fitness center model, with some of the fitness centers owned by non-public-equity groups.
The organization has also capitalized on Americans on the lookout to get in condition in the aftermath of the pandemic. Every month visits to US fitness centers are larger than they were being in 2019, in accordance to Placer.ai, which tracks foot traffic to suppliers.
Inspite of the rise of Peloton and the at-house exercises several people today obtained applied to through pandemic lockdowns, at-home exercising is not a danger to Earth Fitness’ $10 design.
“It’s a different client,” Altobello claimed. “Not absolutely everyone has the money or the area to create an at-residence fitness center.”
U.S. shares ended up firmly higher Friday but down for the week as traders assessed every month employment figures that did small to thwart the chance of more intense financial tightening and weighed talks that China may ease COVID limitations.
The S&P 500 (^GSPC) superior 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, even though the Dow Jones Industrial Regular (^DJI) jumped far more than 400 factors, or about 1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The technological know-how-focused Nasdaq Composite (^IXIC) posted a obtain of approximately the exact same magnitude. Nonetheless, all a few main averages ended up down for the week. The Dow concluded down for the initially time in 5 months.
The U.S. financial system included 261,000 careers in Oct, when September’s reading was upwardly revised to 315,000 from 263,000 formerly claimed, the Labor Division explained Friday. Economists anticipated a payroll gain of 195,000 past month, according to consensus estimates compiled by Bloomberg. The unemployment amount ticked up to 3.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
“Today’s much better than expected report illustrates the challenging task that even now lies ahead for the Fed wrestling a resilient labor market and sticky inflation,” Mike Loewengart, head of design portfolio building at Morgan Stanley’s International Investment Place of work, said in emailed comments. “While the quantity may perhaps be disappointing for traders hoping for a dovish Fed sooner instead than later on, retain in brain it was the most affordable examining in almost two a long time, so there could be indications that the market place is slowing.”
Buyers have guess that some indications of a cooling labor market would drive the Federal Reserve to scale back on its aggressive price-hiking marketing campaign, but Chair Jerome Powell asserted Wednesday that slight moderations in the details have been not plenty of for a pause on boosts, with labor conditions however traditionally restricted.
“Although work vacancies have moved down below their highs and the speed of position gains has slowed from before in the calendar year, the labor sector proceeds to be out of harmony, with desire considerably exceeding the offer of accessible staff,” Powell claimed on Wednesday after the U.S. central lender sent a fourth straight fascination price hike of 75 basis details.
In the 3rd quarter of this year, payroll gains averaged 372,000 for each thirty day period. Weekly jobless claims, the most timely snapshot of the U.S. labor industry, have also arrive in consistently reduced, with this week’s examining at 217,000.
“Initial statements are not rising 1 little bit,” DataTrek’s Nicholas Colas stated in a observe. “Simply set, there is continue to no sign that neither aggressive Fed financial policy nor the tighter financial ailments that it has brought is but hitting U.S. labor markets.”
Central banking institutions across the globe have moved in lockstep with the U.S. Federal Reserve to progress with a combative route of financial tightening, increasing fears about the affect of synchronized fee raises. The Bank of England elevated interest costs by 75 basis details on Thursday, whilst European Central Financial institution President Christine Lagarde reported in new remarks that costs could have to have to be raised to restrictive stages to drag inflation again to the 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} target.
Though monetary coverage has held investors’ attention this 7 days, company earnings have continued to hurry in. Shares of Block (SQ) surged 11{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} after the enterprise meaningfully beat estimates on sturdy general performance in its Cash Application and Square payment offerings.
Payments peer PayPal (PYPL), in the meantime, saw shares drop just about 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} right after the corporation slashed its profits forecast to 8.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} from its prior outlook of 18{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, even as it beat on earnings success.
Twilio (TWLO) shares tanked 35{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} right after the cloud communications enterprise skipped on earnings and noted softer-than-predicted steering.
Toymaker Funko’s (FNKO) inventory plunged pretty much 60{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} immediately after the enterprise described a significant earnings miss out on and slashed its once-a-year forecast forward of the holiday getaway time.
In the meantime, shares of Alibaba (BABA) gained 7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} together with a broad rally in Chinese shares amid speculation the region will halt its rigorous zero-COVID policy.
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Alexandra Semenova is a reporter for Yahoo Finance. Abide by her on Twitter @alexandraandnyc
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Buyers are warily eyeing the world strength crunch, the US personal debt ceiling discussion and programs by the US Federal Reserve to wind down some of its pandemic-relevant financial help, among the other things.
By Rita Nazareth and Kamaron LeachBloomberg
Volatility ongoing to roil fiscal marketplaces, with U.S. equities notching their greatest regular selloff considering that March 2020.
Shares pushed reduced on Thursday even right after confirmation that the Dwelling handed a nine-week spending invoice to avert a U.S. government shutdown. For traders, that was just just one within just a litany of risks. Buyers are also bracing for the Federal Reserve to wind down its stimulus amid mounting fears about slowing economic expansion, elevated inflation, supply-chain bottlenecks, a world-wide power crunch and regulatory hazards emanating from China.
Political wrangling in Washington is threatening to force the U.S. into default and drive President Joe Biden to scale back again his spending agenda. Democratic Senator Joe Manchin wishes the social-spending deal reduce by extra than half to $1.5 trillion. Dwelling Speaker Nancy Pelosi was urgent forward with a vote on a bipartisan infrastructure invoice, even even though progressive Democrats reported they have the quantities to stall it till the Senate agrees on a extra expansive tax and spending deal.
“The aged adage, the sector climbs a wall of stress, is not shed on us,” claimed Tom Mantione, managing director at UBS Personal Prosperity Management. “Worries about China, the pandemic, the personal debt ceiling and tax legislation are weighing on traders appropriate now, but it is important to understand which concerns could build structural modify and which kinds create small-time period volatility that investors can get advantage of.”
The S&P 500 shut at the most affordable amount since July, extending its September losses to practically 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Economically sensitive firms like industrials and financials had been among the worst performers on Thursday. The slide virtually wiped out the index’s gains for the quarter.
A close to-report technological streak for the S&P 500 has some bulls anxious that a sharp pullback is overdue.
“The S&P 500 has now gone an incredible 317 buying and selling times in a row higher than its 200-day shifting typical, just one of the longest streaks ever,” according to Ryan Detrick, chief marketplace strategist at LPL Money. “What we are getting at is a 5-7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} pullback could potentially come at any time provided we have not had a single in so extensive.”
In other places, oil closed the month virtually 10{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} better just after a tumultuous session for the duration of which China was stated to buy its prime electrical power businesses to secure electrical power supplies at all expenditures amid shortages, prompting the White Dwelling to reiterate its very own issues about climbing selling prices.
In this article are some occasions to enjoy this week:
Univ. of Michigan sentiment, ISM manufacturing, U.S. construction paying out, spending/private earnings, Friday
Some of the most important moves in markets:
Stocks
The S&P 500 fell 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as of 4 p.m. New York time
The Nasdaq 100 fell .4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
The Dow Jones Industrial Average fell 1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
The MSCI World index fell .6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Currencies
The Bloomberg Greenback Place Index fell .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
The euro fell .1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $1.1581
The British pound rose .4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $1.3475
The Japanese yen rose .6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 111.29 for every dollar
Bonds
The yield on 10-calendar year Treasuries was tiny changed at 1.52{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Germany’s 10-year yield innovative one foundation level to -.20{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Britain’s 10-12 months generate innovative three basis points to 1.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Commodities
West Texas Intermediate crude rose .2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $75.01 a barrel
Gold futures rose 2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $1,756.70 an ounce
Stocks sank on Thursday in the final session of September and the third quarter, with stocks extending a weeks-long streak of volatility as concerns over inflation, the economic backdrop and debates in Washington over a host of measures weighed on equities.
The S&P 500 ended the day lower by 1.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The index fell by more than 4.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in September for its first monthly decline since January, with concerns around fiscal and monetary policy, inflation, regulations in China and the ongoing pandemic all colliding to knock equities from their upward trajectory. Still, the S&P 500 remained up by about 15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the year-to-date through Thursday’s close.
Cyclical stocks, though down during Thursday’s session, led the way higher in September as investors bet on higher inflation and rising rates. A jump in crude oil prices helped make the energy sector by far the best performer in the S&P 500. Financial stocks also outperformed, with rising Treasury yields serving as a tailwind to bank profitability.
The Nasdaq has underperformed over the past month as traders rotated away from the growth and technology stocks that pulled the market higher last year. High-flying technology stocks also got hit as Treasury yields jumped over the past week, with the rising borrowing costs weighing on the valuations of growth companies that rely heavily on expectations of strong future earnings.
“This feels a lot worse than it actually is because we haven’t had much volatility since last October, last September,” Paul Schatz, Heritage Capital President, told Yahoo Finance Live on Wednesday.
“But remember, all the reasons why we’re going down — nothing is new,” he added. “You’ve got the debt ceiling and the government shutdown and Evergrande and inflation. All known things. None of these are going to befall the bull market or cause a recession. There’s always some kind of short-term thing the market focuses on to get a pullback going. We’ve got it. I think it’s one you buy with both hands in the next week or so, and I think we’re going strongly to new highs in Q4.”
Other pundits, however, were less upbeat on stocks given the medley of concerns.
“We think there are several other headwinds, not directly related to [the Fed’s asset-purchase] tapering, that might weigh on the stock market for a while,” Thomas Mathews, markets economist for Capital Economics, wrote in a note on Wednesday. “Among other things, we think its valuation is already fairly stretched, that there is limited scope for further upward revisions to earnings estimates given how far they have come, and that long-dated bond yields may rise for other reasons than tapering.”
“As a result, we expect the U.S. stock market to make fairly limited gains over the next couple of years,” he added.
Thursday night also marks the deadline for Congress to come to an agreement to fund the government beyond the Sept. 30 fiscal year, or else risk a shutdown taking place beginning on Friday. The Senate and House of Representatives each passed a short-term appropriations bill Thursday afternoon to keep the government running through Dec. 3, and have sent the legislation to President Joe Biden for approval.
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4:09 p.m. ET: S&P 500 drops more than 4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Sept. for first monthly decline since Jan.; House passes government funding bill as shutdown looms
Here were the main moves in markets as of 4:09 p.m. ET:
S&P 500 (^GSPC): -51.92 (-1.19{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,307.54
Dow (^DJI): -546.80 (-1.59{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 33,843.92
Nasdaq (^IXIC): -63.86 (-0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,448.58
Crude (CL=F): +$0.11 (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $74.94 a barrel
Gold (GC=F): +$33.70 (+1.96{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,756.60 per ounce
10-year Treasury (^TNX): -1.2 bps to yield 1.5290{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
—
2:02 p.m. ET: Still-low interest rates continue to support company borrowing, IPOs: Suzanne Shank
Even given the run-up in Treasury yields over the past week, rates still remain relatively low on a historical basis, largely supported by the Federal Reserve’s still-accommodative monetary policies. This has, in turn, helped support corporate borrowing and deal-making.
“Interest rates continue to be very attractive. We’re all watching the Fed and have an expectation that rates will rise. So I think companies are really going to market to take advantage of very positive conditions right now,” Suzanne Shank, president and CEO of Siebert Williams Shank, said during an episode of Yahoo Finance Influencers.
These conditions have also helped create a constructive backdrop for burgeoning companies looking to hit the public markets. The second quarter of 2021 was the biggest quarter for initial public offerings in terms of number of deals and total proceeds, according to data from Renaissance Capital.
“I think low interest rates have pushed up valuations for growth companies, and the hundreds of unicorns in the pipeline are looking to take advantage of that,” she added. “And I think we’re seeing companies that both benefited from the pandemic as well as those that are sort of rebooting post-pandemic that have really been sparking this increased deal flow. Earlier in the year, inflation concerns had investors worried that the Federal Reserve might change in policy. But after the Fed said that inflation wouldn’t change over the long-term, it’s really been robust IPO time.”
The three major indexes sank in intraday trading, led by a drop in the cyclical areas of the market most sensitive to economic conditions. The Dow, which contains a number of energy, financial and other cyclical stocks, dropped 400 points, or over 1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
The communication services and information technology sectors outperformed in the S&P 500, though all 11 major sectors were in the red. Consumer staples and industrials lagged.
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11:18 a.m. ET: ‘The market is very fully priced, value stocks are not’: Strategist
September has seen a swift rotation away from growth stocks that had led the market higher throughout 2020. According to at least one strategist, the biggest opportunity for investors is to continue looking away from growth and focusing on value stocks still underpriced by the market.
“The market is very fully priced, value stocks are not,” Rob Arnott, founder of Research Affiliates, told Yahoo Finance Live on Thursday. He suggested value stocks could return 5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} or more over the market over the next five to 10 years.
“One thing people forget is, just like a stock can go up and down relative to its fundamentals, a strategy can too,” he said. “And so value stocks were priced back in 2007 about one-fourth as expensive as growth stocks: A four-to-one ratio. They tumbled. By August of 2020, they had fallen to one-thirteenth the price of growth stocks, cheapening by 70{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} relative to growth, but underperforming by 58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.”
“It’s a huge shortfall. But it’s smaller than the amount by which they got cheaper,” he added. “If they rebound back to a four-to-one ratio, you would see value outperform growth by upwards of 200{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. So that’s what we’re looking at in terms of the magnitude of the rout for value investing.”
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10:41 a.m. ET: ‘We’ve got a market priced for perfection’: Strategist
Stocks have come down sharply in September as a medley of concerns on inflation and the economic recovery, debates among Washington lawmakers, and the ongoing pandemic all came together. These issues could generate more choppiness in an equity market that has already run up more than 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} so far this year, according to some strategists.
“We’ve got a market priced for perfection. The cyclically adjusted PE [price-to-earnings] ratio is at 38.3. Now that’s really high on a historical basis. So that means that stocks are priced for a lot of growth going forward. And there’s a lot to get through,” Leonore Elle Hawkins, chief macro strategist for Tematica Research, told Yahoo Finance Live on Thursday.
“You’ve got a market that’s priced to perfection, and you’ve got an economy that is decidedly not dealing with perfection. We’ve got those supply chain problems. That’s going to take time to work out,” she added. “You’ve also got the labor market, where we’ve got a shift undergoing with people deciding how do they really want to live, and that’s going to take some time to work out. You’ve got these pricing pressures that are going to take time to work out. All of that put together, on top of what’s going on in Capitol Hill.”
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9:58 a.m. ET: Tesla loses fraud case in China, ordered to pay $235,000 in damages: Bloomberg
A Beijing court ordered Tesla (TSLA) to pay $235,000 in damages to a Chinese driver, who sued the electric car-maker over a purchase of a used Model S vehicle, according to a report from Bloomberg on Thursday. The court said Tesla had misrepresented the condition of the Model S vehicle sold to the drive.
The penalty marked a blow for the car-maker, which has faced a string of regulatory and safety concerns in both the U.S. and China in recent months. China has also been a critical electric-vehicle market for Tesla and its competitors.
Shares of Tesla were little changed to slightly higher during intraday trading on Thursday. Shares have risen 6.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} over the past month, outperforming the S&P 500, which has fallen 3.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.
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9:30 a.m. ET: Stocks open higher
Here’s where the three major indexes were trading shortly after the opening bell:
S&P 500 (^GSPC): +20.09 (+0.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 4,379.55
Dow (^DJI): +159.03 (+0.46{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 34,549.75
Nasdaq (^IXIC): +74.79 (+0.55{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,592.83
Crude (CL=F): -$1.22 (-1.63{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $73.61 a barrel
Gold (GC=F): +$16.00 (+0.93{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,738.90 per ounce
10-year Treasury (^TNX): +0.2 bps to yield 1.541{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
—
8:40 a.m. ET: Second-quarter GDP was revised up to a 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized growth rate
U.S. economic output was upwardly revised for the April through June quarter, according to the Bureau of Economic Analysis’ (BEA) third revision on domestic GDP.
GDP rose at a 6.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} annualized pace during the second quarter, compared to the 6.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rate previously reported. The increase tracked a similar upward revision in personal consumption, which rose 12.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the second quarter, instead of the 11.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} rate posted in the prior estimate. Personal consumption comprises about two-thirds of domestic economic activity.
“Upward revisions to personal consumption expenditures (PCE), exports, and private inventory investment were partly offset by an upward revision to imports, which are a subtraction in the calculation of GDP,” the BEA said in its report Thursday.
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8:35 a.m. ET: New weekly jobless claims post unexpected rise, increasing for a third straight week
The number of individuals filing first-time unemployment claims unexpectedly rose last week, signaling some slowing in the labor market’s recovery even as companies across industries looked to bring on more workers to fill vacancies.
New jobless claims came in at 362,000 for the week ended Sept. 25, according to Labor Department data Thursday morning. That was above the 330,000 consensus economists expected, and grew from the unrevised 351,000 filings posted during the prior week.
This week’s report was also the first to account for the national federal expiration of enhanced unemployment benefits, which took place Sept. 6. As of the latest data, just over 5 million individuals were claiming benefits across all programs for the week ended September 11. That compared to 11.3 million individuals on state and federal unemployment programs as of the week ended Sept. 4.
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7:21 a.m. ET Thursday: Stock futures hold onto overnight gains
Here’s where markets were trading ahead of the opening bell:
S&P 500 futures (ES=F): +19 points (+0.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,368.75
Dow futures (YM=F): +144 points (+0.42{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,409.00
Nasdaq futures (NQ=F): +75.25 points (+0.51{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,815.00
Crude (CL=F): -$0.18 (-0.24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $74.65 a barrel
Gold (GC=F): +$0.30 (+0.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to $1,723.20 per ounce
10-year Treasury (^TNX): -0.8 bps to yield 1.5310{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
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6:15 p.m. ET Wednesday: Stock futures rise
Here were the main moves in markets as of Wednesday evening:
S&P 500 futures (ES=F): +6.5 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 4,356.25
Dow futures (YM=F): +51 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}), to 34,316.00
Nasdaq futures (NQ=F): +22 points (+0.15{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}) to 14,761.75
NEW YORK, NEW YORK – SEPTEMBER 16: People walk by the New York Stock Exchange (NYSE) on September 16, 2021 in New York City. Despite a rise in retail sales, the Dow slipped lower on Thursday as investors continue to have concerns from the Delta variant and news of a slight rise in jobless claims. (Photo by Spencer Platt/Getty Images)
