Markets closed higher yesterday but off their highs of the day. We are within striking distance of new highs, so we will have to see where the data and earnings take us.
First quarter Gross Domestic Product came in at 2.5%, a little lower than expected. Consumption was up 3.2% which was a good number. This number is a pick up from last quarter. Growth continues but it continues to be on the slow side.
On the earnings front:
Grocery store operator Safeway, reported higher profits in Q1. Profits rose 63% from a year earlier. Sales were flat. Safeway operates 1600 locations.
Oregon chip maker, TriQuint Semiconductor, posted a supersized loss of $28 million in the latest quarter as sales cratered. Nearly one-third of the company’s sales are for Apple iPhones. TriQuint also took a $5 million charge for undisclosed quality issues. The company says they expect sales to pick up in the second half of the year.
Medford based Lithia Motors posted a quarterly profit of $22 million as sales climbed 22%. Lithia is the nation’s 9th largest auto retailer with 88 stores in 11 States. The company shed $22 million in debt during the quarter.
Join us Saturday at 10 for Financial Focus when we explore this week’s mini flash crash.
The S&P 500 is down 7 and the NASDAQ is down 8.
Oil is down 50 cents at $93.25 a barrel.
Gold is up $4 at $1466 a Troy ounce.