U.S. growth projected lower, Tiffany & Co. (TIF) shares higher and General Motors (GM) moving SRX production to Tennessee

Markets were heading slightly higher on Wednesday morning after U.S. growth was forecast to rise a minimal 1.5% this year. The Congressional Budget Office announced that they are projecting slower growth, which was only underscored by the slow performance during the first quarter of the year. This is lower than the 2.6% projection that was reported in July by the White House. Throughout the first-quarter of the year the economy expanded at a 0.9% rate. For the coming year, the CBO said they are expecting growth of 3.4% during 2015 and 2016. They also added that they are expecting unemployment to drop below 6%. Maryland Representative, Chris Van Hollen, said, “There is no question we have made progress – businesses have added 9.9 million jobs over 53 straight months of job growth. But there is more we need to do.”

Shares of Tiffany & Co. (TIF) were rising after the company reported that profits had grown over 16% during the second-quarter. The company partially attributed the rise to growing sales overseas. Same-store sales were up 3%, while earnings came in at $124.1 million, or $0.96 per share, beating out analysts’ expectations of $0.85 per share. The company also increased their full year expectations from the original forecast of $4.15 to $4.25 per share, to between $4.20 and $4.30 per share. Michael Kowalski, CEO of the company, said, “These healthy second-quarter results reflected solid sales growth in our stores, particularly in the Americas and Asia-Pacific regions. In addition, an improved grow margin was an important contributor to the earnings growth.”

Shares of General Motors Company (GM) were trading slightly lower after the company announced that they would begin building the SRX crossover in Spring Hill, Tennessee. The vehicle is currently being produced in Mexico. The company will be investing nearly $191 million into the plant. This will help nearly 415 jobs in the United Auto Workers union. Cindy Estrada, Vice President for the UAW, said, “We are pleased with the opportunity to continue to work with the Spring Hill and Bedford leadership to build world-class quality products, which will include the new Ecotech engine program, and are looking forward to the next-generation Cadillac SRX being returned to the USA.”

That’s all for today,

Warren Gates, Normandy Research

Share your thoughts...

We encourage people to join in on the discussion. Please keep in mind however, that all comments are moderated according to our comment policy, and all links are nofollow. Let's keep the conversation professional and meaningful.