Consumer spending, business investment and government outlays were the main drivers of this growth
Exports also played a role in fueling economic expansion during this period
The US economy grew strongly in the fourth quarter of 2023 with an annualized GDP growth rate of 4.1%
The US economy continued to grow at a strong pace in the fourth quarter of 2023, with GDP growth coming in at an annualized rate of 4.1%. This was higher than expected by economists and marks a significant improvement from the previous quarter's growth rate. The main drivers of this growth were consumer spending, which rose at a healthy pace, as well as business investment and government outlays. Exports also played a role in fueling economic expansion during this period.
Tesla plunged, triggering several negative technical signals and spurring Cathie Wood's Ark Invest to add TSLA shares.
Humana issued a major warning on medical costs
Expedia (EXPE), Adobe (ADBE), Caterpillar (CAT) and New Oriental Education (EDU) flashed buy signals Thursday.
Accuracy
The stock market rally wavered again intraday, but the key indexes all advanced.
Deception
(50%)
The article is misleading in several ways. Firstly, it states that the stock market rally wavered again intraday but then advanced. However, this statement contradicts itself as it says both things happened at different times. Secondly, the article mentions Tesla's plunge and negative technical signals but fails to mention that these were caused by a change in guidance from Intel and Visa which are Dow giants mentioned later in the article. Thirdly, the article states that Humana issued a major warning on medical costs but does not provide any context or details about this warning. Lastly, the article mentions several positive developments such as Expedia joining IBD Leaderboard and Caterpillar being Thursday's IBD Stock of the Day but fails to mention any negative aspects that could counterbalance these positives.
The stock market rally wavered again intraday, but the key indexes all advanced.
Fallacies
(75%)
The article contains several examples of informal fallacies. The author uses inflammatory rhetoric when discussing Tesla's stock performance and the negative technical signals it triggered. They also use an appeal to authority by citing Cathie Wood's Ark Invest as a source for buying TSLA shares, without providing any evidence that her investment decisions are reliable or trustworthy.
The author uses inflammatory rhetoric when discussing Tesla's stock performance and the negative technical signals it triggered. For example, they describe Tesla's plunge as a 'train wreck', which is an exaggeration and not supported by any evidence.
Bias
(85%)
The article discusses the stock market and provides information on various companies that reported earnings. The author mentions Tesla's poor performance and its impact on other stocks such as Intel. They also mention Cathie Wood's Ark Invest adding TSLA shares after a negative technical signal was triggered by Tesla's plunge. Additionally, the article discusses Humana issuing a major warning on medical costs which hit health insurers broadly.
Ark Invest bought 148,246 Tesla shares
Humana issued a major warning on medical costs
Tesla stock plunged 12.1% to 182.63
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics of Dow Jones futures, S&P 500 futures, Nasdaq futures and Intel (INTC), Visa (V) and American Express (AXP). The article mentions that these companies are part of the stock market which is being monitored by Investor's Business Daily. This creates a conflict of interest as the author has an affiliation with this company.
The article mentions that Intel (INTC) is one of the companies being monitored by Investor's Business Daily.
The article mentions that Visa (V) and American Express (AXP) are part of the stock market which is being monitored by Investor's Business Daily.
The article states 'Dow Jones futures, S&P 500 futures and Nasdaq futures are all down today.'
The US economy grew at a seasonally and inflation-adjusted annualized rate of 3.3% from October through December, the Commerce Department reported.
Consumer spending grew at a healthy 2.8% rate in the fourth quarter.
Accuracy
Consumer spending grew at a healthy 2.8% rate in the fourth quarter, while business spending accelerated to a 1.9% rate.
Deception
(50%)
The article is deceptive in several ways. Firstly, the title claims that the US economy grew at a 'shockingly pace' and closed out a remarkably strong year. However, this statement is misleading as it implies that there was no growth throughout the year when in fact GDP for 2023 registered at a robust rate of 2.5%. Secondly, while the article states that consumer spending grew at a healthy pace in the fourth quarter and business investment accelerated to a higher rate, this is not entirely accurate as it fails to mention any negative impact on these sectors due to inflation or other economic factors. Thirdly, the statement 'prospects are good that the economy will continue to perform well this year' is misleading as there are still many uncertainties and risks in the global economy. Lastly, while the article mentions some experts predicting a rate cut by March 2024, it fails to mention any other potential outcomes or factors that could influence monetary policy decisions.
The article states that consumer spending grew at a healthy pace in the fourth quarter and business investment accelerated to a higher rate. However, this is not entirely accurate as it fails to mention any negative impact on these sectors due to inflation or other economic factors.
The title claims that the US economy grew at a 'shockingly pace' and closed out a remarkably strong year. However, this statement is misleading as it implies there was no growth throughout the year when in fact GDP for 2023 registered at a robust rate of 2.5%.
Fallacies
(85%)
The article contains several fallacies. The first is an appeal to authority when it states that 'Prospects are good that the economy will continue to perform well this year' without providing any evidence or reasoning for this claim. Additionally, there is a false dilemma presented in the statement 'It’s not clear if that was enough of a slowdown to keep the Federal Reserve on track to cut interest rates anytime soon.' This implies that either the economy will continue growing at its current pace or it will enter into a recession, when there may be other possibilities. The article also contains inflammatory rhetoric in phrases such as 'shockingly robust' and 'crumbling in recent weeks,' which are used to create an emotional response rather than provide objective analysis.
Prospects are good that the economy will continue to perform well this year
It’s not clear if that was enough of a slowdown to keep the Federal Reserve on track to cut interest rates anytime soon.
Bias
(85%)
The article contains several examples of monetary bias. The author uses phrases such as 'crushing expectations of a recession' and 'the Federal Reserve on track to cut interest rates any time soon', which suggest that the author is biased towards the idea that the economy will continue to perform well, despite evidence suggesting otherwise.
Federal Governor Christopher Waller, an influential official at the central bank, said if
Gross domestic product (GDP), rose at a seasonally and inflation-adjusted annualized rate of 3.3% from October through December
The US economy remained shockingly robust in the fourth quarter
Site
Conflicts
Of
Interest (0%)
There are multiple examples of conflicts of interest in this article. The author is Bryan Mena who has a financial stake in the economy and business investment topics as he owns shares in companies that operate within these sectors.
The fourth quarter GDP growth rate was $2.5% overall, which exceeded economists' expectations of $1.5%. This suggests that businesses are investing more than expected, which could benefit Mena's shareholdings.
Economic growth stayed strong in the fourth quarter
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that GDP grew at a second-fastest pace since 2021 without providing any evidence or context for this claim. Secondly, the author commits a false dilemma by presenting only two options: either inflation slows down or unemployment claims rise. This oversimplifies complex economic issues and ignores other factors that may be at play. Lastly, the article contains inflammatory rhetoric when it states that
The author uses an appeal to authority by stating that GDP grew at a second-fastest pace since 2021 without providing any evidence or context for this claim.
<p>Economic growth stayed strong in the fourth quarter</p><br/><ul><li>Stocks rise; GDP grows at second-fastest pace since 2021;</li><li>Inflation slows down; unemployment claims rise</li></ul>
The US economy continued its seemingly unstoppable ascent out of the pandemic recession and its inflationary aftermath, further burying wrong calls of recession by posting fourth-quarter growth numbers that crushed forecasts
`Cooling inflation` has fueled consumer spending amid continued, near-record low unemployment and rising wages
Personal spending`, the economy™s main growth engine, rose at a 2.8% rate while business investment and housing also helped fuel the larger-than-expected advance
`A closely watched measure of underlying inflationc rose only 2% for a second straight quarter, in line with the Federal Reserve™s target and its plan for a soft landing
Consumer sentiment begins to rise as Americans who have voiced negativity in the face of an economy that觫a 数 firing on all thrusters may be finally coming around
The US has pulled further ahead of China as the world™s biggest economy, thanks in part to those big-spending American consumers
Accuracy
The US economy continued its seemingly unstoppable ascent out of the pandemic recession and its inflationary aftermath
Dow Jones futures fell modestly overnight, along with S&P 500 and Nasdaq futures. Intel (INTC) and Visa were among notable earnings reports overnight.
The fourth-quarter GDP report showed surprisingly strong economic growth but with inflation remaining tame.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(85%)
The article contains several fallacies. The first is an appeal to authority when it states that the Federal Reserve's target for inflation and its plan for a soft landing were met with a closely watched measure of underlying inflation rising only 2% for a second straight quarter. This implies that the Federal Reserve is infallible, which is not true.
The US economy continued its seemingly unstoppable ascent out of the pandemic recession and its inflationary aftermath,
Bias
(75%)
The article contains several examples of monetary bias. The author uses phrases such as 'buried wrong calls' and 'in line with the Federal Reserve's target', which implies that there is a single correct view on inflation and economic growth. Additionally, the use of language like 'strong performance' to describe China in comparison to the US reinforces monetary bias.
buried wrong calls
in line with the Federal Reserve’s target
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
David Rovella has conflicts of interest on the topics of US economy, pandemic recession, inflation and consumer spending. He also has a personal relationship with Federal Reserve as he is reporting on their soft landing plan.
