GDP misses expectations once again, despite increased health care spending

February 28, 2017

Stocks slipped in trading on Tuesday as investors await policy details in President Donald Trump's address to Congress.

The Dow broke its streak of 12 straight days with a record high close, meaning it will fall short of the longest such streak of 13 days set in 1987.

We've got all the headlines, but first, the scoreboard:

GDP missed again. The measure of the overall state of the US economy missed in its second print for the fourth quarter, according to the Bureau of Economic Analysis. The reading came in at 1.9% growth, lower than the 2.1% expected by economists. Personal consumption growth increased to 3.0% from the initial print of 2.5%, but mostly on the back of increased medical spending.
Consumer confidence jumped to a 15-year high. The Conference Board's measure of consumer confidence increased to 114.8 for February, the highest since July 2001.
Trump told Fox News he thinks a "revved-up economy" could hit 3% GDP growth. In explaining how he can produce enough tax receipts to fund his proposed $54 billion increase in the defense budget, Trump said his policies will create growth to make up for it. "I mean you look at the kind of numbers we're doing, we were probably GDP of a little more than 1%, and if I can get that up to 3 or maybe more, we have a whole different ball game," said Trump.
Target missed on sales, earnings, and guidance. Earnings came in at $1.45 a share against expectations of $1.51 per share. Additionally, the retailer said sales fell by 1.5% for the quarter, below analyst projections of 1.3%.

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