A government report on U.S. economic output in the first quarter will shed light on how consumers and businesses are faring under high inflation, rising interest rates and the onset of banking problems. Consumer spending, the primary driver of growth, and hiring were surprisingly strong at the start of the year, but more recently slowed as the Federal Reserve continued raising interest rates to cool the economy and curb rapid price increases. TO WIT:
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Meta's "Year of Efficiency" is off to a strong start: After three straight quarters of falling revenue last year, the company saw an uptick in ad sales for a 3% revenue jump from Q1 2022. Profits were down, but the company still beat expectations, and Facebook gained users again after losses last year. But not all of Mark Zuckerberg's dreams are coming true—the company's Metaverse unit lost almost $4 billion last quarter.
Chipotle—which hit near all-time highs after saying customers kept coming back for burrito bowls despite price increases.
The UK's competition regulator blockedMicrosoft's bid to acquire the Call of Duty-maker saying it would hurt competition in the cloud gaming sector. The move came as a shock because the regulator had previously said Microsoft had assuaged its concerns about the console gaming market. The decision, which Microsoft plans to appeal, puts a strain on the deal while the companies wait for competition decisions from the EU and the US, where the FTC has already sued to scuttle it.
Finally, while egg prices have fallen dramatically, one sector of the economy remains stubbornly expensive: rents.
In the latest consumer price index report, the shelter category (aka rents) was the largest contributor by far to overall inflation. And despite moderating in recent months, rent growth remains 17% higher than 2021 levels.
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