Income growth lags behind consumer spending

  • Consumer companies rise after strong consumer-spending data
  • U.S. personal spending increases by 0.7% in December
  • Income growth lags behind spending growth
  • January jobs data to be released next week
  • JetBlue Airways may terminate takeover of Spirit Airlines
  • Colgate-Palmolive reports better-than-expected sales in Q4

Consumer companies saw a boost in stock prices following the release of strong consumer-spending data. According to the Commerce Department, U.S. personal spending increased by 0.7% in December. However, one strategist warns that income growth is not keeping up with spending growth, which raises concerns for the upcoming release of January jobs data. The market will closely assess the employment data to determine if consumer spending can continue at its current pace. In other news, JetBlue Airways may terminate its attempted takeover of Spirit Airlines after a federal judge’s ruling blocked their planned merger. On a positive note, Colgate-Palmolive reported better-than-expected sales in the fourth quarter, driven by sales growth in its Latin America division.

Public Companies: JetBlue Airways (JBLU), Spirit Airlines (SAVE), Colgate-Palmolive (CL)
Private Companies:
Key People: Quincy Krosby (Chief Global Strategist)

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Factuality Level: 8
Justification: The article provides specific information about U.S. personal spending rising 0.7% in December, as reported by the Commerce Department. It also includes a quote from a strategist discussing the importance of employment data for assessing the economy. The article also mentions JetBlue Airways warning about terminating its attempted takeover of Spirit Airlines and Colgate-Palmolive’s better-than-expected sales in the fourth quarter. Overall, the article provides factual information without any obvious bias or inaccuracies.

Noise Level: 6
Justification: The article provides relevant information about consumer spending data and its impact on the market. However, it includes unrelated information about JetBlue Airways and Colgate-Palmolive, which adds noise to the article.

Financial Relevance: Yes
Financial Markets Impacted: Consumer companies

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the rise of consumer companies after strong consumer-spending data, indicating potential impact on financial markets. There is no mention of an extreme event.

Reported publicly: www.marketwatch.com