Analysts expected 5.89% growth in the quarter, according to FactSet.
Janet Yellen to Say Security Comes Before Economy in U.S.-China Relationship
WASHINGTON-Treasury Secretary Janet Yellen plans to say Thursday that the U.S.'s policies toward China will give priority to addressing national-security concerns over preserving economic growth.
In prepared excerpts of a speech she will give, Ms. Yellen listed three goals for the U.S. relationship with China: protecting human rights and national security, establishing healthy economic ties and cooperating on major global issues. She criticized subsidies the Chinese government offers to its industries and said the U.S. will remain the world's dominant economic power.
Top Fed Official Signals Support for May Interest-Rate Increase
A top Federal Reserve official said the central bank had more work ahead to bring down inflation, suggesting another interest-rate increase would be warranted at the Fed's meeting in two weeks.
"Inflation is still too high, and we will use our monetary policy tools to restore price stability," said New York Fed President John Williams in a speech Wednesday night to a group of financial-industry professionals in Manhattan.
Drop in Transportation Stocks Foreshadows Weakening Economy
Economically sensitive stocks, like those of transportation and small-cap companies, are trailing the broader market, reflecting growing investor concern about a potential recession.
The Dow Jones Transportation Average, which tracks 20 large U.S. companies ranging from airlines to railroads to truckers, has underperformed the Dow Jones Industrial Average by about 8.3 percentage points since early February. Shares of Norfolk Southern Corp., American Airlines Group Inc. and J.B. Hunt Transport Services Inc. have dropped at least 10% over the same period.
Energy Department Commits $3 Billion to Expand Rooftop Solar Access
The Energy Department will guarantee up to $3 billion in debt securities issued to fund rooftop solar installations, hoping to expand access to renewable energy by making the deal a no-lose proposition for many investors.
The backstop is part of the Biden administration's green financing effort, which includes hundreds of billions of dollars in tax credits and loans for clean energy, climate tech startups and other green businesses.
China's PBOC Keeps One-Year Loan Prime Rate Steady
China's benchmark lending rates were kept unchanged, as signaled by unchanged policy rates earlier this week, suggesting that Beijing is comfortable with the current pace of the country's economic recovery led by consumption.
The one-year loan prime rate was held steady at 3.65% while the five-year LPR was unchanged at 4.3%, the People's Bank of China said Thursday.
China Shifts to More Upbeat Tone Over Economic Recovery
China's top economic planner adopted a more upbeat tone in its latest assessment of the economy this week, marking a change from Beijing's previous cautious outlook and suggesting rising optimism that the country is on track for a solid recovery.
The current status of China's economy can be summarized into "demand expansion, recovering supply and improving expectations," Meng Wei, a spokesperson for the National Development and Reform Commission, said Wednesday.
Australia Plots Biggest Shake-Up of Central Bank in Decades
SYDNEY-Australia said it would make broad changes to how its central bank operates, in a move that will weaken the governor's influence over key decisions including interest rates.
The biggest change will see the Reserve Bank of Australia adopt a monetary policy committee structure that has parallels to the setup of the Bank of Canada and the Bank of England. Australian Treasurer Jim Chalmers said RBA policymakers would now gather to set interest rates eight times a year, compared with the current 11 meetings.
Bank of Japan Largely Maintains View of Regional Economies
The Bank of Japan largely maintained its assessment for the nation's regional economies, saying they are recovering from the impact of the pandemic.
"According to assessments from regions across Japan, all of them reported that their respective economies, despite being affected by factors such as high commodity prices, had been picking up or had been picking up moderately," the BOJ said in its quarterly regional economic report released Thursday.
Air Force Inspector General Probe of Airman Jack Teixeira's Unit Could Lead to More Charges
The intelligence unit of a U.S. Air National Guardsman who allegedly accessed and shared highly classified intelligence documents has come under scrutiny, and officials aren't ruling out punitive action for the unit, defense officials said Wednesday.
The Air Force inspector general is investigating the home unit of Airman First Class Jack Teixeira, the Massachusetts Air National Guardsman who has been charged with taking and sharing a trove of government secrets. The inspector general is seeking to determine whether the unit complied with procedures designed to protect against leaks, those officials said.
Intelligence Leaks Cast Spotlight on a Recurring Insider Threat: Tech Support
WASHINGTON-Jack Teixeira, the 21-year-old Air National Guardsman charged with leaking top-secret U.S. documents, shares at least one thing with leaker Edward Snowden: They both worked in tech support.
Massachusetts Airman Teixeira's alleged disclosures on a social-media platform demonstrate anew how information-technology workers responsible for routine tasks such as network maintenance pose a potential risk to the government's efforts to control classified information.
Ukraine Pilots Stretch Soviet-Era Helicopters to Their Limits in Daring Assaults
The two Soviet-era helicopters sped toward the eastern Ukrainian city of Avdiivka just after dawn, flying 20 feet above the ground to keep the low-tech machines off radar.
Three miles from the city, the Ukrainian pilots climbed to 100 feet and unleashed a volley of rockets onto several industrial buildings north of the city. As they headed back to the airfield, they got word that Russian jet fighters were racing toward them. They landed immediately to avoid being easy targets.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Calendar (ET):
0830 Feb Employment Insurance
1130 Bank of Canada's Macklem appears before the
Standing Senate Committee on Banking, Commerce and the Economy
Stocks to Watch:
Curaleaf: To Restate Certain Previously Issued 2022 and 2021 Fincl Statements; Minor Reductions in Rev of Approximately 1.25% and 0.75% for 2021 and 2022, Respectively
Expected Major Events for Thursday
04:30/JPN: Feb Tertiary Industry Index
05:00/JPN: Mar Convenience Store Sales
06:00/GER: Mar PPI
06:00/JPN: Mar Revised Machine Tool Orders
06:45/FRA: Apr Monthly business survey (goods-producing industries)
08:30/UK: Jan Card Spending statistics
10:00/UK: Mar Aluminium Production report
12:30/US: Apr Philadelphia Fed Business Outlook Survey
12:30/CAN: Feb Employment Insurance
12:30/US: 04/15 Unemployment Insurance Weekly Claims Report - Initial Claims
12:30/US: U.S. Weekly Export Sales
13:00/RUS: Weekly International Reserves
14:00/US: Mar Existing Home Sales
14:00/US: Mar Leading Indicators
14:30/US: 04/14 EIA Weekly Natural Gas Storage Report
20:30/US: Foreign Central Bank Holdings
20:30/US: Federal Discount Window Borrowings
23:01/UK: Apr UK Consumer Confidence Survey
23:30/JPN: Mar CPI (Nation), CPI ex-food (Nation)
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Thursday
1st Source Corp (SRCE) is expected to report $1.26 for 1Q.
AT&T Inc (T) is expected to report $0.55 for 1Q.
Advaxis Inc (ADXS) is expected to report for 1Q.
Alaska Air Group Inc (ALK) is expected to report $-0.54 for 1Q.
AutoNation (AN) is expected to report $5.64 for 1Q.
Banc Of California Inc (BANC) is expected to report $0.38 for 1Q.
Berkshire Hills Bancorp (BHLB) is expected to report $0.66 for 1Q.
Blackstone Inc (BX) is expected to report for 1Q.
City Holding Co (CHCO) is expected to report $1.77 for 1Q.
Comerica Inc (CMA) is expected to report $2.29 for 1Q.
East West Bancorp (EWBC) is expected to report $2.20 for 1Q.
Escalade Inc (ESCA) is expected to report for 1Q.
Fifth Third Bancorp (FITB) is expected to report $0.79 for 1Q.
Forestar Group Inc (FOR) is expected to report $0.33 for 2Q.
Genuine Parts Co (GPC) is expected to report $2.05 for 1Q.
Herc Holdings Inc (HRI) is expected to report $2.30 for 1Q.
Heritage Financial Corp (HFWA) is expected to report $0.60 for 1Q.
Home BancShares Inc (HOMB) is expected to report $0.51 for 1Q.
Huntington Bancshares Inc (HBAN) is expected to report $0.37 for 1Q.
Insteel Industries (IIIN) is expected to report $0.38 for 2Q.
Iridium Communications Inc (IRDM) is expected to report $0.02 for 1Q.
KeyCorp (KEY) is expected to report $0.44 for 1Q.
Manhattan Bridge Capital (LOAN) is expected to report $0.10 for 1Q.
ManpowerGroup (MAN) is expected to report $1.60 for 1Q.
Marsh & McLennan (MMC) is expected to report $2.40 for 1Q.
Nucor Corp (NUE) is expected to report $3.83 for 1Q.
Orbit International (ORBT) is expected to report for 4Q.
Philip Morris International Inc (PM) is expected to report $1.33 for 1Q.
Pool Corp (POOL) is expected to report $3.18 for 1Q.
Republic Bancorp Inc (RBCAA) is expected to report $1.76 for 1Q.
Rite Aid Corp (RAD) is expected to report for 4Q.
S&T Bancorp Inc (STBA) is expected to report $0.94 for 1Q.
Sandy Spring Bancorp Inc (SASR) is expected to report $0.67 for 1Q.
Snap-On Inc (SNA) is expected to report $4.12 for 1Q.
Synovus Financial (SNV) is expected to report $1.25 for 1Q.
Texas Capital Bancshares Inc (TCBI) is expected to report $0.87 for 1Q.
Truist Financial Corp (TFC) is expected to report for 1Q.
(MORE TO FOLLOW) Dow Jones Newswires
04-20-23 0616ET
