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Why Domino’s Pizza and Delta Air Lines Hint at a Stronger Economy

We’re still in the earliest stages of what is projected to be a brutal third-quarter earnings season, so let’s not get ahead of ourselves. But companies as disparate as Domino’s Pizza (DPZ (opens in new tab), $320.91) and Delta Air Lines (DAL (opens in new tab), $31.00) are hinting at a stronger economy ahead.

Which is what we should expect based on official projections of economic growth. The Federal Reserve forecasts real, or inflation-adjusted, gross domestic product to increase a meager 0.2% this year, but then accelerate to 1.2% in 2023. 

True, that’s still below trend, but it would represent a significant improvement over what we’ve slogged through in 2022. Remember, GDP declined by 1.6% and 0.6% in the first and second quarters, respectively, of the current year.

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