Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on), and nearly 65% from companion animal (dogs, horses, cats) products. Its US business is skewed even more heavily toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.

Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm earns roughly 35% of total revenue from production animals (cattle, pigs, poultry, and so on), and nearly 65% from companion animal (dogs, horses, cats) products. Its US business is skewed even more heavily toward companion animals, while its international business is slightly skewed toward production animals. The firm has the largest market share in the industry and was previously Pfizer's animal health unit.

Zoetis Inc., a 2013 spinoff from Pfizer, focuses on the development, manufacture and commercialization of animal health vaccines and medicines, including parasiticides, anti-infectives, and medicated feed additives. The company develops products for both livestock and companion animals and distributes its products globally. Zoetis is a component of the S&P 500 and has roughly 13,800 employees.

Is the U.S. Economy on Firm Ground? Several key indicators released last week suggested there might be some underlying weakness in the U.S. economy. This debate surely will play out on Wall Street this week. Meanwhile, the calendar has flipped to March, so that means the February jobs report is pending, and Fed Chairman Powell is scheduled to speak this week. Last week, the Dow Jones Industrial Average gained 1.0%, the S&P 500 dropped 1.0%, and the Nasdaq lost 3.5%. Year to date, the Dow is up 3%, the S&P 500 is up 1.2%, and the Nasdaq has lost 2.4%. We start the week looking back at data that came out on Friday and suggested some possible weakness in the U.S. economy. Notably, the Atlanta Fed GDPNow indicator reversed course and now forecasts a decline of 1.5% in 1Q. As of February 19, this forward-looking indicator had called for expansion of 2.3%. The reversal is also evident in two other data points. First, the consumer-spending component of the Personal Consumption Expenditures Index (PCE) surprised at down 0.2% for January. That was the first decline in two years and the biggest decrease in nearly four years. The result is worrisome as consumer spending accounts for two-thirds of GDP. Second, the trade deficit for goods hit a record high in January, likely as manufacturers try to get ahead of pending tariffs. The orders for overseas products and components could smooth out over time as the tariffs and their impact became clear. For full year 2025, our GDP estimate is for 2.1% growth. Our modeling is a dynamic process and takes into account many incoming variables. On the economic calendar this week, the jobs report is due on Friday. In January, nonfarm payrolls came in at 143,000. For February, Argus Chief Economist Chris Graja sees that number rising to 150,000. The unemployment rate was 4.0% in January. Chris sees that ticking up to 4.1%. Elsewhere, Construction Spending and ISM Manufacturing will be reported on Monday; the private payroll report from ADP and Factory Orders will be out on Wednesday; the U.S. Trade Deficit will be released on Thursday; and on Friday, Federal Reserve Chairman Jerome Powell will speak about monetary policy in an address made at the University of Chicago Booth School of Business. Our Economic Call of the Week this week is the ISM Services Index, on which Chris Graja offers the following thoughts. 'While most of Wall Street will be focused on Friday's employment report, our call is for Wednesday's ISM Services Index to remain in expansionary territory. We expect the headline PMI (Purchasing Manager's Index) to top the critical level of 50 for February, at 52. We watch this index very closely. The services sector is huge, representing 47% of GDP. Because it is both big and growing (+3.3%), the sector contributed 1.53 points -- fully two thirds -- of the 2.3% growth in 4Q GDP. With private investment down 5.7% last quarter and spending by the federal government poised to decline, the big services engine may be more important than ever.' Earnings season is almost over. Highlights this week include CrowdStrike, Target, and AutoZone on Tuesday; Marvell Technology, Zscaler, and Campbell Soup on Wednesday; and Costco, Kroger, and Broadcom on Thursday. Some 480 of the S&P 500 companies have reported for last quarter and earnings so far have grown nearly 17% compared to the prior-year quarter. That compares to 9% growth in 3Q. The Financial sector, up 35%, has overtaken Communication Services, up 32%, as the top performer. All sectors are higher except Energy, which is down a whopping 30%, according to Refinitiv. Argus forecasts 12% EPS growth for 2025 and 11% EPS growth for 2026. Last week, mortgage rates dipped 9 basis points, with the average 30-year fixed-rate mortgage now at 6.76%, according to FreddieMac. Gas prices dropped two cents to an average of $3.13 per gallon for regular gas. The Cleveland Fed Inflation Nowcast is forecasting a 2.83% rate for CPI in February. Looking ahead, the next Fed rate decision comes on March 19, with odds at just 7% for a rate cut, according to the CME FedWatch rate tool. After that, the next meeting is on May 7, with odds at 32% for a cut.