(As of 7:20 am PST)
US stocks are mixed going into the weekend as investors
digest GDP data announced by the government early this morning. Gross domestic product for Q1 2013 expanded
at a 2.5% clip, a significant increase from the dismal 0.4% pace seen in the 4th
quarter, however growth was slower than analysts expectations. Consumer spending was surprisingly robust in
Q1 with consumer purchases rising 3.2% from 1.8% in Q4. Government spending declined for the second
straight quarter with steep military cuts contributing to a slowdown in
growth. Imports also rose, meaning more
dollars flowed out of the US as demand for domestic-made goods and services
weakened. The effects of the sequester
and higher personal taxes will likely be seen in Q2’s GDP data as analysts
expect growth to taper off to 1.8%. The
downbeat data caused stocks to open lower while treasury prices surged with
rates on the 10 yr. falling to 1.68%.
Consumer sentiment data also weighed on stocks as data showed sentiment
dropping in April to a 3 month low.
European stocks were in the red on US GDP data and Asian markets
finished mixed. Gold is having a
comeback week, with prices up 0.5% today.
Expect some seesaw trading this morning as the markets figure out how to
digest the GDP data.
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