(As of 7:10 am PST)
Stocks are extending gains from yesterday despite a
downward revision to first quarter GDP.
US GDP rose 1.8% in Q1, down from initial estimates of 2.4%. The majority of the decline was fueled by a
slowdown in consumer spending as consumers spent less on services such as
health care, fast food, travel, and personal care. Residential investment was revised upward
reflecting the strength of the housing recovery. Market gains were capped after the GDP
report, but the Dow is holding on to triple digit gains for the second
consecutive day. Yesterday’s data which
showed increases in durable goods orders, new home sales, and consumer
confidence helped international markets today.
Asian markets finished mixed, while trade in Europe is strong to the
upside. Gold and other metals continue
to take a beating on Fed fears. Gold
prices are down 3% today to $1,236 per oz., the lowest level seen since
September 2010. The US dollar continues
to inch higher while interest rates dipped slightly with the 10 yr. treasury
yield at 2.53%. Expect gains to
dissipate as the day wears on but remain in positive territory for the second
consecutive day.
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