(As of 7:20 am PST)
US stocks opened higher today as an optimistic GDP report
caught investors by surprise. The
government reported early Wednesday that the economy grew 4% in the second
quarter, much faster than expected and recovering from the first quarter’s
upwardly revised decline of -2.1%. The
rebound in growth came as good news and supported the notion that Q1’s
startling decline was just an outlier due to a harsh winter and the introduction
of Obamacare. Shares of Twitter stole
the spotlight in earnings related news after the social media company posted a
blowout second quarter after the bell yesterday. The stock is surging in early
action. Later today investors will be
keeping an eye on the Fed’s next policy move.
A policy statement, due out at 2 pm EST, is expected to show the Fed
reducing their monthly bond purchases by another $10 billion to $25 billion per
month. Investors will be looking for
clues on when the Fed will introduce its first interest-rate
hike. International tensions continue to
keep gains at bay as the conflict in Gaza worsened overnight. New sanctions on Russia are also adding to
the economic uncertainty.
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