Stocks rebounded from the red to close virtually unchanged after the Dow lost as many as 100 points early in the session.
First, the scoreboard:
- Dow: 17,751.56, +0.17, (0.00%)
- S&P 500: 2,109.18, +0.61, (0.03%)
- Nasdaq: 5,131.07, +19.33, (0.38%)
And now, the top stories on Thursday:
- The economy is growing again. Gross Domestic Product advanced at a 2.3% annualized rate, slightly below the forecast for 2.5%. Also, the report from the Commerce Department showed that the economy did not shrink in the first quarter as previously reported. First-quarter GDP growth was revised up to 0.6% from a contraction of 0.2%. “Today’s GDP report, including its revisions, will give the FOMC more confidence that the soft patch in Q1 was less significant than previously thought,” said BNP Paribas economists in a note to clients.
- We also got confirmation that there’s been a rebound in consumer spending, which makes up about two-thirds of GDP, and which economists found weaker than expected in the first half of 2015. Real personal consumption grew more than expected, at 2.9%, versus the estimate for 2.7%, and compared with 2.1% prior. Core personal consumption expenditures (PCE) grew 1.8%, versus 1.6% expected quarter-on-quarter.
- Initial jobless claims rose less than forecast last week to 267,000. Economists had expected initial claims for unemployment insurance to total 270,000, up from 255,000 in the prior period. The 4-week moving average of claims also fell this week, to 274,750 from 278,000.
- SoulCycle is going public. The New York-based fitness company that offers indoor spinning classes filed with the SEC on Thursday. The document showed that the company earned $US112 million in revenue in 2014, and it plans to develop an at-home online offering for classes held outside of its studios.
- Facebook shares slumped 4% even after earnings that topped forecasts. Yesterday, the social network reported earnings per share of $US0.50 ($US0.47 expected) and revenues of $US4.04 billion, also better than expected. Nearly all the sell-side analyst notes we thumbed through maintained their bullish outlook on the company, and several hiked their price targets.
- The International Monetary Fund’s board has decided the IMF’s negotiators will not reach an agreement with Greece, as there’s no explicit deal, according to the Financial Times. An official told Reuters that “the IMF can only support a program that is comprehensive.” The IMF does not know that Greece will be able to pay back money that’s lent.
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