Markets continue to seesaw this week, erasing some of yesterday’s loss today.
First the scoreboard:
Dow: 15,331, +28.7 pts, +0.1%
S&P 500: 1,654, +6.8 pts, +0.4%
NASDAQ: 3,492, +25.3 pts, +0.7%
And now the top stories:
- The Bureau of Economic Analysis published it’s revised estimate of Q1 GDP, and growth was revised down to 2.4% from last month’s reading of 2.5%. However, the personal consumption component was revised up to 3.4% from 3.2%. Economist were expecting it to be revised up to 3.3%.
- Perhaps the most surprising nugget from the GDP report was corporate profits after tax, which came in at -1.9%. Economists were expecting +0.2%. This was the first negative growth reading since Q1 2012. While U.S. corporate profits are not the same as S&P 500 corporate profits, today’s report is nevertheless worrisome as the U.S. has been one of the healthier economies in the developed world.
- Initial jobless claims jumped to 354,000 from last week’s reading of 340,000. This was also much higher than the 340,000 expected. This weekly measure tends to be quite volatile. But if rising jobless claims becomes a trend, then it would certainly be something worth worrying about.
- Rounding out the trio of disappointing economic news was pending home sales, which climbed a modest 0.3% month-over-month. Economists were looking for a 1.5% gain.
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