The day started off looking it like it might turn ugly, but it quickly recovered after the US GDP figures were released in the morning. The first estimate of economic growth from the third quarter saw the an annual rise of 2.0%, beating economist estimates of 1.8% and up from last quarter's 1.3%. The leading driver of this surprise growth was the highest government spending figure in over three years. However, the rest of the day's action was highly negative as we retested the overnight lows before rallying to an unchanged close. Financials and the Russell 2000 were the clear laggards for today; declining stocks outpaced advancing stocks on the NYSE by a ratio of 2:1
Overnight in Spain, unemployment rose from 24.6% to 25.0%. While not a large rise given the already elevated rate, this set a new record for the highest unemployment in the country since it became a democracy in the 1970s.
(NASDAQ:AAPL) recovered from yesterday's negative earnings report to finish the day down a little less than 1%. The broader tech-based NDX-100 index rose 0.5% on the day.
Tomorrow's Financial Outlook
Monday trading may be sluggish as Hurricane Sandy will make landfall that evening in the Northeast. Economic data that morning will include personal income, personal spending, and the PCE deflator, the final gauge of real GDP. Income and spending data is expected to rise modestly from last month.
In European economic data, the UK will report consumer credit and Germany will report consumer price index data.
Earnings reports will include Burger King
(NYSE:HTZ), Anadarko Petroleum
(NYSE:APC), and Cavium
No positions in stocks mentioned.
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