Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Final Estimate of US First-Quarter GDP Declines

By

Today's financial recap and tomorrow's financial outlook.

PrintPRINT
European markets rallied as Mario Draghi, President of the ECB, said that the ECB has no plans to alter its monetary policy. The German DAX (INDEXDB:DAX) finished the day up 1.66%. Chinese money market rates began to normalize again as the Chinese government made efforts to control the liquidity squeeze.

The third estimate of US first-quarter GDP was unexpectedly revised downward from 2.4% to 1.8% due to declines in personal consumption and exports. Crude inventories rose by 18,000 barrels last week, according to the EIA. Crude oil was $0.16 higher at the close of floor trading.

Despite the negative macroeconomic news, US indices rallied throughout the day. The S&P 500 (INDEXSP:.INX) finished up 1.1%. All subsectors of the S&P were positive today with health care, utilities, consumer discretionary, and industrials in the lead with gains of more than 1.25%. Regional financials also broke above recent highs as rising interest rates show the greatest benefit to these banks. Larger investment banks like Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS) lagged. The 10-year yield dropped 5 bps to 2.535%, despite the very weak Treasury auction of $35 billion in 5-year notes. Gold took another big hit, plunging 4% on the day.

General Mills, Inc. (NYSE:GIS) reported earnings this morning before market open. EPS came in on par with expectations of $0.53. The $4.4 billion in revenue topped the expected $4.3 billion. Shares dropped 0.5% on the news.

Tomorrow's Financial Outlook

Great Britain's GDP will be released at 4:30 a.m. EDT tomorrow morning. EMU economic sentiment will be released at 5:00 a.m. EDT.

US jobless claims will be reported at 8:30 a.m. EDT. Initial weekly claims are expected to come in at 345K. US personal income and outlays will be released tomorrow at 8:30 a.m. EDT. Personal income is expected to see month-over-month growth of 0.2%. Consumer spending is expected to rise 0.4% over the same time period. Pending home sales will be released at 10:00 a.m. EDT. Sales are expected to have grown 1.0% over the past month.

ConAgra Foods, Inc. (NYSE:CAG), KB Home (NYSE:KBH) and Nike, Inc. (NYSE:NKE) will be reporting earnings tomorrow.

Japanese CPI and household spending will be released at 7:30 p.m. EDT.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE