The Fed did as expected and kept interest rates at virtual zero, and they indicated that they would continue the taper by reducing another $10 billion from the monthly bond buying program. On the economic data front, the GDP number for the first quarter was released this morning and yes, we did expect that weather had slowed production in the first quarter, but the number came in at basically flat. That was a little worse than anyone had guessed. Market participants pretty much shook off the GDP report, anticipating that a snapback is occurring in the second quarter and that the first quarter weakness is mostly weather related.
Anyway, by the close, the Dow Jones Industrial Average was up 45 points to finish the day at 16,580. The S&P 500 was up 5 points to close at 1883. Gold was down $5 to trade at $1291 per ounce, while oil was down $1.46 to trade at $99.82 per barrel WTI.
Now we’ll see how the employment report shapes up on Friday. The markets are counting on the fact that the first quarter weakness is temporary. I guess we’ll find out soon enough if that is correct. Stay tuned.
Have a nice evening everyone.