It was a classic case of good news is bad news today (or perhaps a case of just sell the news), as a better than expected 2nd quarter GDP report (at first look, the economy was measured as growing 4% for the quarter) was better than hadbeen expected (the final revision to 1st quarter GDP was an improvement also). You know the concerns- if the economy actually does improve, then the Fed will be compelled to raise interest rates sooner than previously expected. This sent bond prices down for the session, and stocks, after enjoying a 70 point Dow gain in early trading, reversed course and spent most of the session in the red (down more than 90 points at session lows).
By the close, the Dow Jones Industrial Average was down 31 points to finish the day at 16,880. The S&P 500 was up a fraction to close at 1970. Gold was down $2 to trade at $1296 per ounce, while oil was down $1.29 to trade at $99.68 per barrel WTI.
The Fed meeting concluded with the FOMC voting to continue the taper (reducing monthly asset purchases) and really not any other major new revelations. Other than the always developing global concerns, traders will now focus on Friday’s jobs report. Today’s trading action provided some volatility as market participants are having to deal with many crosscurrents when assessing the global political messes as well as complicated domestic economic data. Let’s see how the rest of the week plays out.
Have a nice evening everyone.