Stocks Rally Despite GDP Shocker

Friends

Today we got the final revision of first quarter GDP and let’s just be thankful that it’s the final revision. What at first glance appeared to be a negative 1% first quarter turned into an almost negative 3% quarter with this latest revision. Let’s just all agree that the first quarter was a nightmare for the economy. Traders chose to look forward however, rallying stocks after yesterday’s downturn. The Durable Goods Orders number was weak also, but the more current PMI Services Flash number (a survey of more than 400 U. S. service sector companies) was encouraging.

Regardless, by the close, the Dow Jones Industrial Average was up 49 to finish the day at 16,867. The S&P 500 was up 9 points to close at 1959. Gold was down a fraction to trade at $1320 per ounce, while oil was up $.58 to trade at $106.61 per barrel WTI.

Tomorrow we get the weekly jobless claims number as well as Personal Income and Outlays. The bears weren’t able to capitalize the dramatic GDP headline to build on yesterday’s downturn. Once again the market takes a punch but gets back up. Let’s see how the rest of the week plays out.

Have a nice evening everyone.

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