U.S. GDP fails to move stocks at the open
David Berman
There is a little change when the North American stocks opened on Friday, after investors were ripped following an unexpectedly worse reading on U.S. initial jobless claims.
There is a decline on the average by 1 point on the Dow Jones industrial average, to 10,320. The broader Standard & Poor’s 500 fell by 1 point, to 1102. The S&P/TSX composite index in Canada rose 3 points, to 11,634.
The Commerce Department of the U.S. reported the economy broadened at a 5.9% annualized clip in the Q4, more than the 5.7% growth originally forecasted in January. The upward revision was not appreciated by economists.
“The overall growth in the Q4 [was] still very inventory-driven, with a 3.9% point contribution,” said chief U.S. economist at High Frequency Economics, Ian Shepherdson. In a note, he said, “Final domestic sales increased only 1.6%, following 1.7 cent in the Q3 and 2.3% in the Q2.
“The reported increase today in the second estimate of Q4 GDP to 5.9% from the formerly reported 5.7% does little to change the fact that the bulk of the posted surge in GDP growth in the Q4 reflects a sharp reduction in the rate of inventory liquidation after the unexpected drop through the first 3 quarters of 2009,” said Nathan Janzen, a Royal Bank of Canada economist, in a note.
In the US, Boeing Co. increased 0.9% and General Electric Co. increased by 0.8%. Home Depot Inc. and Wal-Mart Stores Inc. dropped 0.7% each.
Energy stocks in Canada generally increased with crude oil’s price, with Suncor Energy Inc. up by 0.3% and Talisman Energy Inc. up by 0.2%. Among gold stocks, on the other hand, Barrick Gold Corp. and Goldcorp Inc. increased 0.6% each.
Financials decreased after Thursday’s strong earnings-inspired returns, with Royal Bank of Canada dropping by 0.3 %, Bank of Nova Scotia dropping by 0.4% and Manulife Financial Corp. dropping by 0.6%.
VIA Globe and Mail
Keyword: Stock Investing
David Berman
There is a little change when the North American stocks opened on Friday, after investors were ripped following an unexpectedly worse reading on U.S. initial jobless claims.
There is a decline on the average by 1 point on the Dow Jones industrial average, to 10,320. The broader Standard & Poor’s 500 fell by 1 point, to 1102. The S&P/TSX composite index in Canada rose 3 points, to 11,634.
The Commerce Department of the U.S. reported the economy broadened at a 5.9% annualized clip in the Q4, more than the 5.7% growth originally forecasted in January. The upward revision was not appreciated by economists.
“The overall growth in the Q4 [was] still very inventory-driven, with a 3.9% point contribution,” said chief U.S. economist at High Frequency Economics, Ian Shepherdson. In a note, he said, “Final domestic sales increased only 1.6%, following 1.7 cent in the Q3 and 2.3% in the Q2.
“The reported increase today in the second estimate of Q4 GDP to 5.9% from the formerly reported 5.7% does little to change the fact that the bulk of the posted surge in GDP growth in the Q4 reflects a sharp reduction in the rate of inventory liquidation after the unexpected drop through the first 3 quarters of 2009,” said Nathan Janzen, a Royal Bank of Canada economist, in a note.
In the US, Boeing Co. increased 0.9% and General Electric Co. increased by 0.8%. Home Depot Inc. and Wal-Mart Stores Inc. dropped 0.7% each.
Energy stocks in Canada generally increased with crude oil’s price, with Suncor Energy Inc. up by 0.3% and Talisman Energy Inc. up by 0.2%. Among gold stocks, on the other hand, Barrick Gold Corp. and Goldcorp Inc. increased 0.6% each.
Financials decreased after Thursday’s strong earnings-inspired returns, with Royal Bank of Canada dropping by 0.3 %, Bank of Nova Scotia dropping by 0.4% and Manulife Financial Corp. dropping by 0.6%.
VIA Globe and Mail
Keyword: Stock Investing
