Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Stock Markets Rise On Higher Than Expected U.S. GDP Q2 Growth

Stock-Markets / Stock Markets 2010 Aug 27, 2010 - 09:51 AM GMT

By: PaddyPowerTrader


Best Financial Markets Analysis ArticleStocks Rise On Higher Than Expected US GDPUS stocks were up Friday, sending the Dow Jones back above the 10000 level after numbers for US GDP Q2 economic growth were slightly above analysts expectations. The Dow climbed 44 points, or 0.4 percent, to 10030 on the news. The Dow closed below the psychologically important 10000 mark on Thursday for the first time since early July, due in part to jitters ahead of Friday morning’s report on gross domestic product.

The Nasdaq climbed 0.6 percent to 2132 on the same data. The Standard & Poor’s 500 index added 0.6 percent to 1053, with its materials sector leading the broad advance. The gains follow a Commerce Department report showing gross domestic product, the value of all goods and services produced, rose at an annualized seasonally adjusted rate of 1.6 percent in April to June. The growth rate is down from the previous estimate of 2.4 percent, but above economists’ expectations for 1.3 percent growth. (Market Watch).

Market Moving Stories

•Britain’s economy grew at its fastest pace for nine years in the second quarter, an unexpected revision to official data showed on Friday, but economists said a sharp slowdown was still on the cards.
•Germany’s economy continues to set the pace in the euro zone and bank lending in the bloc shows signs of reviving too, data showed on Thursday, but Spain and Italy face a harder road to recovery. German consumer morale increased for the third month running, hitting its highest level since last October as shoppers responded to an improving labour market, following an unexpected rise in business sentiment reported on Wednesday.

That healthy picture contrasted with a sharp drop in morale in Italy, the euro zone’s third-largest economy, where consumers turned much more downbeat over their personal finances and the overall confidence index hit a 17-month low.

GDP blues in the USA.

US economic growth was revised down to a sluggish 1.6 percent annual rate in the second quarter, dampened by the largest increase in imports in 26 years, the government said on Friday. Gross domestic product growth previously was estimated at 2.4 percent and analysts had feared it would be pushed down even more sharply, but business investment was robust enough to partially cushion the blow from imports. Analysts polled by Reuters had forecast GDP, which measures total goods and services output within U.S. borders, would be revised to a 1.4 percent growth rate. The economy grew at a 3.7 percent pace in the first three months of the year. “The instant reaction is that it isn’t good but we thought it might be worse, so there might be a bit of relief,” said Nigel Gault, chief US economist at IHS Global Insight in Lexington, Massachusetts. U.S. stock index futures added to gains after the report, while Treasury debt prices extended losses. The U.S. dollar rose against the yen. (Reuters)

Company News

•Luxury jewelry retailer Tiffany & Co. said Friday that its fiscal second-quarter net profit rose a better-than-expected 19 percent, driven by strong demand in most markets from the U.S. to China. The company lifted its outlook for the year but said higher marketing spending will limit profit growth in the third quarter.
•Facebook is now worth as much as $33.7bn based on secondary market transactions, giving the privately held company an implied valuation greater than the market capitalisations of publicly traded internet stalwarts such as Ebay and Yahoo, the Financial Times Reports. Common stock in Facebook is trading as high as $76 a share as investors scramble to get a piece of the company before it files for an initial public offering, which analysts say could be the biggest technology IPO since Google’s $1.67bn flotation in 2004.
( New York Times)

•How high can the bidding war between Dell and Hewlett-Packard for 3Par, an 11-year-old storage company, go? The New York Times tells us that the ante has now been raised five times since Dell opened the public bidding on Aug. 13. On Friday, the bids came fast and furious. First, Dell raised its bid by 10 percent, to $27 a share, matching Hewlett’s offer of Thursday. Several hours later, Hewlett-Packard decided to scrap the game of bidding up by pennies and went big: an offer of $30 a share, or an 11 percent increase from the last bids. Will Dell match? The price for 3Par is now more than eight times its annual revenue of $240 million, a company, which Bloomberg News notes, has “lost money every year since going public in 2007.” That seems very rich for a stock that had been trading around $10 for most of the year.

•The world’s largest fertiliser producer, Potash Corporation, has urged its shareholders to reject a hostile takeover bid from BHP Billiton. Mining giant BHP last week launched a $40bn (£25.8bn) hostile bid for Canada’s Potash Corp after having had an initial offer rejected. Potash reiterated that the bid was “wholly inadequate”, as demand for its products is expected to rise. It also said it had held talks with other potential bidders. “There are a number of people who have contacted us… all sorts of different players. People would be surprised at what we’re seeing,” the group’s chief executive Bill Doyle said. Potash said it expected “superior offers” or other alternatives to emerge from these discussions. Media reports have suggested that Chinese fertiliser firm Sinochem may be interested in bidding.

By The Mole

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.© 2010 Copyright PaddyPowerTrader - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules