us stocks rally after weak 1q gdp data
Last Updated : GMT 00:27:23
Arab Today, arab today
Arab Today, arab today

US stocks rally after weak 1Q GDP data

Arab Today, arab today

Arab Today, arab today US stocks rally after weak 1Q GDP data

Wall Street stocks finished week on positive note
New York - AFP

Wall Street stocks finished the week on a positive note after a bruising two-day retreat following a dismal US economic growth report.

Friday's rally limited the losses, with the Dow Jones Industrial Average finally dipping 56.08 points(0.31 percent for the week to 18,024.06 and the broad-based S&P 500 shedding 9.40 (0.44 percent) to 2,108.29.

The decline in the Nasdaq was deeper, with the tech-rich index dropping 86.69 (1.70 percent) to 5,005.39

In a week packed with major earnings, economic reports and a Federal Reserve meeting, the most impactful news was Wednesday's stunner that the US economy grew just 0.2 percent in the first quarter.

The dismal gross domestic product figure, reflecting in part the drag from exceptionally cold winter weather and the West Coast port strike, prompted soul-searching on Wall Street.

"What a disappointment to think the US economy barely grew at all in the first quarter with the fed funds rate at the zero bound for more than six years now," said Briefing.com analyst Patrick O'Hare.

The GDP report was followed later Wednesday by a Fed policy statement that said the slower growth was due "in part" to transitory factors and that the economy should resume expanding at a "moderate pace."

The communique suggested the Fed still expects to begin a slow series of rate rises in the coming months, though probably not as soon as June.

Scott Wren, senior global equity strategist at Wells Fargo Investment Institute, said the market "had a little tough time processing" the GDP data. But after two days, investors shrugged off their fears.

"The market is feeling better that the Fed's not going to do too much here and that the economy is going to move forward at a modest pace," he said.

Other data last week was mixed. The Conference Board's index of consumer confidence fell sharply to 95.2 in April from 101.4 in March.

Other reports showed a modest rise in consumer spending in March and sluggish growth in manufacturing activity in April. US auto sales picked up in April.

- Earnings generally solid -

Companies have generally bested what were very low expectations ahead of first-quarter earnings season.

Of the 347 companies in the S&P 500 that have reported, 238 have reported earnings ahead of expectations, while 76 have missed, with the rest coming in at levels forecast by analysts. Only 45 percent have beaten expectations for revenues, according to S&P Capital IQ.

Standouts this week included drug giant Merck (+3.9 percent this week), which raised its full-year forecast after adjusted earnings per share in the first quarter came in at 85 cents, 11 cents above forecasts.

The market also a cheered a sunny report from online travel site Expedia, which reported a 19 percent increase in gross bookings and a 14 percent gain in revenue, lifting the stock 7.9 percent Friday.

But other technology stocks suffered double-digit declines following disappointing results. This group included LinkedIn, Twitter, Yelp and Stratasys, a 3D printing company.

In other corporate news, generic drugs company Mylan finished the week 2.9 percent lower after it balked at an unsolicited takeover campaign from rival Teva even as its own proposed acquisition of Perrigo met with repeat rejection.

Perrigo and Teva both fell 3.4 percent.

Applied Materials agreed with Tokyo Electric to abandon their nearly $10 billion merger agreement, citing opposition from the US Justice Department on antitrust grounds.

Starwood Hotels & Resorts Worldwide announced it hired investment bank Lazard to undertake a strategic review of the company to enhance shareholder value. The move sparked speculation that Starwood, which owns the Westin hotel chain, could be acquired.

Next week's calendar includes a handful of major earnings reports, including from Disney and 21st Century Fox. The schedule also contains some important economic releases, including the April jobs report from the US Department of Labor.

 

arabstoday
arabstoday

GMT 22:40 2017 Wednesday ,22 November

Bahrain Bourse daily trading performance

GMT 11:50 2017 Tuesday ,21 November

European stocks shrug off Germany's political woes

GMT 03:59 2017 Tuesday ,21 November

Weekly inflation decreases by 0.88%

GMT 23:50 2017 Monday ,20 November

Bahrain Bourse daily trading performance

GMT 14:54 2017 Sunday ,19 November

Bahrain Bourse daily trading performance

GMT 03:16 2017 Saturday ,18 November

Asian markets head for positive end to volatile week

GMT 11:57 2017 Friday ,17 November

US stocks boosted by solid Wal-Mart, Cisco earnings

GMT 06:51 2017 Friday ,17 November

Bahrain Bourse daily trading performance
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us stocks rally after weak 1q gdp data us stocks rally after weak 1q gdp data

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us stocks rally after weak 1q gdp data us stocks rally after weak 1q gdp data

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday