“Stocks opened higher Friday, the final trading day of January, after the GDP report showed the economy grew more than expected in the fourth quarter,” CNBC reports.
“Gross domestic product growth rose 5.7 percent in the final three months of 2009, topping estimates of 4.6-percent growth. While much of the growth was attributed it to inventory rebuilds, there were also some other pockets of strength, which gave a boost to stocks,” CNBC reports.
“But traders were slightly worried about a couple of points in the report: The sharp revision to the prior quarter’s growth and consumer spending,” CNBC reports. “‘Traders are viewing this number with tepid enthusiasm,’ said Todd M. Schoenberger, managing director of LandColt Trading in San Antonio, Texas. ‘The biggest disappointment was the print on consumer spending, which only contributed 1.44% to GDP,’ he said. ‘Considering 70% of GDP comes from the American consumer, the outlook for future quarters still looks bleak considering the labor situation in the country.'”
CNBC reports, “As of Thursday’s close, major indexes are on track to end lower for January. The Dow is down 3 percent so far for January. If it holds through today’s session, that would be the biggest monthly loss since last February.”
Full article here.
The Associated Press reports, “Concerns have been mounting that potential new regulations coming out of Washington could upend a fragile economic recovery. President Barack Obama’s calls last week to restrict trading by big financial institutions helped spark the sell-off. He has provided scant details about the bank overhaul plan to help alleviate any concerns.”
“High unemployment — it remains at 10 percent — is one of the biggest obstacles the country faces… some say the economy will slow from the torrid pace seen during the fourth quarter because much of the growth was tied to companies replenishing low inventories,” AP reports. “Restocking of inventories usually only provides a temporary bump in economic growth.”
AP reports, “In early morning trading, the Dow Jones industrial average rose 30.15, or 0.3 percent, to 10,150.61. The Standard & Poor’s 500 index rose 3.66, or 0.3 percent, to 1,088.19, while the Nasdaq composite index rose 16.73, or 0.8 percent, to 2,195.73.”
Full article here.
MacDailyNews Note: At 9:55am ET, shares of Apple Inc. (AAPL) are trading up $1.89, or 0.95%, at $201.18, down $14.41 from their $215.59 all-time high set earlier this month.