Stocks are set to extend yesterday's gains and precious metals
crashed, but a much-worse-than-expected GDP report could throw the
The government's final estimate for US GDP fell far short of
estimates. The US economy grew by just 1.8% in the first quarter.
Economists expected to see that the measure matched previous
estimates of 2.4% growth.
After US stocks rose on an improving eoconomy,
(INDEXDJX:.DJI) futures were up 0.48% at 14,761 this morning.
Futures contracts on the
(INDEXSP:.INX) gained 0.59% to 1,590.70 after hitting a nine-week
(INDEXNASDAQ:.IXIC) futures climbed 0.70% to 2,878.25.
Today is already a brutal one for precious metals. Spot gold hit a
three-year low this morning. The price is down 3.75% at
$1,229.76/ounce. Silver is trading for $18.64 on COMEX, down 4.66%
SPDR Gold Trust (
(NYSEARCA:GLD) fell 3.56% in the pre-market. One reason for this
could be the much-better-than-expected economic data yesterday that
sent up stocks, but worried some that an improving economy
strengthens the Federal Reserve's case for tapering off stimulus.
Today's GDP report might temper those fears.
Also today, Federal Reserve Presidents Jeffrey Lacker and Richard
Fisher will both give speeches that investors could scrutinize for
clues about the Fed's direction for the near term.
China's central bank further calmed markets, reiterating that it
will inject cash into the system as needed "based on the market's
actual situation." It is providing financing support to some
institutions to stabilize interbank lending rates.
European equities are moderately higher and Asian shares were
mixed. France's economy shrank by 0.2% in the first quarter, coming
in line with previous counts. Germany's GfK consumer confidence
survey rose to 0.3 points to 6.8, its highest level since 2007.
(INDEXNIKKEI:.NI225) declined 1%.
Gold miners declined today on the falling price of gold.
Barrick Gold Corporation (
Goldcorp Inc. (
) fell 4% to$16.11 and $23.44 in pre-market trading, respectively.