Stocks Buoyed by Bargain-Hunters In Spite of Bearish Economic Data
The U.S. stock market dismissed surprisingly weak economic data and closed modestly higher as bargain-hunting after Tuesday's triple-digit rout in the Dow Industrials erased early morning losses. Investors wrote off a 2.9% Q1 GDP contraction, blaming weather and deep cuts in healthcare spending. It was the biggest drop in economic growth in more than five years. Even an unexpected decline in durable goods orders failed to put much of a dent in the rebound in equities as the 1% drop was largely a result of a double-digit cut in defense orders.