Stocks are lower this morning, remaining negative after a
strong third-quarter growth number.
S&P 500 futures fell about half a percent, while most
European indexes are down 1-2 percent. Commodities are also under
pressure as the United States dollar appreciates. Asia was mixed
The Commerce Department announced that gross domestic rose 3.5
percent in the third quarter, better than the 3 percent forecast
by economists. It comes just one day after the Federal Reserve
ceased monetary stimulus amid "solid job gains" and "a
substantial improvement in the outlook for the labor market."
That kind of language is consistent with higher interest rates.
Equities had rallied into the Fed's announcement, with the
S&P 500 retracing most of its selloff in late September and
early October. The big question now facing investors is whether
to expect another pullback and further consolidation, especially
with major economic reports like the Institute for Supply
Management's manufacturing index and non-farm payrolls due next
In addition to GDP, weekly jobless claims totaled 287,000,
slightly worse than the 283,000 estimate. Today also brought two
unexpectedly strong economic reports from Europe as German
unemployment shrank and regional sentiment climbed. Both were
forecast to worsen.
Energy, materials and miners have been the weakest groups in the
last month, according to optionMONSTER's proprietary
market scanner. Airlines, real-estate investment trusts, car
retailers, healthcare and utilities fared the best, while
industrials have also shown signs of strength as well.
In company-specific news, Visa rose about 4 percent after
reporting better-than-expected profit and revenue yesterday
afternoon. Akamai Technologies and JDS Uniphase also beat
The quarter reports continue this morning with companies such as
MasterCard, Cigna, Kellogg, BorgWarner, L-3 Communications,
ConocoPhillips and CME. Starbucks, Expedia, Flour, Mylan, and
Eastman Chemical follow in the afternoon.
Oil and copper fell about 1 percent, while gold declined nearly 2
percent and silver's decline approached 3 percent. The U.S.
dollar gained against every major currency and the Japanese yen
rose against the euro--all consistent with a mood of