Stock Futures Cling to Slim Gains As Q1 GDP Disappoints

Stock futures continued to trade with quite modest gains after data showed the economy grew at a much slower pace than expected. Q1 gross domestic product ( GDP ) was just 0.7%, the slowest pace of growth in three years, missing consensus estimates for a growth rate of 1.1%.

The major market averages were only cautiously higher ahead of the GDP data with rekindled geopolitical pressures tempered by strong quarterly results from Amazon ( AMZN ), Alphabet (GOOG, GOOL) and Dow component stock General Motors ( GM ). Investors remain reluctant after President Trump's interview with Reuters where he said that a "major, major conflict" with North Korea is possible, along with the market's reaction to his underwhelming tax reform plan.

Mitigating selling pressure, however, is the better-than-expected gain in Euro-zone inflation that gives European Central Bank President Mario Draghi ammunition to consider reducing monetary accommodation, along with modest gains in the energy complex.

Friday's remaining economic data includes the April Chicago purchasing managers index, expected to back up to 56.5 from 57.7 in March, and the University of Michigan consumer sentiment index, forecast to remain unchanged at 98.0.

-Dow Jones Industrial up 0.10%

-S&P 500 futures up 0.04%

-Nasdaq 100 futures down 0.09%


Nikkei down 0.29%

Hang Seng down 0.34%

Shanghai Composite up 0.08%

FTSE-100 down 0.36%

DAX-30 up 0.02%


(+) Large cap tech: Higher

(+/-) Chip stocks: Mixed

(+/-) Software stocks: Flat

(+) Hardware stocks: Higher

(+) Internet stocks: Higher

(+) Oil stocks: Higher

(-) Biotech stocks: Lower

(+/-) Drug stocks: Mixed

(+) Financial stocks: Higher

(+/-) Retail stocks: Flat

(+) Industrial stocks: Higher

(+) Airlines: Higher

(+) Autos: Higher


(+) WDC (+7.23%) Reported better-than-expected Q1 EPS and sales

(+) SWN (+6.13%) Swung to a profit in Q1 on 46% surge in revenue

(+) RRC (+2.19%) Upgraded at Wells Fargo to outperform from market perform


(-) GIMO (-16.53%) Q1 EPS and revenue beat estimates, names new chief marketing officer

(-) ARAY (-11.96%) Lowered FY17 sales guidance, misses sales estimates

(-) ORC (-4.85%) Missed Q1 profit estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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