Atlanta Fed Boosts US Economic Growth Prediction to 2.3%

$DIA, $SPY, $QQQ, $RUTX, $VXX

The Atlanta Federal Reserve lifted its GDP estimate for Q-4 back above 2% in the wake of recent strong economic data on housing and factories.

The Atlanta Fed GDP Now boosted its Q-4 GDP growth estimate to a 2.3% rate from a 2% pace Friday.

The regional arm of the central bank boosted estimates for Q-4 real consumer spending and real gross private domestic investment growth, and trimmed the estimate for real net exports.

The economy grew at a 2.1% rate in Q-3. The economy grew at a 2.0% pace in the April-June frame.

The Atlanta Fed revision came hours after US homebuilding increased more than expected in November and permits for future home construction surged to a 12.5-yr high as lower mortgage rates continue to boost the housing market and support the broader economy.

The economy’s near-term prospects were also bolstered by other data on Tuesday showing a strong rebound in manufacturing production in November as the return of formerly striking General Motors’ workers boosted automobile output. The data suggested the economy remained on a moderate growth path in Q-4 despite slowing consumer spending.

Tuesday, the US major stock market indexes finished at: DJIA +31.27 at 28267.07, NAS Comp +9.13 at 8823.37, S&P 500 +1.07 at 3192.52, all marking record closes.

Volume: Trade on the NYSE came in at 939-M/shares exchanged

  • NAS Comp +33.0% YTD
  • S&P 500 +27.4% YTD
  • Russell 2000 +22.9% YTD
  • DJIA +21.2% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish in here.

Looking ahead, investors will receive the MBA Mortgage Applications Index Wednesday.

Stay tuned…

#consumer#DIA#DJIA#Fed#GDP#GM#growth#investors#QQQ#RUTX#spending#SPY#very bullish#VXX