Stocks Climb, Atlanta Fed Raises US GDP Forecast

Stocks Climb, Atlanta Fed Raises US GDP Forecast

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

FLASH: S&P 500 Breaks Above 2800, and President Trump Grounds Boeing’s 737 Max 8 Aircraft

  • S&P 500 broke above the 2800 mark, and all 11 sectors finished in the Green
  • Weakening USD was an area of support for the broader market and the earnings prospects for multinational companies
  • President Trump issued executive order to ground Boeing’s (NYSE:BA) 737 Max 8 aircraft

The US economy is growing at a 0.4% annualized rate in Q-1, based on the latest monthly data on government spending, the Atlanta Federal Reserve’s GDPNow forecast model showed Wednesday.

This was faster the 0.2 pace for the first-quarter gross domestic product that the Atlanta Fed’s GDP program calculated Monday and up from Zero the week before.

The economy grew at a 2.6% pace in Q-4 of Y 2018 after expanding at a brisk 3.4% rate in the July-September period.

After reports on durable manufacturing and construction spending were released by the US Census Bureau Wednesday, the nowcast of Q-1 real gross private domestic investment growth increased from -2.9% to -2.4%, and the nowcast of Q-1 real government expenditures growth increased from 1.7% to 2.5%

The next GDPNow update is Friday, 22 March.

Construction Spending Spiked in January

The revision came just hours after the government said new orders for Key US -made capital goods rose by the most in 6 months in January and shipments increased, but the trend in both measures of business spending on equipment remained soft, leaving forecasts for weak Q-1 economic growth intact.

The slowing economy is helping keep inflation tame, with other data on Wednesday showing producer prices barely rising in February, resulting in the smallest annual increase in more than 1.5 years. This environment supports the Fed’s wait-and-see approach to further interest rate hikes this year. Patience is still the rule.

Wednesday, the major US stock market indexes finished at: DJIA+148.23 at 25702.89, NAS Comp +52.37 at 7643.40, S&P 500+19.40 at 2810.92

Volume: Trade on the NYSE came in at 970-M/shares exchanged

  • Russell 2000 +15.4% YTD
  • NAS Comp +15.2% YTD
  • S&P 500 +12.1% YTD
  • DJIA +10.2% YTD

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

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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