Skip to comments.S&P 500 hits record high on growth bets despite GDP contraction
Posted on 05/29/2014 7:43:34 AM PDT by SeekAndFind
U.S. stocks rose at the open on Thursday on expectations of strong growth in the second quarter, even as data showed the world's largest economy contracted in the first quarter.
Supporting the push to a fresh record high on the S&P 500, the number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to a strengthening labor market.
"Personal consumption was actually revised up, it was a big number and it held," said Phil Orlando, chief equity market strategist at Federated Investors in New York, speaking of the internals of the GDP data.
"This gives me greater confidence that we're looking at 3 handles on GDP for the rest of the year."
(Excerpt) Read more at reuters.com ...
Negative growth! Thank you Obama. Thank you Democrats! Hello Zimbabwe.
My guess is that this would be a great time to short stocks...
Winner winner chicken dinner (at least until the Federal Reserve stops doping the system).
-1% GDP in Q1 and the markets shrug it off. I just don’t get it. Wall Street seems a bigger gamble than Las Vegas Blvd.
Apparently Q2 GDP will be boosted by Inventory re-building. You can safely ignore the fact that the NAR says there are higher inventories of houses and that GM has record inventories of cars.
Anomaly, though, as the winter was EXTREMELY cold. It was the first COLD winter on record.
The market gets its gambling funds from the fed now, they don’t have to deal with things like productivity or growth or tangible gains anymore. All one has to do is cook the books and blow smoke up the shareholders asses long enough to make the next quarterly report look good, and milk it all dry and get out before the shareholders and investors wise up.