GDP Hits Mark, Stocks Open Flat
Shain Vernier • 1 min read
Stocks have opened largely flat following release of the U.S. Q1 Annualized GDP figure. GDP hit its mark at 3.1%, reassuring skeptics that the U.S. economy has continued to grow at a formidable rate. The result has been a muted Wall Street open with the DJIA DOW (+24), S&P 500 SPX (+13), and NASDAQ (+52) trading sideways through the first 30 minutes of action.
Much is being made in the financial media about this weekend’s G20 Summit and the potential for a Trump/Xi trade war breakthrough. Whether or not that occurs is anyone’s guess; however, this morning’s GDP figures came in right on schedule:
Event Actual Projected Previous
Core Personal Consumption (QoQ, Q1) 1.2% 1.0% 1.0%
GDP Annualized (QoQ, Q1) 3.1% 3.1% 3.1%
GDP Domestic Price Index (Q1) 0.6% 0.8% 0.5%
If nothing else, today’s group of stats should go a long way to reassuring investors in the viability of the U.S. economy. Consumption is up modestly and GDP remains solid. All in all, this was a positive release in that it did not spur more talk of recession.
Solid GDP Report Spurs S&P 500 Futures
Following back-to-back losing sessions, price action is on the bull for September E-mini S&P 500 futures. Bids are hitting the market, driving prices toward the daily Double Top area.
Bottom Line: As we roll toward the weekly close, the S&P 500 appears poised for a rally. With GDP being a non-factor, a test of the daily Double Top pattern (2967.75-2969.25) may be in the offing.
Until elected, I will have sell orders queued up in the September E-mini S&Ps from 2965.25. With an initial stop at 2970.75, this trade produces 22 ticks profit on a 1:1 risk vs reward management plan.