Brocker.Org: STOCKS SLIP AFTER GDP WHIFFS: Here’s what you need to know

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People
enjoy the muddy thrills and spills on a waterslide dug into a
hillside in Waimauku on February 23, 2013 in Auckland, New
Zealand.

Phil Walter/Getty
Images


Stocks slid slightly to end the week after US GDP growth missed
the mark, hitting its lowest level in three years.

All three major US stock indexes finished in the red on Friday,
with the Dow Jones industrial average sliding the most.

We’ve got all the headlines, but first, the scoreboard:

  • Dow: 20,940.51, -40.82, (-0.19%)
  • S&P 500: 2,384.20, -4.57, (-0.19%)
  • Nasdaq: 6,047.61, -1.33,
    (-0.02%)
  • US 10-year yield: 2.282%, -0.014
  • WTI crude oil: $49.11, +0.14, +0.29%

  1. GDP for the first quarter of 2017 came in at 0.7%.
    This was
    lower than the 1.0% expected by economists and the slowest pace
    of growth since 2014.

  2. The low GDP came in large part due to a decline in personal
    consumption.
    Personal consumption expenditures grew by only
    0.3% for the first quarter, a serious drop off from the 3.5%
    growth in the previous quarter. Much of the drop was due to
    lower auto sales and energy spending.

  3. However, first quarter GDP is typically low.

    GDP
    has averaged a 0.6% annualized rate in the first quarter since
    2013, despite trend growth rate of 2% to 2.5% over that same
    period

  4. Consumer confidence dipped unexpectedly.
    The consumer
    sentiment index from the University of Michigan slipped
    to 97.0. This was above March’s final reading of 96.9, but
    below economists’ expectations that the index would hold steady
    at its
    preliminary
    reading of 98.0.

  5. Trump threatened to pull out of the free trade agreement with
    South Korea.
     In
    an interview with Reuters
    , the president said he would
    renegotiate or terminate the US’ free trade deal with South
    Korea after his administration finishes the NAFTA renegotiation
    with Canada and Mexico. He said the trade deal, which is
    referred to as KORUS, was “unacceptable” and “horrible.”

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