The FOMC's positive assessment of the U.S. economy and decision to scale back asset purchases by another $10 billion breathed new life into the stock market Wednesday after the dismal Q1 GDP revision threatened to halt Wall Street's two-day winning streak.
All major indices close with constructive gains with the S&P 500 outperforming due to strength in telecom and utility stocks. The Dow Industrials rebounded off key support at 16,500 to close at a record high for the first time this year as the Nasdaq Composite recovered choppy trade to also end higher.
Blame It On The Weather
The severe winter weather took a documented toll on the economy last quarter causing growth to come to near standstill. First quarter GDP was revised downward to only 0.1% from 2.6% initially, and much worse than an expected revision to 1.1%. While it was obvious that the data was skewed by bad weather, the knee-jerk reaction in the market sent stocks into negative territory, exacerbating an already defensive Nasdaq on disappointing results from Twitter (NYSE:TWTR) and eBay (NASDAQ:EBAY).
But the defensive tone was mitigated by an earlier bullish report on the job market from ADP which found that private payrolls rose by a greater than expected 220,000 in April, beating forecasts of +210,000 and following an upwardly revised 209,000 in March. This is expected to translate into upward revisions to Friday's non-farm payroll report, currently at +215,000 new jobs in April.
Here's Where The Markets Stood At The Close
US MARKETS
- Dow Jones Industrial Index was up 45 points (+0.3%) at 16,580
- S&P 500 was up 5 points (+0.3%) at 1,883
- Nasdaq Composite Index was up 11 points (+0.3%) at 4,114
GLOBAL SENTIMENT
- FTSE 100 was up 0.15%
- Nikkei 225 was up 0.11%
- Hang Seng Index was down 1.42%
- Shanghai China Composite Index was up 0.30%
UPSIDE MOVERS
- (+) ZA Reported weaker earnings compared to the year-ago period, but announced a dividend.
- (+) UBIC Announced the commercial introduction of its Lit i View ANALYZER
- (+) ALLT Sales beat street estimate and EPS matches; new CEO named
DOWNSIDE MOVERS
- (-) NYMX Prostrate cancer drug study can't assess primary endpoint but shows benefit
- (-) RM Reported a sharp decline in Q1 EPS, missing analyst estimates.
- (-) POWI Results for Q1 fell short of analysts' expectations, provided revenue guidance for Q2 below Street forecasts.
After Hours Stock News From Midnight Trader.
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