US stocks close lower
GDP falls short of expectations for Q1
Trump says data is a 'huge' disappointment
US shares closed lower on Friday, with the Dow Jones Industrial down about 40 points.
That index closed at 20,940, or down 0.19%.
The broader based S&P500 shed 4.57 at 2,384, while the tech heavy Nasdaq lost 1.33 at 6,047.
US crude - West Texas Intermediate - was up 0.45% at the time of writing, to stand at US$49.19 a barrel.
GDP data for the first quarter pointed to the weakest growth in the US economy for three years, but analysts say this is likely to be a temporary theme, and a rebound will come.
3pm..US stocks down in afternoon trading
US stocks were under pressure at mid-session, as traders mulled the worse than expected growth figure for the first quarter and mulled over more earnings.
The Dow Jones is down 38 at the time of writing, at 2,094.
The S&P500 is almost five lower, at 2,384, while the Nasdaq exchange is down 2.7 to 6,046.
In London, FTSE 100 closed down over 33 points at 7,203 as GDP stats across the pond also fell short of analyst forecasts.
1.50pm...Another day for corporate earnings...
It was another huge day for corporate earnings in the US.
Bancorp Inc (NYSE: TBBK) up 27% to $6.45, Align Technology (NASDAQ: ALGN) up over 14% to $137.25, Cowen Group Inc (NASDAQ:COWN), up 17% to $15.82,Tivity Health Inc (NASDAQ: TVTY), up almost 15% to $33.95, Alphabet Inc (NASDAQ:GOOGL), up 4.25% to $909.49, and Amazon (NASDAQ:AMZN), up 1.66% to $933.66 all on the back of earnings reports.
10.15 AM...US shares head south...
US benchmarks turned south as the US GDP (gross domestic product) reading for the first quarter missed estimates, following a trend set in the UK.
GDP - the value of all the nation's goods and services - increased at a rate of 0.7% annual pace in the first three months - down from 2.1% in the fourth quarter of 2016.
Remember the dichotomy between hard and soft data? US #GDP at 1.9% y/y indicates moderate economic momentum w hard data being better gauge pic.twitter.com/0Elc6P6bIc
— Gregory Daco (@GregDaco) April 28, 2017
Connor Campbell, analyst at Spreadex, noted that was the worst quarterly reading in three years, providing a bit of 'schadenfreude' for those who aren’t a fan of the thin-skinned President.
However, he caveats: "Trump’s policies can’t/won’t have had much effect on the country’s growth just yet, perhaps explaining why the reaction to the reading was so muted."
On Wall Street, the Dow Jones fell 33 to 20,947, the S&P500 shed three points to 2,385, while the tech heavy Nasdaq exchange was higher, conversely, up 2.47 at 6,051.
The lower US growth figure can be attributed to a decrease in consumer spend, with consumer outlays rising a mere 0.3%, compared to a 3.5% gain at the end of 2016.
In stocks, as expected positive first quarter earnings and a supportive crude price had oil majors Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) rising in early deals. Chevron added 1.02% to stand at $106.55, while Exxon shares added 0.91% to $82.01.
8.20am - US shares poised to go higher...
US stocks are poised to nudge higher ahead of more earnings and data on first quarter US growth.
Donald Trump administration's first economic report is about to be published this morning, while big oil firms Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) are reporting ahead of the bell.
Yesterday, earnings bolstered Wall Street as traders continue to mull over Trump's first 100 days, and whether his policy pledges will see the light of day.
The Dow Jones finished 6.24 higher at 20,981, while the S&P 500 finished up 1.32 at 2,388.
The tech heavy Nasdaq index closed up 23.71 at 6,048. Today, shares in tech giants Alphabet and Amazon Inc (NASDAQ:AMZN) are gaining after very upbeat first quarter results.
Amazon is up 3.51% in pre-market to $32.20, while shares in Alphabet (NASDAQ:GOOGL) is up over 4% to $37.167.
In US futures trading today, the Dow Jones is up 13 points, while the Nasdaq is 2.5 ahead; the S&P500 is up 1.5 points.
In the UK, the FTSE100 is down over 32 points to stand at 7,204 as an initial estimate showed that the UK economy grew by just 0.3% in the first quarter of 2017 - significantly down on the 0.7% growth seen in the final quarter of 2016. In the UK, markets are likely to remain cautious ahead of a General Election - not much more than month away.