STOCKS RALLY: Here's what you need to know
Stocks rallied on Tuesday for the first time since Britain's decision to leave the European Union sent global markets into free fall.
First, the scoreboard:
Dow: 17,409.72, +269.48, (1.57%)
S&P 500: 2,036.09, +35.55, (1.78%)
Nasdaq: 4,691.87, +97.42, (2.12%)
WTI crude oil: $47.85 +$1.52, (3.3%)
10-year yield: 1.456% (-0.004)
1. The US economy was not as weak as we initially thought in the first quarter. The Department of Commerce released the third and final (for now) estimate of gross domestic product, which showed 1.1% growth, revised up from the second estimate of 0.8% and the advance print of 0.5%. The first quarter has consistently been revised higher for the past five years, so this improvement was expected. But there was a significant downward revision to personal consumption, which contributes to about 70% of growth. It was dropped to a two-year low of 1.5%, from 1.9%. Economists had expected an upward revision to 2%. Corporate profits were revised higher, and overall gross domestic income was lifted to 2.9%. The more complete data also showed that the gap between exports and imports was narrower than previously thought.
Stocks rallied on Tuesday for the first time since Britain's decision to leave the European Union sent global markets into free fall.
First, the scoreboard:
Dow: 17,409.72, +269.48, (1.57%)
S&P 500: 2,036.09, +35.55, (1.78%)
Nasdaq: 4,691.87, +97.42, (2.12%)
WTI crude oil: $47.85 +$1.52, (3.3%)
10-year yield: 1.456% (-0.004)
1. The US economy was not as weak as we initially thought in the first quarter. The Department of Commerce released the third and final (for now) estimate of gross domestic product, which showed 1.1% growth, revised up from the second estimate of 0.8% and the advance print of 0.5%. The first quarter has consistently been revised higher for the past five years, so this improvement was expected. But there was a significant downward revision to personal consumption, which contributes to about 70% of growth. It was dropped to a two-year low of 1.5%, from 1.9%. Economists had expected an upward revision to 2%. Corporate profits were revised higher, and overall gross domestic income was lifted to 2.9%. The more complete data also showed that the gap between exports and imports was narrower than previously thought.