FWIW. Sleeper
Friday April 30, 8:44 am Eastern Time
(Note: this article is ''in progress''; there will likely be an update soon.)
INSTANT VIEW-Dow trend could flatten on strong GDP
NEW YORK, April 30 (Reuters) - U.S. S&P 500 futures were flatter, indicating a cautious stock trend, after the U.S. Commerce Department reported U.S. Gross Domestic Product rose a stronger than expected 4.5 percent during the first quarter.
June S&P 500 futures were up 6 points after the release of the data. Futures were up 9 points ahead of the data.
DOUG MYERS, VICE PRESIDENT, EQUITY TRADE, WACHOVIA SECURITIES.
''Traders hate surprises they might pull stocks back. Things are heating up more than expected.''
Analysts cautioned that the implicit price deflator component of the index, an indicator of inflation, was higher than expected.
JAMES VOLK, CO-DIRECTOR OF INSTITUTIONAL TRADING, D.A. DAVIDSON AND CO., PORTLAND, ORE.:
"The implicit price deflator at 1.4 percent is higher than expected. People are a little disappointed that the price deflator was higher.
''... The futures backed off their highs. I think people will be a little bit more cautious than they would have been if the numbers had come in in line.''
PETER CARDILLO, DIRECTOR OF RESEARCH, WESTFALIA INVESTMENT
''This (GDP figure) is just about what I expected. The price deflation is a bit higher than I thought. Basically, inflation is a bit higher than I expected but the economy is still strong. This should have hardly any effect on the bond market and therefore also not too much of an impact on the stock market.''
PETER CARDILLO, DIRECTOR OF RESEARCH, WESTFALIA INVESTMENT
"This (GDP figure) is just about what I expected. The price deflation is a bit higher than I thought. Basically, inflation is a bit higher than I expected but the economy is still strong.
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