Both stocks and Treasuriesrallied after better-than-expected GDP growth overshadowed weak personal consumption. Two Dow components, Exxon and Intel fell in the premarket after reporting quarterly earnings that missed expectations and issuing light revenue forecast for the year, respectively. Also, Deutsche Bank AG slashed its revenue outlook for the year after suffering its ninth straight quarter of contraction following the collapse of merger talks with Commerzbank AG. Amazon, on the other hand, traded higher after reporting stronger-than-expected results yesterday along with its announcement to push for one-day delivery for Prime members. Elsewhere, WTI crude retreated, trading below $64 a barrel this morning, and wiped out gains from earlier this week.
The first quarter GDP in 2019 grew 3.20% from 2.20% prior and 2.30% consensus. Exports rose 3.70% in the first quarter, while imports decreased by 3.70%. Disposable personal income increased by 3.00%, while Overall prices climbed by 0.80%. Personal Consumption dropped to 1.20% from 2.50% prior but still topped estimation of 1.00% in the first quarter. GDP Price Index also fell to 0.90% from 1.70% prior vs. 1.20% consensus. Lastly, University of Michigan Sentiment rose to 97.20 from 96.90 prior vs. 97.00 consensus in April.
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Both stocks and Treasuries rallied after better-than-expected GDP growth overshadowed weak personal consumption. Two Dow components, Exxon and Intel fell in the premarket after reporting quarterly earnings that missed expectations and issuing light revenue forecast for the year, respectively. Also, Deutsche Bank AG slashed its revenue outlook for the year after suffering its ninth straight quarter of contraction following the collapse of merger talks with Commerzbank AG. Amazon, on the other hand, traded higher after reporting stronger-than-expected results yesterday along with its announcement to push for one-day delivery for Prime members. Elsewhere, WTI crude retreated, trading below $64 a barrel this morning, and wiped out gains from earlier this week.
The first quarter GDP in 2019 grew 3.20% from 2.20% prior and 2.30% consensus. Exports rose 3.70% in the first quarter, while imports decreased by 3.70%. Disposable personal income increased by 3.00%, while Overall prices climbed by 0.80%. Personal Consumption dropped to 1.20% from 2.50% prior but still topped estimation of 1.00% in the first quarter. GDP Price Index also fell to 0.90% from 1.70% prior vs. 1.20% consensus. Lastly, University of Michigan Sentiment rose to 97.20 from 96.90 prior vs. 97.00 consensus in April.
The curve has bull-steepened with UST 10-Year yield down 3.25 bps.