Stocks opened green this morning despite weaker than expected economic reports. These reports are being ignored for right now as investors are hopeful the Chinese government will step in to help their slowing economic growth. Most of the economic reports this morning painted a dire picture for the U.S. economy.
GDP expanded at a lackluster 1.3% according to the Commerce Department. Economists were expecting the U.S. economy to grow at a 1.7% rate. Durable goods took a big hit in August, falling more than 13%. Analysts were expecting a drop of 5%. The only bit of good news this morning came from weekly jobless claims which fell to 359,000, its lowest level since July. Pending home sales numbers will be released later this morning and they are expected to be flat.
The major stock averages are off their highs this morning and may be reacting to the poor economic news in the U.S. The Dow is up 28 points right now, the Nasdaq is up 7 points and the S&P 500 is up 3 points. [Read more...]