TheStreet.com: Innovation Update: GDP Revision: Tuesday's Headlines

GDP Revision: Tuesday's Headlines

Robert Holmes
12/21/2009 3:57 PM EST

NEW YORK (TheStreet) -- The third and final reading on economic growth in the U.S. for the third quarter is due Tuesday, although trading volume is expected to be light leading up to the holiday.

The government's read on third-quarter gross domestic product was revised down sharply in the second, or preliminary, estimate from 3.5% to 2.8%, as economists had expected. This time around, no revision is anticipated. But with growth prospects for the U.S. uncertain even though the economy is out of a recession, investors will want to see more out of the report than strong government spending.

Traders will be watching the personal consumption expenditures component of the report, which was revised to a rise of 2.9%, down from the original estimate of 3.4%.

However, with the Christmas holiday on the horizon, it is unclear what the reaction from the market will be with so few participants.

"Volume is expected to be light as many traders try to get a jump on the holiday," Robert Pavlik, chief market strategist with Banyan Partners, wrote in an email. "However for those that will be working the economic calendar will do its best in trying to keep things interesting."

Also on the economic docket, the National Association of Realtors will release the November read on existing home sales, which should increase to 6.25 million from 6.10 million in October.

The earnings release schedule is light as well, with Commercial Metals (CMC:) due to report early in the day and Micron (MU:) , Red Hat (RHT:) and Cintas (CTAS:) on tap to report late Tuesday.

-- Written by Robert Holmes in Boston.

Follow Robert Holmes on Twitter and become a fan of TheStreet.com on Facebook.