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Market Preview: GDP, HJ Heinz, Freescale

NEW YORK ( TheStreet) -- Thursday brings a revision of the government's assessment of first-quarter gross domestic product at 8:30 a.m. ET, and economists are expecting a boost to 2% from 1.8%, according to the consensus estimate compiled by Briefing.com.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, expects an even bigger jump, estimating that upward revisions to retail sales numbers will alone be good for a 0.3% increase.

"The consensus forecast is that the headline number will be nudged up to 2.2%, but we hope rather better, at 2.6%," he said.

The market also gets initial jobless claims for the week ended May 21 and continuing claims for the week ended May 14 before the opening bell. The consensus estimates are for initial claims of 400,000, down from 409,000 in the prior week; and a decline in continuing claims to 3.7 million from 3.71 million.

The major U.S. equity indexes caught a bounce on Tuesday with the Dow Jones Industrial Average breaking a streak of three straight declining sessions with a 0.3% gain.

The action showed signs of sector rotation as consumer staples like Procter & Gamble (PG - Get Report), Kraft Foods (KFT), and Coca-Cola (KO) were weak and the energy, materials and industrial names -- Caterpillar (CAT - Get Report), Chevron (CVX), DuPont (DD), Exxon Mobil (XOM) among the blue chips -- posted smart gains with crude oil again topping $100 per barrel. TheStreet's Jim Cramer cheered the move, saying it "fits the thesis that the industrials have gotten oversold and the staples overbought" in commentary on Real Money.

S&P Equity Research's Sam Stovall got bearish in the near-term on Thursday, saying a correction of 10% or more is a "very real possibility" over the next month or so from a technical perspective, saying: "The global equity markets continue to wrestle with the paradox of rising earnings estimates and declining global economic growth indicators: bond yields, commodity prices and equity returns."

For Stovall, the action in the financials is particularly worrisome.

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