This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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

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.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HNZ $72.49 0.00%
FSL $0.00 0.00%
ACTV $0.00 0.00%
BIG $45.86 -2.26%
BAC $14.56 -1.56%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs