U.S. Growth Disappoints, Stock Futures Dropping
NEW YORK (TheStreet) -- Stock future declines deepened Friday after a report showing less than expected first-quarter GDP growth.
The Bureau of Economic Analysis said that U.S. GDP increased 2.5% in the first quarter after rising 0.4% in the fourth quarter. Analysts, on average, were expecting 3% growth, according to a Thomson Reuters poll.
Futures for the S&P 500 were down 5.25 points, or 3.41 points below fair value, to 1,576.5.
The final estimate on the University of Michigan Consumer Sentiment Index, to be released at 9:55 a.m., is expected to come in at 73.2 in April versus the initial estimate of 72.3.Coinstar, Inc. (CSTR) was jumping 10.85% to $61 after the owner of Redbox DVD rental machines hiked its full-year earnings outlook after posting first-quarter earnings of 93 cents a share, surpassing estimates by seven cents as growth strengthens at its Redbox business. The company also said that it's waiting for shareholder approval to change its corporate name to Outerwall. DR Horton (DHI) was popping 5.3% to $25.83 after the homebuilder produced fiscal second-quarter earnings of 32 cents a share, beating estimates by 13 cents, with revenue also topping forecasts as net sales orders grew 34% from a year ago. Sales order backlogs increased 54%. Tyco International (TYC) was rising 1.67% to $31.60 after the maker of security systems booked fiscal second-quarter earnings of 42 cents a share, surpassing estimates by three cents while also beating on the top line. George Soros revealed he had taken an 8% stake in JCPenney (JCP), the struggling retailer. Soros Fund Management disclosed in a Securities and Exchange Commission 13G filing, dated April 15, that it bought 17.4 million shares, or a 7.9% stake in the retailer's stock. JCPenney was surging 7.87% to $16.44. Futures for the Dow Jones Industrial Average were down 46 points, or 31.8 points below fair value, to 14,607. Futures for the Nasdaq were down 11 points, or 8.46 points below fair value, to 2,833. The DAX in Germany was down 0.46% and the FTSE 100 in the UK was falling 0.52%. The Hong Kong Hang Seng index finished up 0.65% and the Nikkei 225 in Japan closed down 0.3%. June crude oil futures were slipping 32 cents to $93.32 a barrel and June gold futures were up $3.40 to $1,465.40. The benchmark 10-year Treasury was rising 6/32, diluting the yield to 1.688%. The dollar was down 0.06% to $82.69 according to the U.S. dollar index. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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