NEW YORK ( TheStreet) -- Investors on StockTwits.com sought protection in gold and currency hedges Wednesday after the government released GDP estimates that signaled the U.S. recovery may be faltering.
Real gross domestic product grew 0.1% in the first quarter of 2014 from the prior three months, according to advanced estimates released Wednesday by the Bureau of Economic Analysis. That number fell far short of the 1.1% forecast by many economists. And it looked particularly anemic in the face of the 2.6% growth seen in the last three months of 2013.
The StockTwits advanced search bar, currently in beta testing, showed investors discussing GDP also talked about adding to gold positions and buying pounds.
The British pound hovered near multi-year highs against the dollar after the U.S. advance GDP release. Gold, however, edged lower. SPDR Gold Shares (GLD) an ETF that tracks the price of the yellow metal, fell 0.26% by 11a.m.
Surprisingly to some investors, the S&P 500 and the Dow were near flat after the report.
StockTwits' users attributed the lack of negative stock response to expectations that the Federal Reserve would change its policy of reducing monthly bond purchases that stimulate the economy. Many expected the FOMC announcement at 2p.m. to have dovish language, or even more outright suggestions that stimulus reductions should be halted until U.S. economic growth is on sounder footing.
$ES_F $SPY $SLV $GLD Only question now is how dovish yellen will be.They get GDP data in advance, so odds of hawkish statement today near 0 ? M Rush (@panamaorange) Apr. 30 at 10:13 AM
@M5amhan Today's candle or the first 45m candle? Lots if action ahead. Yellen may hold taper this month after crappy GDP print. Who knows? ? Brian Anderson (@briander81) Apr. 30 at 10:07 AM
At the time of publication the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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