GDP Revision: Friday's Headlines
NEW YORK (
) -- The third and final reading on economic growth in the U.S. for the fourth quarter is due Friday, although market watchers aren't expecting much of a reaction to the data
The government's read on fourth-quarter gross domestic product was revised up in the second, or preliminary, estimate from 5.7% to 5.9%. This time around, no revision is anticipated, so the report may have little impact on the market. Instead, market participants are anxious to see how economic growth in the first quarter is shaping up.
"This report shouldn't have any surprises as it's a second revision," said Paul Nolte, managing director with Dearborn Partners. "Out of all of the data, GDP is the farthest looking back. The first quarter numbers won't come out until late April, though, so by that point it may be old news. Instead, we're getting more economic news and a ton of earnings reports that will likely take the shine off that number."
Nolte said that traders should instead keep a close eye on the bond market, following "a rise in rate across the yield curve." He says the bond market took a hit in reaction to a "terrible week of auctions," including 2-year, 5-year and 7-year notes.
"If that deterioration is not on anyone's radar, it really should be by now," he said. "It should start getting the attention of equity investors because the move in the bond market is telegraphing something, and it's not necessarily inflation."
Also on the economic front, the University of Michigan will post its final reading on consumer sentiment for March. The index is expected to rise slightly to 73 from the prior read of 72.5.
There is little in the way of earnings Friday, but traders will still be reacting to results from several companies reporting after Thursday's clsoe, including
Oracle
(ORCL) - Get Report
,
Accenture
(ACN) - Get Report
and
Finish Line
(FINL)
.
-- Written by Robert Holmes in Boston
.
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