Q1 GDP Shows Growth, ETFs Yawn
Friday, April 30th, 2010Tom Lydon submits:
Stocks and exchange traded funds turned sour despite a report showing consumer-led GDP growth in the first quarter, the third consecutive quarterly gain and yet another sign that the economy’s free-fall is becoming a memory.
The economy’s 3.2% growth rate in the first quarter is attributed to a solid rebound in consumer activity. American shoppers increased their spending by 3.6%, the strongest rate of growth in more than three years. Consumer spending grew 1.6% in the fourth quarter. Better still is that consumers appear to be moving on from purchasing just staple items to buy appliances, recreational goods, clothing and dinners out. Consumer Discretionary Select Sector SPDR (XLY) is trading down this morning, despite the report. [Retail ETFs Near 3-Year Highs.]
