It's not the news; it's the reaction to the news. Color me shocked that the Spanish market is up well in excess of 1% despite the S&P downgrade. Not sure how you can take that other than bullish.
U.S. Q1 GDP just came out at 2.2% vs 2.6% expectation. This number will be revised multiple times from now and is backwards looking so not much to fuss over. The markets fell slightly on the news but no major negative reaction at this time which is a positive.
Personal consumption was up 2.9% versus expectations of 2.3%; core PCE deflator (a measure of inflation the Fed enjoys) a bit hot at 2.3% versus 1.3% last quarter. Business investment and government spending light. Inventories were a huge help to the number.
But for market participants all that matters is futures are hanging in there despite two body blows.
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