U.S. equities have moved higher in early trading on Wednesday following yesterday’s better than expected data on durable goods, consumer confidence, and housing combined with some positive comments from Fed members about the Fed’s monetary stimulus program and improving sentiment over China’s credit issues.
This morning investors appear to be overlooking a weaker third revision of U.S. first quarter Gross Domestic Product (GPD) that was reported today from the Department of Commerce, showing lower first quarter growth than was previously reported.
Gross domestic product expanded at a 1.8 percent annual rate, the Commerce Department said on Wednesday, down from estimates of unchanged 2.4 percent growth for the first quarter.
Real gross domestic income (GDI), the sum of all income earned while producing goods and services, increased 2.5 percent in the first quarter.
The downward revision to real GDP reflected downward revisions to personal consumption expenditures, exports, and non-residential fixed investment that were partly offset by a downward revision to imports.
According to the revised date, imports declined 0.4 percent versus a 1.9 percent gain in the first readings.
Exports were revised to a 1.1 percent decline versus a 0.8 percent gain.
Residential investment increased 14 percent versus 12.1 percent.
Consumer spending was lowered to 2.6 percent versus an increase of 3.4 percent.
Services were revised lower to 1.7 percent from 3.1 percent.