Stocks Slide as U.S. Growth Slowdown Raises Concerns
NEW YORK (TheStreet) -- U.S. stocks were dipping into the red Friday as growth in U.S. activity disappointed.
The Bureau of Economic Analysis said that U.S. GDP increased 2.5% in the first quarter after rising 0.4% in the fourth quarter. Analysts, on average, were expecting 3% growth, according to a Thomson Reuters poll.
A drop in government spending took a substantial bite out of GDP in the period, offset by strength in household spending.
The final estimate on the University of Michigan Consumer Sentiment Index was also released this morning, and beat expectations and the prior estimate. It came in at 76.4 in April versus the initial estimate of 72.3; economists were expecting 73.2 in April.
The S&P 500 was down 0.26% to 1,581.10.
The biggest percentage decliner was PerkinElmer
June crude oil futures were slipping 54 cents to $93.10 a barrel and June gold futures were up $9.30 to $1,471.30.
The benchmark 10-year Treasury was rising 9/32, diluting the yield to 1.678%. The dollar was down 0.22% to $82.56 according to the U.S. dollar index.
The DAX in Germany was down 0.16% and the FTSE 100 in the UK was falling 0.4%.
Written by Andrea Tse in New York
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