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US GDP Growth at 2% as Consumer Confidence Hits a Five-Year High

By: , dated October 26th, 2012
The annual rate of growth for GDP in the US was released on Friday by the Commerce Department at 2%, higher than the previous quarter’s rate of 1.3%. The jump was most likely due to an increase in government spending, consumer confidence and personal consumption. It was announced that the US level of consumer sentiment reached a five-year high, an encouraging economic sign. Many companies released positive earnings reports today, including Comcast Corp. (CMCSA), Merck & Co. (MRK) and VeriSign, Inc. (VRSN). Although there were numerous upbeat reports, disappointing earnings from the past couple of days and growing economic concerns dragged down global stocks. Citigroup (C) decided to fire analyst Mark Mahaney for alledgedly covering up a disclosure violation and was is being fined $2 million by a Massachusetts securities regulator. Oil ended the day slightly higher despite having a poor week and US treasuries rose and are not expected to move much until after the presidential election at the start of November.

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