Markets Down Slightly on Disappointing GDP Data (GRPN, GPS)
Stocks ended the day down slightly on news that U.S. GDP had grown slower than analysts had forecast in Q4. GDP grew by just 0.1%, on a forecast of 0.5%, and was the lowest since Q1 of 2011. Thursday saw positive employment news as jobless claims dropped last week to a seasonally adjusted 344,000. Shares of struggling Groupon (GRPN) fell by nearly 25%, but rebounded after hours on news that the company parted ways with CEO Andrew Mason. Clothing retailer Gap (GPS) reported an increase in Q4 net income of 61%.A report from the Federal Reserve Bank of New York showed that consumer debt rose in Q4 of 2012 for the first time since the financial crisis began, which many analysts see as a positive sign for the economy.
Word on the Street
- US Airways (LCC) and American moved one step closer to a merger as flight attendants voted to ratify.
- Salesforce.com (CRM) reported earnings that blew away analysts' expectation.
- Cost-cutting helped Sears (SHLD) to beat earnings forecasts.
- All major indices finished ahead for the month of February.
Published on Feb 28, 2013By InvestorGuide Staff