U.S. Economy Down In First Quarter; Big Day In Supreme Court
According to a report released by the Commerce Department on Wednesday, GDP fell at a 2.9% annual rate instead of a more gradual pace of 1% that was reported last month. This is the worst reading since the same three months in 2009. However, analysts believe that this setback is temporary as the consumer confidence continues to improve and that the economy will rebound. GDP is forecasted to expand at a 3.5% rate in the second quarter. In other news, the Supreme Court of the United States ruled against a streaming TV startup, Aereo, that allowed its customers to watch live and recorded TV online while bypassing cable and satellite-TV providers.This is a major win for broadcast companies, including Comcast (CMCSA) and CBS (CBS), who argued that Aereo was violating the Copyright Act. All three major market indices end the day slightly up.
Word on the Street
- GDP fell at 2.9% annual rate the first quarter.
- SCOTUS rules against Aereo.
- NY AG to file lawsuit against Barclays (BCS) over 'dark pools'.
- Barnes & Noble (BKS) to break up Nook and retail business.
- Walgreen's earnings up 16% in 3Q.
- Twilio, Google (GOOG) and LiveOps to set up call center in a box.
- Cell phone searches will require a warrant.
- Vertex Pharmaceuticals Inc. (VRTX) up on positive drug trials.
Published on Jun 25, 2014By InvestorGuide Staff