GDP data and US employment better than expected
The attention this Wednesday has focused on economic data. Second-quarter GDP has risen by 3% according to the second review by the Bureau of Economic Analysis. This increase is above the expectations of Reuters analysts of 2.7%.
Investor Warren Buffett, skeptically, has told CNBC that US economic growth does not really feel like 3 percent. “The 3% threshold is what President Donald Trump and his administration want to achieve for gross domestic product growth,” he said.
In addition, the ADP employment data has also been published, in which the private sector was known to create 237,000 jobs last month, the highest figure in five months. This figure is also well above the 185,000 jobs expected by the consensus of Reuters.
On the other hand, weekly mortgage applications have fallen 2.3% over the previous week and 25% compared to the previous year. Mortgage interest rates are at the lowest level since last November. One reason is that lower rates are expected.
Cisco Systems (1.62%), Caterpillar (+ 1.33%) and Microsoft (+ 1.31%) have led the gains in the Dow Jones, while Travelers (-0.98%), Johnson & Johnson (-0.86%) and Verizon (-0.8%) have topped the bottom of the table.
In the currency market, the euro corrects in its change against the dollar after reaching the highs of January 2015, above the 1.2070 ‘greenbacks’. This day, the Community currency falls 0.73% to $ 1,1886.
If the Federal Reserve were doubting the withdrawal of stimuli these data better than expected will suppose the definitive yes to withdrawal.