SubscribeDaily Futures Commentary October 29, 2009
Thursday, October 29, 2009
Stock index futures are edging slightly higher ahead of this morning’s U.S. Third Quarter GDP Report. The report is expected to show that increased consumer and government spending helped expand the economy for the first time in over a year. Pre-report estimates are for this report to show an increase of 3.2%. A Bloomberg survey shows the possible range of guesses at 2.0% to 4.8%. The market will move on how much above or below 3.2% the actual number is reported.
The overnight strength in equity and gold markets is indicating that traders are leaning toward a better number. This notion is being seconded by the weaker Dollar and Treasuries. Traders are trying to build appetite for risk back into the game following this week’s sell-off in equities.
Even if the number comes out better than expected, gains could be limited. There are a number of traders who feel that the jump in GDP was triggered by government stimulus and if this stimulus is removed the next quarter’s GDP will be labored. The real question is can the growth in GDP be sustained? Some investors also feel that …
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