Financials News

US stocks retreat after downbeat GDP report

US stocks retreat after downbeat GDP report

New York: US stocks declined with the Dow Jones Industrial Average snapping a twelve-day winning streak, as investors meditated on the latest revision to the country’s fourth-quarter economic growth.

The Dow Jones Industrial Average fell 25.20 points on Tuesday, or 0.12 per cent, to 20,812.24. The S&P 500 lost 6.11 points, or 0.26 per cent, to 2,363.64, Xinhua news agency reported.

The Nasdaq Composite Index was down 36.46 points, or 0.62 per cent, to 5,825.44.

US Real gross domestic product (GDP) increased at an annual rate of 1.9 per cent in the fourth quarter of 2016, missing market consensus of 2.1 per cent, according to the second estimate released by the Commerce Department. In the third quarter, real GDP increased 3.5 per cent.

Real GDP increased 1.6 per cent in 2016, unchanged from the first estimate a month ago.

In a separate report, the department announced that the international trade deficit was $69.2 billion in January, up from $64.4 billion in December.

Meanwhile, the Conference Board Consumer Confidence Index came in at 114.8 in February, up from 111.6 in January.

Investors also kept a close eye on US President Donald Trump, who is going to give his first speech to a joint session of Congress on Tuesday night. Markets expected Trump to unveil some elements of his plans to cut taxes, including tax cuts for the middle class, and simplification of the tax system.

Overseas, European equities increased broadly on Tuesday.

In Asia, Tokyo stocks also ended higher after choppy trade, with the 225-issue Nikkei Stock Average moving up 0.06 per cent to 19,118.99 points.