Hello MarketClub members everywhere. U.S. economic growth slowed more than expected last quarter on the biggest drag from trade in six years and more moderate consumer spending. However, business investment did pick up, which may be a sign that we can expect faster expansion in 2017.
The gross domestic product (GDP), rose only 1.9 percent in the 4th quarter on the heels of the 3rd quarter's 3.5 percent gain which happened to be the largest increase in two years. The reading fell short of expectations of economists surveyed by Bloomberg News, who had forecast a 2.2 percent annualized growth in the period. Consumer spending, the biggest part of the economy, climbed 2.5 percent, in line with projections.
The results capped growth at 1.6 percent for the full year (2016) and reinforce the leading role of household purchases while showing that businesses are starting to spend again. The strong job market and optimism among consumers and companies for President Donald Trump's policies are likely to keep growth humming along in 2017, though tensions over trade could temper any gains.
Key levels to watch next week:
S&P 500 (CME:SP500): 2,254.25
Dow (INDEX:DJI): 19,677.94
NASDAQ (NASDAQ:COMP): 5,496.82
Gold (FOREX:XAUUSDO): 1,207.17
Crude Oil (NYMEX:CL.H17.E): 52.56
U.S. Dollar (NYBOT:DX.H17.E): 102.96
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
