Stocks were mixed on Friday after U.S. economic growth in the first quarter slowed sharply, its worst growth in three years.
The S&P 500 was flat, the Dow Jones Industrial Average fell 0.04%, and the Nasdaq fell 0.2%. The Nasdaq was trading above its record close set a day earlier.
The U.S. economy grew at a pace of 0.7% over the first three months of the year, according to the first estimate of first-quarter GDP from the Bureau of Economic Analysis. Economists surveyed by FactSet had expected U.S. gross domestic product to rise 1.2%. The U.S. economy grew at a 2.1% pace in the fourth quarter.
The first-quarter slowdown was largely tied to conservative consumer spending. Spending rose just 0.3% from January to March, the smallest increase since 2009.
“That weakness, in our view, is likely to prove transitory,” Barclays analysts wrote in a note. “Warm weather reduced utilities consumption, motor vehicle purchases declined to a more sustainable rate, and early in the quarter, tax refunds were delayed. These factors combined with the timing of the Easter/Passover holiday (in April this year) and a weak March employment report likely weighed on consumption growth.
via The Street