Stocks rally after weak GDP

  @CNNMoneyInvest June 26, 2013: 4:26 PM ET
u.s. stocks, dow

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Bad news is good news?

U.S. stocks rose sharply Wednesday as investors bet the weak GDP reading would keep the Fed's stimulus going.

The Dow Jones industrial average jumped 150 points, or 1%. The Nasdaq gained 0.9%, while the S&P 500 jumped 1%.

Markets have been volatile lately, driven largely by fears that the Federal Reserve could begin to ease its stimulus measures by the end of the year. (Investors yank record $62 billion from bonds)

But those fears took a backseat following the Commerce Department's worse-than-expected report on first-quarter gross domestic product, which showed the economy grew just 1.8% during the first quarter. The prior estimate showed an annual increase of 2.4%, and economists were expecting that figure to hold.

Click here for more on stocks, bonds, commodities and currencies

"There is a clear disconnect from what the Fed is reviewing and Main Street is living," said Todd Schoenberger, managing partner at LandColt Capital, in a client note. "The pathetic part of it all is Wall Street will see this as good news as stocks will most likely rally on hopes of an extended period for more bond buying."

Related: The Fed may kill bank stocks

Gold slumps: Gold prices fell more than 4% to to a 34-month low of $1,223.20 an ounce, before trimming some of those losses.

Gold has been dragged down by the market rout that accompanied Fed chairman Ben Bernanke's comments last week about potentially pulling back on bond buying later this year.

Gold mining companies Randgold Resources (GOLD) and Barrick Gold (ABX)fell 5% and 8%. The SPDR Gold Shares Trust (GLD) ETF fell 4%.

Related: Fear & Greed Index continues to show extreme greed

What's moving: Shares of Smith & Wesson (SWHC) declined even after the gunmaker reported record sales and vowed to ramp up manufacturing.

General Mills (GIS, Fortune 500) slipped after the food company reported earnings in line with forecasts but a weak guidance for the year.

Shares of Apollo Group (APOL), which owns for-profit University of Phoenix, slid after the company reporting disappointing quarterly profits.

Monsanto (MON, Fortune 500) reported better-than-expected earnings and reiterated its outlook, and shares turned higher.

Can Pandora top Sirius XM?

Pandora (P) shares gained ground after analysts at Cowen and Co. upgraded the company's shares to outperform. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 5:45pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.19 -0.02 -0.09%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.26%
15 yr fixed3.36%3.27%
5/1 ARM3.37%3.27%
30 yr refi4.31%4.24%
15 yr refi3.34%3.25%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.