US stocks end mostly up, rebounding from bad GDP report
A trader working on the floor of the New York Stock Exchange, in New York City, on April 30. PHOTO: REUTERS
US stocks end mostly up, rebounding from bad GDP report
NEW YORK - Wall Street stocks finished mostly higher April 30 after digesting a poor US GDP reading that was offset by solid consumer spending data.
Markets opened sharply lower after government data showed the US economy shrank by an annual rate of 0.3 per cent in the first quarter, amplifying worries about a recession amid President Donald Trump's fast-changing tariff policies.
But equity markets moved gradually higher throughout the day, rising after mid-morning data showed personal spending in March actually topped earlier estimates.
A late day surge lifted two of the three indices into positive territory.
The Dow Jones Industrial Average finished at 40,669.36, up 0.4 per cent and more than 920 points above its session lows.
The broad-based S&P 500 advanced 0.2 per cent to 5,569.06, while the tech-rich Nasdaq Composite Index declined 0.1 per cent to 17,446.34.
Consumers 'despite what they're saying they still seem to be spending,' said Mr Jack Ablin, of Cresset Capital, alluding to survey data showing weak consumer sentiment.
Part of the contraction in GDP was due to a surge in imports from businesses seeking to get ahead of Mr Trump's myriad tariffs.
Besides the GDP data, payroll firm ADP reported that private sector employment grew by 62,000 in April, a sharp slowdown from a revised 147,000 in March.
Mr Ablin said May 2 jobs data for April will be 'one of the most important jobs reports we've seen for a while' in light of uncertainty about the economy.
Among companies reporting results, Starbucks shares fell 5.7 per cent after the coffee giant reported a 50 per cent fall in profits to US$384.2 million (S$502 million).
But travel tech company Booking Holdings rose 3.9 per cent as it reported higher quarterly revenues even as it pointed to 'uncertainty around the near-term geopolitical and macroeconomic environment.' AFP
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