U.S. Stocks Futures Tumble After GDP Trails Economist Estimates
July 30, 2010, 8:48 AM EDTBy Michael P. Regan
July 30 (Bloomberg) -- U.S. stock-index futures tumbled after the government said the economy grew at a 2.4 percent annual rate in the second quarter, trailing economists estimates and adding to concern the recovery is slowing.
Futures on the Standard & Poor’s 500 Index expiring in September lost 0.8 percent to 1,087.4 at 8:31 a.m. in New York. Dow Jones Industrial Average futures sank 79 points, or 0.8 percent, to 10,330.
The S&P 500 has climbed 6.9 percent in July, the biggest monthly advance in a year, as second-quarter earnings topped estimates at about 77 percent of its companies that have reported so far, according to Bloomberg data.
The gauge has fallen 0.1 percent so far this week after consumer confidence slumped more than forecast, orders for durable goods unexpectedly decreased and the Federal Reserve said economic growth has slowed in some areas.
Today’s report on gross domestic product showed the economy has grown for a fourth straight quarter after shrinking for five of the previous six. The S&P 500 slid to a 12-year low of 676.53 on March 9, 2009, as the U.S. economy was on its way to a 6.4 percent contraction for the first quarter of that year, its worst since 1982. The index has rebounded 63 percent since then.
To contact the editor responsible for this story: Michael Regan at mregan12@bloomberg.net
