With lower-than-expected growth, it makes the job a lot easier for the Fed -- especially with its two new Bush-appointed members -- to pause from its rate-hiking plan.
Earnings are continuing to show improvement over last week and the market appears to be more focused on that than this morning's GDP numbers.
The brokers have had a tremendous run and have separated from the banks in terms of their performance.
When commodity prices and energy prices weaken, technology stocks usually pick up the leadership and strengthen because they can move inversely to those two areas.
Market participants still expect the Fed to go another quarter point on Tuesday.
There's the potential for a rally in the next few weeks because the market is extremely extended to the downside, and this is historically the place where momentum players would come in and do well.
Imports rose to a record $177.2 billion, while exports also increased, to a record $111.5 billion. This creates a higher probability that the advance fourth-quarter gross domestic product will not be upgraded substantially higher, since a higher trade deficit subtracts from GDP.
Earnings have been mixed, and most companies have been warning that the first quarter is going to be far from stellar. That, combined with a Fed that may still keep hiking rates, is raising the red flag for many investors.
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