U.S. equities finished with modest gains after trading in a narrow range, with Boeing a drag on the Dow amid a possible new software issue regarding its grounded 737 Max jet, and as focus on the G-20 summit intensified with uncertainty what a meeting between President Trump and Chinese President Xi over the weekend will bring. Q1 GDP was unrevised at a 3.1% pace of growth and pending home sales came in a tick above estimates, but jobless claims increased by a larger-than-forecasted amount. In other equity news, Dow member Walgreens Boots Alliance rose following its upbeat earnings results. Treasury yields were lower and crude oil prices were mixed, while the U.S. dollar was flat and gold was modestly lower.
The Dow Jones Industrial Average (DJIA) fell 10 points to 26,527, the S&P 500 Index increased 11 points (0.4%) to 2,925, while the Nasdaq Composite advanced 58 points (0.7%) to 7,968. In moderate volume, 727 million shares were traded on the NYSE and 2.0 billion shares changed hands on the Nasdaq. WTI crude oil inched $0.05 higher to $59.43 per barrel and wholesale gasoline lost $0.02 to $1.91 per gallon. Elsewhere, the Bloomberg gold spot price traded $0.66 lower to $1,408.34 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was unchanged at 96.21.
The final look (of three) at Q1 Gross Domestic Product the broadest measure of economic output, showed a quarter-over-quarter (q/q) annualized rate of growth of 3.1%, matching the first revision and versus the Bloomberg forecast of an adjustment to a 3.2% expansion. Q4 GDP grew by an unrevised 2.2% rate. Personal consumption was revised to a 0.9% increase, from the second estimate of a 1.3% gain, where it was expected to remain, and compared to the unrevised 2.5% rise seen in Q4.
On inflation, the GDP Price Index was revised to a 0.9% increase, from a 0.8% gain, and compared to estimates to be unrevised, while the core PCE Index, which excludes food and energy, was adjusted to a 1.2% rise, from a 1.0% increase, compared to forecasts to be unadjusted.
Weekly initial jobless claims rose by 10,000 to 227,000, compared to estimates of 220,000, with the prior week’s figure being revised higher by 1,000 to 217,000. The four-week moving average rose by 2,250 to 221,250, while continuing claims increased by 22,000 to 1,688,000, north of estimates of 1,665,000.
Pending home sales rose 1.1% month-over-month (m/m) in May, versus projections of a 1.0% increase, and following the unrevised 1.5% decline registered in April. Sales were 0.8% lower y/y. Pending home sales reflect contract signings and are a gauge of the pipeline of existing home sales.
The June Kansas City Fed Manufacturing Activity Index fell to 0, from May’s unrevised level of 4, and versus forecasts of a decrease to 1. A reading of zero is the demarcation point between expansion and contraction.
Treasuries were higher, as the yields on the 2-year and 10-year notes, along with the 30-year bond, fell 4 basis points to 1.74%, 2.01% and 2.53%, respectively.
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