Stocks Are Set To Slingshot To Record Highs
Dow futures are up 70 points. S&P 500 futures are up 7 points.
Assuming markets open in this direction, we should see all-time highs. The S&P 500's all-time high was set at 2,079 on Dec. 5. The Dow set an all-time high of 17,991 that same day.
The rally follows a strong upward revision to US GDP.
In Q3, the pace of GDP accelerated to 5.0%, which is the fastest pace since Q3 2003. This was up from an earlier estimate of 3.9%, and it was much stronger than the 4.3% forecast by economists.
Growth was driven by personal consumption, which was revised up to 3.2% from an earlier estimated of 2.2%.
"Growth won't be quite as strong in the fourth quarter. Indeed, November's durable goods orders figures suggest that business investment has slowed significantly, from 11.0% in the third quarter," Capital Economics Paul Dales warned.
Dales cited today's November durable goods order report, which disappointed. Orders unexpectedly fell 0.7% in during the month, which was much worse than the +4.0% expected by economists. Nondefense capital goods orders excluding aircraft, or core capex, went nowhere; economists were looking for 1.0% growth.