STOCKS FALL: Here's What You Need To Know

First the scoreboard:

Dow: 14,712, +11.7 pts, +0.0%
S&P 500: 1,582, -2.9 pts, -0.1%
NASDAQ: 3,279, -10.7 pts, -0.3%

And now the top stories:

• The Bureau of Economic Analysis published its first estimate of Q1 real GDP, and the report was mixed. GDP grew at a 2.5% rate, which was well below the 3.0% growth rate expected by economists. However, the personal consumption component was strong, growing at a 3.2% rate versus economists' estimate for a 2.8% rate.
• "The unexpectedly large drag from defense spending was likely due in part to the first effects of sequestration, but could also be explained by constraints imposed by operating under a continuing resolution, which funded the government through March 27," said Goldman Sachs' Jan Hatzius. Real defense spending contracted at an 11.5% rate in Q1, following a 22.0% rate of contraction in Q4. This is the "weakest two quarter run for defense spending since the end of the Korean War," noted JP Morgan's Michael Feroli.
• "Year-over-year nominal GDP growth at or below 3.7% has occurred only in recessionary context," noted the unusually bearish economist Lakshman Achuthan. "Q1 2013 read is 3.4%, the second straight quarter below 3.7%." Here Are 12 Popular Myths About The US Economy >
• The University of Michigan's closely followed estimate of April consumer confidence was revised up to 76.4 from a preliminary reading of 72.3. This was much better than the 73.5 level economists were looking for. Still, this was down from the March reading of 78.6.
• Among the big movers in the stock market was JC Penney. Yesterday after the closing bell, George Soros disclosed that his fund had accumulated a 7.9% stake in the company. And during the trading session today, CNBC reported that it had secured new debt financing from Goldman Sachs. Each piece of news gave the stock a nice boost.
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