Wednesday, April 30, 2008

Stocks up before FED meeting

Stocks advanced before the FED meeting this PM. Dow was up 84 (helped by GM and P&G), advancers ahead of decliners 3-2 & NAZ was up 13. The Commerce Dept reported the US economy grew at a meager 0.6% rate in Q1 as housing & credit problems slowed consumers & businesses. This pace matched Q4 of 2007. While not defined as a recession, the economy continues to be stuck in a rut with modest growth. After yesterday's sharp fall, oil rose 60¢ to 116.23.

GM (GM) lost over $3B in Q1 on weak US sales. Excluding one-times charges, EPS was 62¢ beating analysts forecasts sending the stock up 1.93. Procter & Gamble (PG) reported excellent earnings from cost controls & price increases, the stock rose 2.10. Time Warner (TWX) reported lower earnings & decided to spin off its cable business. The stock dropped 11¢. Let's see what the FED meeting brings.

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