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Stocks keep falling after GDP miss

David Russell (david.russell@optionmonster.com)

Stocks are lower today, remaining under pressure after economic growth missed estimates.

S&P 500 futures are down 0.7 percent, while most of Europe slid about 0.4 percent. Asia was mostly lower overnight, led by drops of 1.5 percent to 2 percent in Mumbai and Shanghai. Bonds and gold are climbing

United States gross domestic product rose 2.6 percent in the fourth quarter, missing estimates for expansion of 3.2 percent. Weaker business spending and increased imports were to blame. The news comes as the S&P 500 swings between long-term support around 2000, where it bounced sharply yesterday, and resistance around 2065. 
Today's sellers are looking past strong quarterly results from companies such as Visa and Amazon.com. V is up 4 percent after beating estimates and announcing a 4-for-1 stock split. AMZN is surging 11 percent after profit blew past consensus.

The forward calendar remains very active, with more earnings reports and economic data next week. The Institute for Supply Management's manufacturing index is the next big event on Monday.

Aside from an apparent preference for international stocks over domestic, no individual group or sector has been able to show sustained leadership recently, according to optionMONSTER's proprietary researchLAB market scanner. That marks a big contrast with other times in the last two years and may indicate a lack of enthusiasm toward the broader market.

In other news, Intercept Pharmaceuticals surged 34 percent after its prospective liver drug received fast-track designation from the Food and Drug Administration. Tuesday Morning fell in late trading yesterday after earnings and revenue missed estimates. Synaptics is up 11 percent after beating forecasts and Align Technology fell a similar amount on a poor set of numbers.

Gold and silver rose fractionally, while oil and copper weakened after the GDP miss. The safe-haven Japanese yen is also gaining against most other currencies, which reflects potentially bearish sentiment for equities.

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