Big economic news is out today with heavy implications on US equities. Q3 GDP came in much higher than expected at 2.8%. The consensus estimate was 2.0%. The unexpected gains were driven by slowing imports, rising inventory investment, and an increase in state and local government spending. The key here is the rise government spending. That's an area which was significantly depressed during the Great Recession. A rebound in this type of government spending could do wonders for economic growth. Meanwhile, the ECB shocked the markets with a quarter percent rate cut. It's a move that was definitely needed given Europe's growth struggles. However, as conservative as the region has been, it was definitely a surprise to see Draghi pull the trigger. Interestingly enough, stocks are down on renewed fears over a sooner than expected Fed taper.
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Good wrap up thanks Jay - the full article from the Bureau of Economic Analysis for those interested can be read here: http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm