The third release of GDP for Q3 surprised to the upside: the annualized growth was revised to 3.1%, from 2.7%, exceeding expectations of 2.8%.
Jobless claims rose to 361K, but this number is still positive. The upbeat numbers support the Santa rally.
While the components of this growth are somewhat worrisome and Q4 doesn’t look so good, a growth level of over 3% seems positive. It’s important to note that the “final” GDP is not necessarily final – the numbers could be revised even years later.
Weekly jobless claims rose from 344K to 361K, within expectations of a rise to 358K. The figures have been better than the period the Sandy Superstorm.
The market still depends on the fiscal cliff more than on anything else. The recent blame game took out some of the wind of the Santa Rally, but these positive figures could certainly lift the mood before Christmas.
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