Permanent Value

Stocks Down Despite Positive GDP Report

Michael La Salle
January 29th, 2010

Stocks were down this week as worries over President Obama’s proposal to reform several US industries outweighed strong corporate earnings and a positive GDP report. The Dow Jones Industrial Average was down 1% as the S&P 500 fell 1.6% on the week. The GDP showed the economy grew 5.7% in the fourth quarter of 2009, which is faster than economist forecasts of 4.7%. This is the fastest the GDP was grown in six years. Earnings news was strong this week, as technology giants Microsoft beat earnings expectations of $0.59 cents per share by posting earnings of $0.74 cents per share, and Apple posted earnings of $3.67 per share topping estimates of $2.08 cents per share.