April 27, 2018
GDP proved respectable but soft at 2.3 percent, for a first quarter that marked a sharp slowing in consumer spending. But business investment was solid as were exports while inventories offered their own welcome plus. The first quarter is in the books and will likely be forgotten as an outlier in a run of stronger results to come.
Markets in the week were headlined by a brief break of 3 percent for the 10-year Treasury yield which however edged back below to end the week unchanged at 2.96 percent. High rates have been helping the dollar with the dollar index, at 91.51, rising a sharp 1.2 percent in the week to trim its year-to-date loss to only 0.8 percent. The Dow slipped 0.6 percent in the week to 24,311 to widen its year-to-date loss of 1.7 percent.