U.S. Stocks Extend Rally As Easing Worry Tempers

U.S. stocks ended higher on Wednesday after the latest revision to Q1 GDP showed growth was below expectations. That dampened expectations that the Federal Reserve will soon rein in monetary policy. Richmond Fed President Jefferey Lacker also reportedly said late in the day to Bloomberg Television that the market has gotten a bit ahead of the Fed and that the Fed is not anywhere near cutting the size of its balance sheet.

Revised Data
Q1 GDP was revised sharply lower, from 2.4% initially, to 1.8% due to downward revisions to personal consumption expenditures, exports and non-residential fixed investment. The price, or inflation, index notched up to 1.2% from 1.1% initially. Excluding the volatile food and fuel component, inflation was revised to 1.7% from 1.6% initially.

In Europe, stocks finished higher, tracking the NY markets as well as an increase in the German consumer climate index. Dovish comments from European Central Bank President Mario Draghi and Bank of England policy maker, David Mills, stating the lingering necessity for easy monetary policy, gave European bonds a boost with yields falling as much as 8 basis points.

Gold futures slumped, closing at their lowest point since August 2010. Gold shed 3.6% in the session to touch $1,229.80 an ounce. Silver also plunged, dropping 4.69% in the session. Oil closed slightly higher following the latest inventories data. West Texas Intermediate futures added 0.26%.

Here's Where The Markets Stood At Day's End

• NYSE Composite Index up 150.21 (+1.02%) to 14,910.52
• Dow Jones Industrial Index up 15.25 (+0.96%) to 1,603.28
• S&P 500 was up Nasdaq Composite Index up 28.34 (+0.85%) to 3,376.22

• FTSE 100 was up 69.32 (+1.14%) to 6,171.02
• DAX was up 136.97 (+1.73%) to 7.946.98
• CAC 40 was up 72.81 (+2.00%) to 3,722.75
• Nikkei 225 was down 135.33 (-1.04%) to 12,834.01
• Hang Seng Index (HSI: HK:HSI) was up 482.83 (+2.43%) to 20.338.55
• Shanghai China Composite Index (SHA: CN:000001) was up 1.08 (+0.06%) to 1,951.50

• (+) P, Upgraded to outperform by Cowen with a 33% increase in its price target.
• (+) HNSN, Coverage initiated by Cowen with an Outperform rating and $3 price target.
• (+) PZZI, Pie Five Pizza Co. unit has awarded an additional 15 franchise units to L. Gale Lemerand, bringing the total to 25 restaurants in Florida.

• (-) APOL, Reported disappointing Q3 results with EPS falling to $1.05 from $1.18 for Q3 2012.
• (-) FCFS, Due to falling gold prices and the Mexican peso, earnings were reduced to $2.75 to $2.90/share from $3.10 to $3.24 per share, initially.