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GDP up 0.2% is better than expected

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Stock futures have turned higher as this morning's economic data showed that gross domestic product actually rose 0.2% in the 4th quarter, which is much higher than the 1.1% decline that many economists had expected. Final sales gained 2.5%, which indicates that inventories were the major restraint for growth in the 4th quarter. With recent economic data improving, this morning's GDP number will only add to the market's perception that the recession may already be over.

FOMC most likely on hold

Today the Federal Open Market Committee is expected to announce its decision on interest rates at approximately 02:15 PM EST. Most economists expect the Fed to keep the Fed fund rate steady at 1.75% with no move on interest rates.

Stock futures in the green

Stock futures rose to their best levels of the morning immediately following the 06:30 AM EST release of the GDP number and are holding near those levels. S&P futures are currently trading higher by 4 points at $1,104, NASDAQ futures are higher by 7 points at $1,537 and Dow futures are up 27 points at $9,630.

Fair value for the S&P 500 today is $0.52. HL Camp & Company has their computers set for program buying at $1.16 and set for program selling at $-1.64. Fair value for the NASDAQ-100 today is $3.35.

Take-Two Interactive files for extension

Take-Two Interactive (NASDAQ:TTWO) filed with the SEC for a 15 calendar day extension to file its 10-K annual report. Trading in TTWO has been halted since January 22nd at $18.56, following the company's postponement of Q4 results to further evaluate the restatement of financial results.

L-3 beats estimates

L-3 Communications (NYSE:LLL) $97.23, reported upbeat earnings this morning of $1.06 per share, which was a penny better than consensus estimates. Revenues in the 4th quarter ending December rose 26.6% to $705.8 million versus the $683 million consensus.

Jeff Bailey
Senior Market Technician
Option Investor

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