Market Economic NewsBefore 8:30 AM EST treasury markets were trading slightly weaker and stock indexes a little better, it changed after the 8:30 AM EST release of Q4 GDP. Expected at a growth rate of 3.1%, as reported +2.8%; the 10 yr note bounced up a little and mortgage prices improved and stock indexes declined. The report is the first of three over the next three months and usually gets revised when the preliminary report hits next month; nevertheless after the Fed released its weaker forecasts for growth in 2012, and 2013 on Wednesday the softer Q4 growth is getting a lot of attention this morning. If inventory builds are removed GDP was up just 0.8%. For all of 2012 growth up 1.7% compared with +3.0% in 2010. Consumer spending in Q4 was up 2.0%, economists were projecting +2.4%, Q3 up 1.7%---holiday shopping was less than estimates. Q4 savings rate declined to +3.7%, the lowest in years.
The final data this week at 9:55 AM EST; the U. of Michigan consumer sentiment index, expected at 74.0, as reported 75.0, up frm 69.9 at the end of December. Current conditions at 84.2, expectations at 69.1 frm 68.4 two weeks ago, 12 month outlook 82 frm 79 two weeks ago. The sentiment and current conditions the highest since February 2011. There was no reaction to the data in either stock indexes of the bond markets. 
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