By Anne D. Picker, International Economist and Damir Fonovich, Market Analyst, Econoday
4/27/01

The economic news was good, bad and tepid. Advance first quarter gross domestic product surprised on the plus side growing 2 percent - much higher than analysts' estimates. But advance GDP is generally subject to large revisions, so the jury is still out on the first quarter growth. Housing sales continues to be a bright spot with both existing and new home sales soaring. Durable goods orders roared, that is, until you remove the volatile transportation sector, and then the news was negative. Employment costs rose as did unemployment claims, but they had no lasting impact in the earnings driven markets. Consumer confidence eroded, largely because the surveys were completed before the Fed cut interest rates. The equity markets are getting better at handling disappointing earnings reports, taking them pretty much at face value. Bonds fell on the GDP news while the dollar soared against the euro and yen.