Major averages closed down yesterday on volume that was flat to higher than Wednesday's volume. The Russell 2000 finally broke its 15-day winning streak, closing down 1.29% as it led to the downside. After a sharp upside run following the election, the indexes are in a position to pull back.
The second estimate of third quarter GDP came in at +3.2%, up from the 2.9% increase observed in the preliminary reading, and almost matching consensus of of 3.0%. The third quarter GDP Deflator was revised down to 1.4% from 1.5% while the consensus expected no change.
The important oil summit meeting will be taking place shortly. Concerns are that a deal will not be reached. Goldman Sachs says futures are pricing in a just 30% chance of a production-cut deal getting done. Others are putting the odds of success on Wednesday at less than that. Analysts say that if no deal is reached, it could spill over into equity markets. Oil is trading lower by 3%.
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