U.S. stock exchange traded funds rallied Monday on solid Chinese manufacturing data and expectations of a Eurozone debt deal later this week.
However, ETFs could see action on Thursday as markets get the first estimate of third-quarter U.S. economic growth on Thursday in the form of GDP.
According to a Bloomberg survey, economists project that the U.S. GDP expanded at a solid 2.5% annualized rate in the third quarter, compared to the 1.3% gain in the second quarter, reports Alex Kowalski for Bloomberg.
“We’ve gotten a reversal of some of the bigger shocks that really restrained growth in the first half of year,” Michael Hanson, a senior U.S. economist at Bank of America Corp., said in the Bloomberg report. “The economy could grow at the rates we see now or even better if we could avoid some of the shocks from Europe and the uncertainty around U.S. fiscal policy.”
Another weekly poll puts economist expectations for the third quarter GDP at a positive 2.7% and even upward to 3%, reports Justin Lahart for WSJ.com.
“The chances of a recession have diminished quite a bit,” JP Morgan economist Robert Mellman said in the WSJ report. “Everything has been better than people feared it would be.”
JPMorgan revised upward its projected annualized growth in the third quarter to 2.5% from 1.5%.
Normura Securities economist David Resler has raised his estimated GDP growth to 2.8% from 2%.
SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) is down 6.69% over the past three months and is up 3.79% year-to-date. The fund has recently moved above its 200-day exponential moving average.
Max Chen contributed to this article.