U.S. Equities Fluctuate After Report Shows Economy Contracted

U.S. stocks fluctuated, as equities head toward monthly gains, after data showed the economy contracted in the first quarter.

The Standard & Poor’s 500 Index slipped less than 0.1 percent to 2,119.44 at 9:32 a.m. in New York, and is poised for its first weekly drop in four.

The S&P 500 has still advanced 1.7 percent this month, closing at a fresh record last week. The Nasdaq Composite Index and the Dow also rose to all-time highs in May. Investors today have an eye on Europe as stocks there declined for a second day on concern Greece won’t reach an agreement with creditors in time for a debt repayment.

An earlier report showed gross domestic product in the U.S. shrank at a 0.7 percent annualized rate, revised from a previously reported 0.2 percent gain, as the economy was held back by harsh winter weather, a strong dollar and delays at ports. The median forecast of economists surveyed by Bloomberg called for a 0.9 percent drop.

Source: Bloomberg

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