Trading the Advance GDP Numbers

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by S. Wade Hansen

Advance Gross Domestic Product (GDP): A Glimpse Into the Health of the Economy

Once a quarter, the Bureau of Economic Analysis gives us a glimpse into the state of the U.S. economy by releasing its Advance Gross Domestic Product (GDP) numbers. Traders love this information because as goes the economy so goes the stock market. Trading the Advance GDP Number

The higher the Advance GDP number, the stronger the economy is and the higher stock prices will typically go.

The lower the Advance GDP number, the weaker the economy is and the lower stock prices will typically go.

Of course, there are certainly other factors you should be looking at when determining the health of the economy so Don't Read the News in a Vacuum.
What is the Advance Gross Domestic Product (GDP) Number?

The Gross Domestic Product (GDP) number is the broadest measure of economic activity for the U.S. economy. GDP measures consumption + gross investment + government spending + (exports - imports).

The Advance GDP is the first GDP announcement the Bureau of Economic Announcement makes. The Advance GDP number is followed up by the Preliminary GDP, which is followed up by the Final GDP number.

You can see the most recent Advance Gross Domestic Product (GDP) report here.

Stocks to Watch

The Advance GDP number is especially important for shareholders in the nations largest companies. When you see the Advance GDP number rising, it is a good sign for most companies and will typically have a positive impact on the price of their stocks. When you see the Advance GDP number falling, it is a bad sign for most companies and will typically have a negative impact on the price of their stocks.

Here are a few of the companies with broad economic reach you should keep an eye on:

- General Electric (NYSE: GE)

- The Walt Disney Company (NYSE: DIS)

- Time Warner Inc. (NYSE: TWX )

- Google Inc. (NSDQ: GOOG)

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Comments Add New
Jeff Meadows  - Just Testing   |2009-02-01 04:32:03
This is a test comment
Elamar  - usd goes down if GDP comesup good?   |2009-07-30 15:06:54
If the stocks go higher with a good GDP report, the USD dolar goes down?
malik yasir arafat  - Effect Of GDP on Us Dollar   |2009-07-30 15:20:56
yes there is effect of GDP on $ a weak data rises demand for $ but strong data
decrease dollar but for short term reason beang is that weak data means that
either the short fall is in consumption or in investment or in govt spending and
trade deficet these all things need more money specially trade deficet so what i
feel is that weak data may give strong support to $. that is my personal
comments and not a investment advice
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