US mkts end off day's low post Fed raises 2010 GDP forecast

The US markets ended off day's low after Fed raised 2010 GDP forecast while shrugged off lower than expected preliminary 3Q GDP data. Fed raised its GDP target for 2010 to the range of 2.5% to 3.5% from prior forecast of 2.1% to 3.3% in July.

By Varinder Bansal, Research Analyst at CNBC-TV18

The US markets ended off day's low after Fed raised 2010 GDP forecast while shrugged off lower than expected preliminary 3Q GDP data.

The Dow Jones Industrial Average ended down 17 points at 10,434, which saw recovery of 75 points from day's low of 10,359.

The Nasdaq Composite ended down 6.8 points at 2,169, after seeing recovery of 14 points from day's low of 2,155.

The S&P 500 index ended flat at 1,105, after seeing recovery of 8 points from day's low of 1,098.

Asian markets opened marginally higher. Taiwan was up 0.7%. Straits Times, Hang Seng and Shanghai were up 0.4%. Nikkei was flat. SGX Nifty rose 0.3%.

European markets ended lower on Tuesday. The CAC was down 0.75%, DAX down 0.55% and FTSE down 0.6%. CBOE VIX was down 3.2% at 20.47.

Alert: UK GDP, US New Home Sales data to be released today.

US Economic News

Fed raised its GDP target for 2010 to the range of 2.5% to 3.5% from prior forecast of 2.1% to 3.3% in July.

Fed forecasted 2010 unemployment rate at 9.3%-9.7% from prior forecast of 9.5%-9.8%.

US 3Q preliminary GDP was at 2.8% against advance estimate of 3.5% (Final GDP data yet to be released for US).

Nov Consumer Confidence was at 49.5, better-than-expected.

US home prices rose for the fifth month.

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