The stock markets in the United States gained today as investors viewed the contraction in the economy during the first quarter as temporary. The Bureau of Economic Analysis released its final estimate of real gross domestic product (GDP) indicating a 2.9% reduction during the first three month of 2014 compared with 2.6% GDP growth in the fourth quarter last year.

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Separately, the Department of Commerce reported that the number of bookings for non-military capital goods excluding aircraft increased 0.7% in May.

PNC Senior Economist Gus Faucher commented, “The bad weather in much of the U.S. in early 2014 was a significant drag on the economy, disrupting production, construction, and shipments, and deterring home and auto sales. Data show growth rebounding in the second quarter, with improvements in home and auto sales and residential construction.”

On the other hand, Scott Clemons, chief investment strategist at Brown Brothers Harriman Private Banking said, “What the market is concluding is that first-quarter weakness was indeed weather-related; and the second quarter is enjoying a bounce back. If you average the two quarters together, what you’re seeing is an economy that continues to expand at a modest pace so the market has shrugged this off.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 16,867.51 (+0.29%)
  • S&P 500- 1,959.53 (+0.49%)
  • NASDAQ- 4,379.76 (+0.68%)
  • Russell 2000- 1,182.68 (0.80%)

European Markets

  • EURO STOXX 50 Price EUR- 3,252.31 (-0.99%)
  • FTSE 100 Index- 6,733.62 (-0.79%)
  • Deutsche Borse AG German Stock Index DAX- 9,867.75 (-0.71%)

Asia-Pacific Markets

  • Nikkei 225- 15,266.61 (-0.71%)
  • Hong Kong Hang Seng Index- 23,866.70 (-0.06%)
  • Shanghai Shenzhen CSI 300 Index- 2,133.37 (-0.53%)

Stocks in Focus

The shares of AbbVie Inc (NYSE:ABBV) rose 2.63% to $55 per share after the company emphasized that its $46.5 billion takeover bid for Shire PLC (ADR) (NASDAQ:SHPG) offers a compelling value for Shire’s shareholders. AbbVie also said it would not rule out a hostile move for the acquisition.

CBS Corporation (NYSE:CBS) increased 6.19% to $62.48 per share after the United States Supreme Court found that Aereo Inc violated the rights of the broadcasting company.

The stock price of Monsanto Company (NYSE:MON) climbed more than 5% to $126.73 per share after announcing its plan to repurchase $10 billion worth of its own stock. The company also announced its decision to begin a public offering of senior notes in the near term, subject to business and market conditions, as well as other prevailing factors.