The government reported today that the economy fell by 6.1% during the first three months of the year which is more than the 4.7% drop expected by economists. The bright spot is that consumer spending increased by 2.2%. During the fourth quarter of 2008, the economy contracted by 6.3%.
This is the first estimate of first-quarter GDP growth. This number will be revised at the end of May and again at the end of June.
Also this morning, the Federal Reserve now says that six of the 19 banks in the stress test need to raise more money. This will cause more financial stocks to consolidate and should help the relative performance of growth stocks.