In this Tuesday, April 16, 2013, photo, Specialist Michael O’Mara, left, and trader Fred Demarco work on the floor of the New York Stock Exchange. World stock markets fell Friday April 26, 2013 after Japan faced an unwelcome drop in consumer prices. (AP Photo/Richard Drew)
NEW YORK (AP) — The stock market stalled Friday after the U.S. economy didn’t grow as much as hoped and earnings from a handful of big companies failed to rev up investors.
The economy grew at a 2.5 percent annual rate in the first three months of the year, the government said. That was below the 3.1 percent forecast by economists.
The shortfall reinforced the perception that the economy is grinding, rather than charging, ahead. Investors have also been troubled by reports in the last month of weaker hiring, slower manufacturing and a drop in factory orders. Many economists see growth slowing to an annual rate of around 2 percent a year for the rest of the year.
U.S. government bonds, where investors seek safety, rose after the report.
“There are some concerns as we head into the summer,” said JJ Kinahan, chief derivatives strategist for TD Ameritrade. “In the last three weeks, we’ve seen numbers that weren’t Login to read more