U.S. market waits for GDP data

The U.S. Dow Jones Industrial average moved up 122 points last night to finish at 11,167 as fears about Greek debt contagion eased and earnings continued to meet or exceed expectations particularly in the health sector. Bristol Myers (BMS) moved 4% higher after Q1 earnings rose 16% year on year.

Today the FTSE 100 is down around 20 points to 5,601 after a 5% fall in Barclays (BARC) to £3.42 despite a 47% increase in Q1 earnings. Profit before tax from continuing operations rose to £1.82bn from £1.24bn in the first three months of 2009. Investment banking arm, Barclays Capital, earnt £1.47bn, 62% more than Q1 2009. Impairment charges for bad debts dropped 35% to £1.51bn compared with £2.31bn a year ago and 19% less than the figure for the final quarter of 2009, largely due to a £563m reduction to £191m at BarCap. The shares fell because of disappointment at weaker profits in the retail division, with a 6% drop to £403m.

The U.S. GDP data is due at 1.30 pm GMT with an expectation of a 3.2% seasonally adjusted annual rate in the first three months 2010, down from 5.6% in the fourth quarter. This will dicate the direction of the UK and US markets this afternoon.