Midday Market 10/27: GDP growth reverses in Q3, Facebook's dismal ER drags tech

The stock market had a mixed trading session with tech continuing to decline for the second straight day after Facebook's extremely disappointing ER dragging down the entire mega-cap tech sector.

Meanwhile, investors are somewhat more optimistic about Dow Jones and the overall economy after GDP data showed the US economy grew 2.6% in the just-ended Q3.

However, as the press and public speculate that this growth milestone officially indicates no economic crisis will occur, many economists argue that the above GDP figure is just the tip of the iceberg with most growth coming from 'unsustainable' sectors like government spending and trade.

Meanwhile, the real state of the economy continues to decline with durable consumer spending and real investment continuing to plummet. Viet Hustler will have a deeper analysis of the GDP data this weekend to see if this indicator alleviates fears of an economic crisis.

The stock market in general continues in melt-up state with small caps continuing to lead showing fairly stable sentiment despite the drop after earning of the mega-cap tech block. SPY finds support at 380 with bonds yield 10Y breaking below 4.00% relieving some pressure on growth stocks. Overall, internal is in a fairly neutral state with low liquidity showing many signs that money flow will continue to rotate between sectors as investors get clearer on corporate financial situations as well as macro data, creating consolidation in the SPY~382 range in the second half of the trading session.