NEW YORK (Reuters) – U.S. stocks fell on Friday after data showed the U.S. economy grew less than expected in the fourth quarter, while weak earnings from Ford and continued caution over Europe’s debt crisis also weighed on the market.
U.S. gross domestic product expanded at its fastest pace in 1-1/2 years in the fourth quarter of 2011, the Commerce Department said, but missed forecasts. A strong rebuilding of inventories and weak spending on capital goods hinted at slower growth this year.
“Today’s GDP numbers while positive indicate that the economy is not really doing all that well and (Federal Reserve) Chairman Bernanke’s extreme policy may be in fact what’s needed,” said Michael Sheldon, chief market strategist at RDM Financial, Westport, Connecticut.
“I wouldn’t be surprised to see some profit-taking at any time, given the recent rally we’ve had.”
Ford Motor Co (F.N) shares fell 5.5 percent to $12.04 after the carmaker reported a
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