Friends
First let’s talk about this morning’s economic data. Our first look at 2nd quarter GDP gave us bit of a surprise as the economy grew at 2.8% vs. the forecast number of 2.1%. Also, personal consumption expenditures price index rose 2.6% for the quarter, down from 3.4% in the first quarter. This has one of the most important data points for the Fed as they continue to fight inflation. On the negative side the personal savings rate continues to decline – 3.5% vs. 3.8% in the first quarter. Also, durable goods orders plunged for the month of June. So, on the surface solid growth with lessening inflation would appear to be just what he doctors ordered. But underneath we continue to see some deterioration in key areas.
All this was a lot for traders to absorb, especially after yesterday’s thrashing that stocks took. Early in the trading session stocks looked like they were going to recover some of yesterday’s losses. But as the trading session wore on sellers reappeared and stocks surrendered most of their gains.
By the close, the Dow Jones Industrial Average was up 81 points to finish the day at 39,935. The S&P 500 was down 27 points to close at 5,399. The Nasdaq Composite Index was down 160 points to close at 17,181. Gold was down $53 to trade at $2,361 per ounce, while oil was up $.58 to trade at $78.17 per barrel WTI.
Man, there is a lot going on right now, earnings, the Fed, politics. Never a dull moment. Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.
