Friends
The GDP number was just released this morning and the number came in at 1.3% growth for the 2nd quarter. That is pretty anemic growth and the S&P futures sank even lower after the release. Of course, the GDP news pales in comparison to the debt ceiling debate as we seem to be on a crash course for August 2nd. I still think that something will get done, but the politicians are sure giving us an enormous amount of heartburn. The uneasiness in the market place is manifesting itself in lower stock prices as traders are voting with their feet. At this point, it is difficult to be confident in anything going on in Washington.
Although it seems meaningless, with all this political stuff going on, 3/5 of the S&P 500 have reported earnings so far, and 75% of them have beat estimates. Again, corporate America is doing a great job of managing its business, seemingly squeezing every ounce of profitability out of each dollar of revenue. Just remarkable. Unfortunately, it just doesn’t matter until the wonderful men and women in Washington get serious about our country’s reputation.
The S&P 500 futures are trading right near their 200 day moving average, as we look to trade below 1300 as the market opens this morning. Things are likely to be volatile today, so we will attempt to keep you updated.
As Jimmy Buffet recently sang, “we have a lot to drink about”. Indeed.
Have a nice day everyone. We will update you this afternoon as things unfold.
