Business Headlines: Q2 GDP Contracted 1.0%
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Business Headlines - Q2 GDP Contracts
Q2 GDP contracted at an annual rate of 1.0%, worse than was foreseen by economists surveyed by Bloomberg. The consensus forecast was for a 0.7% decline, according to Bloomberg, but -1.5% according to Barron's. This data was made even harder to digest, as the Bureau of Economic Analysis revised first quarter GDP lower, to -6.4%, from the earlier reported -5.5%. This, by far, is the worst economic decline since The Great Depression.Despite all the worse than foreseen data, a lesser rate of contraction should still prove soothing to market enthusiasts. Still, the greatest positive contributors to GDP were federal, state and municipality government spending. We would have hoped to have seen some sign of natural support. Instead, the usual suspects of depressed real estate activity, light export demand and nonexistent personal consumption kept things cool. Futures are lower this morning, but we're not convinced stocks will close the day decisively lower.
Employment Costs
Employment Costs are released with the GDP data. Costs rose 0.4%, more than economists were looking for (0.3%). The federal minimum wage was hiked in July though, so Q3 should offer a more significant increase.
Chicago PMI
The tally of Midwestern manufacturing activity, the Chicago Purchasing Managers Index, is due at 9:45 a.m. Friday. Given the revival of the auto sector, and we use that word loosely, economists are expecting an improvement in this metric to 44.0 for July, versus the 39.9 take in June. Remember, when the index is short of 50.0, it signifies economic contraction.
Farm Prices
Farm Prices will be reported at 3:00 p.m., but most of you will miss it as you plan your weekend. The changes in pricing are greatly dependent on allocated acreage per crop and the development of those crops (weather, etc.), but also on the general local and global economic demand for foods and the use of foods in energy development.
Corporate Earnings Slate
The earnings slate includes Allergan (NYSE: AGN), Anglo American (Nasdaq: AAUK), AngloGold Ashanti (NYSE: AU), Apartment Investment Management (NYSE: AIV), Autonation (NYSE: AN), Calpine (NYSE: CPN), Chevron (NYSE: CVX), CNA Surety (NYSE: SUR), Constellation Energy (NYSE: CEG), Dominion Resources (NYSE: D), DryShips (Nasdaq: DRYS), FUJIFILM Holdings (Nasdaq: FUJI), Harte-Hanks (NYSE: HHS), ITT Corp. (NYSE: ITT), Johnson Outdoors (Nasdaq: JOUT), Kaydon (NYSE: KDN), Magellan Health (Nasdaq: MGLN), Makita (Nasdaq: MKTAY), Mitsubishi UFJ Financial (NYSE: MTU), Nicor (NYSE: GAS), PNM Resources (NYSE: PNM), PSE&G (NYSE: PEG), Sempra Energy (NYSE: SRE), Snap-on Inc. (NYSE: SNA), The Washington Post (NYSE: WPO), Total (NYSE: TOT), Weyerhaeuser (NYSE: WY) and several others.
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posted by The Greek | 9:10 AM
3 Comments:
I chanced upon to view your blog and found it very interesting. Great ... Keep it up!
I agree completely with the Greek I too am an independent voter but think something has to change. We need action NOW. And I support Obama's plan.
On Health Care Reform;
I congratulate your conversion to rationality and compassion from entitlement and self interest.
Health care is a greed grab in the US. Doctors, insurance companies and lawyers are at the center of the problem. Most MD's, beyond their medical education are narrow minded, self interested pirates who, even if they have good intentions are sucked into the vortex of making money, manipulated and controlled by insurance companies and lawyers.
All one has to do is travel to other countries, mostly third world, to see the truth. While we believe out health care is the best, if you look at most Americans compared to the rest of the world, we Americans are fat slobs, who eat garbage, and are deluded into believing medicine will cure us from what ails us.
We need a wholesale change in attitudes and behavior, and to start with, changing the way health care (nutrition, birthing, consumption of alcohol, carcinogenics, exercise) is seen here in the 'good ole US of A'.
The current recession is just a sympton of all this greed and distorted views of entitlement which constitutes health care, among other things. We have lost our way, if we ever knew it.
I'd say more but it would become a rant.
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