A Macro Data Extravaganza
Today we saw a flood of alphabet soup data, with news on the Gross Domestic Product (GDP), the ADP report on jobs and the Federal Open Market Committee (FOMC) meeting. Let’s take each one as a separate bite here, and see what the implications are for the markets.
First, today we saw the continuation of lackluster economic growth, as the nation’s GDP expanded at an annualized rate of 1.7% from April to June. While that figure did best Wall Street estimates for a GDP increase of just 0.9%, I don’t think sub-2% growth is anything to celebrate. Moreover, we got a downward revision in the first quarter GDP growth reading to just 1.1%.
Now, I am happy that the economy is growing, albeit slightly, but this rather tepid growth rate certainly doesn’t justify the Dow trading near all-time highs.
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