Stock Market Analysis July 29th 2011 CNBC Stock Market Squawk Box (Q2 GDP)

7/29/2011 – CNBC Stock Market Squawk Box (Q2 GDP). It’s official but it’s worse than earlier believed. The soft patch continued into the second quarter as GDP growth for posted at a very sluggish 1.3 percent annualized rise, following a downwardly revised increase of 0.4 percent in the first quarter. Analysts had forecast a 1.9 percent boost for the latest quarter and the first quarter was previously estimated at 1.9 percent. Today’s report includes standard annual revisions going back three years for most series. Demand numbers improved but barely. Final sales of domestic product improved to up an annualized 1.1 percent from 0.0 percent (unchanged) in the first quarter (previously 0.6 percent). Final sales to domestic purchasers also nudged up, rising 0.5 percent from 0.4 percent in the prior period (previously 0.4 percent). Most of the anemia in the second quarter came from the consumer sector which came to a screeching halt with a 0.1 annualized percent uptick in the first quarter, following a 2.1 percent rise the prior quarter. Government purchases declined modestly while gains were seen in net exports, business investment in structures and equipment, and even residential investment. Inventories nudged up. Economy-wide inflation according to the GDP price index showed only incremental change in momentum, rising 2.3 percent, following an increase of 2.5 percent in the first quarter. Analysts expected a 2.0 percent gain. The annual revisions did change economic history …
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