After struggling early on disappointing data the major averages enter the final hour with small gains.
1st quarter Gross Domestic Product or GDP was revised lower missing expectations with a 2% print, on weakness in consumer spending it fell from +4% to +0.9% despite Trumps deficit funded tax cuts. An item most economists figure will keep GDP growth in the 3% range through the end of this decade, not something I would place any bets on, but there you go.
The Saint Louis Fed Financial Stress Index increased fractionally to -1.14 last week, more or less where it has been for about a month. That said trade war fears are increasingly being cited as a potential significant adverse economic threat in a growing number of economic reports that cross my desk.
The Kansas City Fed regional index slipped a point to 28 in June on weakness in new orders, price data fell slightly but remains very high.
Agricultural prices declined 2.2% in April on weakness in commercial vegetable, poultry, egg, meat animal and fruit prices. Tariffs were again cited as a significant negative threat going forward, though we won’t see the effects in this series for a few months yet.
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