U.S. GDP grew faster than initially thought in the second quarter, at a 1.7% annual pace vs. the 1.5% annual pace first reported. While this was largely expected, futures are showing a bit of a bid this morning ahead of 10 am Pending Home Sales (expected up 1%) and the Fed's Beige Book (due out at 2:00 pm).
Hurricane Isaac touched down in Louisiana last night and while there is flooding and many without power, so far the storm has not reached the level of destruction of Katrina. While it continues to straddle land and the Gulf of Mexico, it is not weakening so the biggest risks seem to be if the storm settles in the area for a while. The projected path looks to be further west than originally thought and flood warnings have been issued in Arkansas.
The S&P looks kind of fragile up here as it has struggled to even come close to the 1426 highs from last week. Rallies continue to get sold and we are near the bottom part of the trend line from this rally. The first line of support comes in at 1400 but any drop below that is not a good sign:
Wed, August 29, 2012
by David Boland