US

S&P500  -0.28% (3,215.63);   NASDAQ  -1.33% (10,363.18);   DJIA  -0.76% (26,469.89)

This week’s reports:

  • Q2 2020 GDP Annualized (prelim.) fell 32.9%, better than the expected 34.1% contraction, versus Q1’s -5%. Q2’s economic decline was the biggest single-quarter decline in GDP since 1947, when the government began tracking the figure using modern methods. Consumption spending was the single biggest factor in the drop as the economy was in lockdown and unemployment surged. The US GDP plunged 9.5% y/y in the second quarter versus Q1’s +0.3% y/y. Quarter-on-quarter, Q2’s fall was also 9.5%. Economists expect the third quarter to show growth, though the summer rise in infections is likely to temper gains. The Conference Board expects the US economy to shrink 7% in 2020.
  • June’s Personal Income fell 1.1% from May’s -4.4%. Personal Spending rose 5.6% from May’s +8.5%.
  • July’s Michigan Consumer Sentiment Index fell to 72.5 from June’s 73.2.
  • July’s CB Consumer Confidence Index dropped to a reading of 92.6 from June’s 98.3 amid a flare-up in Covid-19 infections across the country. Economists had forecast the fall to 94.5.
  • May’s S&P/Case-Shiller Home Price Indices rose 3.7% y/y versus April’s +3.9%.
  • June’s Pending Home Sales rose 16.6% from May’s surge of +44.3%.
  • July’s Chicago PMI jumped to 51.9, more than the expected reading of 43.9, from June’s 36.6.
  • June’s Durable Goods Orders rose 7.3% from May’s +15.1%. Durable Goods Orders ex Transportation rose 3.3% from May’s +3.7%.
  • July’s Dallas Fed Manufacturing Business Index rose to -3 from June’s reading of -6.1.
  • July’s Richmond Fed Manufacturing Index jumped to 10 from June’s reading of 0.
  • June’s Wholesale Inventories (prelim.) fell 2% from May’s -1.2%.
  • Initial Jobless Claims for the week ending July 25th rose by 12K to 1.434M, versus the expected increase to 1.450K. Continuing Jobless Claims for the week ending July 18th rose by 867K to 17.018M, versus the expectations of 16.2M continuing claims.