U.S. GDP in the second quarter of 2020 tanked, but we knew that already. The number printed actually beat estimates by a few percentage points. That’s what happens when you shut down a $20 trillion economy overnight. The corrupt media talking heads are crowing anyway over their success in harming President Trump prior to the November presidential election. Sober analysts are reminding us how things that collapse fast, recover fast (V-shaped recovery).
Other economic data showed a sputtering economy in the face of the continued Dem lockdowns and the infamous media-induced ‘second wave’ fear porn.
Many media pundits are spewing the narrative that ‘half the restaurants in the U.S. have closed permanently’, which of course ignores the fact that many will re-open under a different name, shedding legacy debt and starting anew. Personal consumption and jobless claims reflect this current snapshot of reality, but is a lagging indicator.
In other market news, President Donald Trump stirred the ‘wall of worry pot’ pot this morning with his tweet suggesting we delay the elections until it is safe from Chinese coronavirus…master level trolling to the corrupt media. They still underestimate him.
Markets are down considerably on the news from multiple fronts.
Core Personal Consumption Expenditures printed at -1.1% vs 1.0% consensus estimate.
Continuing Jobless Claims (Jul 17) printed at 17.018M vs 16.2M estimate.
Gross Domestic Product Price Index (Q2) PREL printed at -2.1% vs 1.1% estimate.
Personal Consumption Expenditure Prices (QoQ) (Q2) PREL printed at -1.9% vs 1.6% estimate.
Initial Jobless Claims (Jul 24) printed at 1434k vs 1450k estimate.
Initial Jobless Claims 4-week average (Jul 24) printed at 1368.5k.
Gross Domestic Product Annualized (Q2) PREL printed at -32.9% vs -34.1% estimate.