Several potential market moving economic data points will be released this week. Durable goods orders will be released Tuesday morning, jobless claims Thursday as well as the second revision of first quarter GDP. The GDP announcement will be watched closely as Thursday's report will be the first revision of the advanced reading reported in April when Q1 GDP was reported at .1%. The consensus estimate is for GDP to be revised down to a negative .5%. One important measure used by the National Bureau of Economic Research (NBER) that goes into determining whether the economy is in a recession is two consecutive quarters of negative GDP growth. If the Q1 revision is negative, then some will say the economy is one half the way towards a recession. The GDP report will certainly provide fodder for the financial media. Importantly, other factors are incorporated into the recession call. The Department of Commerce's Bureau of Economic Analysis notes employment, personal income, and industrial production are important factors also.
Several of the article links in this week's magazine discuss the positives associated with the current equity market. Conversely, several of the links focus on the negative aspects of the current market environment with the sell off in small caps and the investor rotation out of the momentum names. My posting has been limited the past couple of weeks as I was fulfilling my civic duty of serving as a juror on a trial in my county.
Below is the link to this week's magazine.