1. GDP no balm for slowing growth
The economy’s ultraslow growth during the opening months of 2007 sparked fears of recession, falling to a measly annual rate of 0.6 percent. Expect Friday’s report of second-quarter gross domestic product to ratchet higher to a robust rate of 3.5 percent. Economist Robert Dederick said, “The consumer took a siesta over the last three months, but exports, capital spending and inventories all contributed.” Even so, Dederick, of RGD Economics, remains concerned: “With housing quite weak, spending has fallen to a very slow pace. Look for a return to sluggish growth in the months ahead.”
2. McDonald’s anomaly
It’s a double-time pace for second-quarter corporate earnings, with dozens of companies reporting daily. A few major disappointments have made investors take notice. On Tuesday, McDonald’s Corp. is expected to report its second quarterly loss in a half-century.
3. Buck taking beating
The rocky road for the dollar against foreign currencies could encounter a deep rut any day now, as the euro stands to cost more than $1.40. Last week, the buck fell to a record low against the euro, around $1.38, It also hit a 26-year low against the British pound.
4. Housing’s double dip
June existing-home resales Wednesday and the month’s new-home sales Thursday, will seek signs of recovery. Chicago economist Carl Tannenbaum is telling clients, “Housing seems to be going through a ‘double dip.’ Supply, price and demand seem to be getting into better balance, but the inventory of existing homes for sale has increased sharply.” His bottom line: “Sellers are facing steep price concessions.”
5. Gasoline’s wild ride
More Top Picks Gps Boat
The wild ups and downs in gasoline prices have continued to unnerve motorists. In the Chicago area, a gallon of fuel has remained above $3.20 at many locations, easing back from a level of $3.65 before Memorial Day. One favorable indicator: Wholesale prices have slipped.
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