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Gross Domestic Product slowest in 8 years

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This morning's GDP number showed that the U.S. economy grew just 0.7% in the second quarter and marks the slowest growth in eight years. Many economists were expecting growth of 0.8%. Consumer spending continued to show some strength, increasing at a 2.1% rate, but business investment slumped 13.6%, the biggest drop since 1982. Business inventories fell $26.9 billion.

This morning's numbers have the bond pits humming and treasuries are bid higher with bond YIELDS falling. I'm watching the 10- year YIELD right now and it's YIELD is right at the 5.125% level. This is just above the 5.117% level that gave me an upside alert on Wednesday that did seem to indicate enough selling to have stocks finding a bid that day.

Today's numbers seems to have many economists feeling these numbers still give the Fed reason to continue cutting rates.

Stock futures mixed

Currently we're seeing S&P 500 futures trade higher by 2 points, NASDAQ futures are up 16 points, but Dow futures are lower by 30 points. Fair value for the S&P 500 today is $4.56. HL Camp & Company has their computer buy programs set at $6.32 and their computer sell programs set at $3.32. Fair value for the NASDAQ- 100 today is $10.00.

Jeff Bailey
Senior Market Technician

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