Let's hope we see a drop of .25 cents per gallon at the pump in the next week, but I'm not holding my breath! Currently the gasoline futures are $1.95 vs $2.20 last Friday. As goes the DOW so goes Oil, Gas, and Stocks...
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Exactly they are revising estimates of growth for the second quarter and they are even lower. The economy is almost completely stagnant.
WASHINGTON (MarketWatch) -- Growth in the U.S. economy from April through June was probably much softer than first estimated by the government, private economists said Wednesday after updated trade figures for June were published showing higher imports.
"The markets might face their biggest downside economic surprise of this recent growth slowdown yet in the form of a downward second quarter gross domestic product revision, which today's U.S. trade deficit figures suggest will be a whopper," wrote analysts at Action Economics.
http://www.marketwatch.com/sto...-gdp-seen-2010-08-11
WASHINGTON (MarketWatch) -- Growth in the U.S. economy from April through June was probably much softer than first estimated by the government, private economists said Wednesday after updated trade figures for June were published showing higher imports.
"The markets might face their biggest downside economic surprise of this recent growth slowdown yet in the form of a downward second quarter gross domestic product revision, which today's U.S. trade deficit figures suggest will be a whopper," wrote analysts at Action Economics.
http://www.marketwatch.com/sto...-gdp-seen-2010-08-11
Here's another reason for the lower futures price:
Considering that the research is from the Left Coast, the report could be optimistic.
http://abcnews.go.com/Business/wireStory?id=11359445quote:Concern has risen in recent months that the United States might be headed for a 'double-dip' recession as measures of consumer spending and confidence have dropped and private company hiring has fallen short of expectations.
The soft economic data will be top of mind tomorrow when members of the Fed's monetary policy-setting committee meet. Recent comments from Fed officials signal strong disagreement over whether the Fed -- the U.S. central bank -- should move to offer further support to the economy than it already has.
The researchers -- Travis Berge, a graduate student at the University of California, Davis, and Oscar Jorda, a professor there as well as a visiting scholar at the San Francisco Fed -- used leading economic indicators to try to predict the possibility of a renewed economic downturn.
The experiment yielded vastly different results, depending on which indicators were used. But overall, they said, the numbers "indicate that the macroeconomic outlook is likely to deteriorate progressively starting sometime next summer."
Considering that the research is from the Left Coast, the report could be optimistic.