Here we are again, again.
We've been watching that 2,440 line on the S&P all month long for signs of an upside breakout and, while the Nasdaq is still making record highs, the much more reliable S&P 500 seems reluctant to go higher. Earnings season is just around the corner but a week delayed because of the Holiday, with Big Banks (C, JPM, WFC) reporting on the 14th and then comes the flood.
It's hard to imagine how the S&P can go higher without solid evidence it deserves to have a p/e greater than 25 (now 24.6) to cross that 2,500 mark so all eyes will be on the 500 and how much they are actually dropping to the bottom line this quarter.
Unfortuately, that may be a bit of a snag as the Atlanta Fed has once again lowered their GDPNow Forecast to 2.9%, down 30% from the original 4.2% estimate that kicked off the 2nd quarter. Yesterday's Durable Goods Report for May was a horrific -1.1% and April's (the first month of Q2) report was revised down from terrible (-0.7%) to horrific (-0.9%) as well.
That caused the forecasts for contributions of real Nonresidential Equipment and Inventory Investment to second-quarter real GDP growth to decline from 0.15% and 0.76% to 0.12% and 0.69%, respectively, which knocked the overall forecast futher down the line.
Keep in mind Trump's budget is based on 4% GDP Growth and failing to achieve that adds Trillions of Dollars to our deficit yet they will ignore this FACT and cut the taxes anyway and your children and your grandchildren will suffer for it for the rest of their lives – enjoy.
Of course, those lives are much more likely to be brief – especially if they are in the bottom 90% as the newest version of the TrumpDon'tCare lack of Health Bill cuts 22M people off from insurance and will skyrocket costs for people who remain covered – including seniors as the famous "donut hole" in coverage is back with a vengance under the new plan. 4,000 people PER MONTH will DIE due to lack of coverage - that's what your Senators are voting for – a 9/11 per month for America's…