Stocks gained after it was reported that US Q2 GDP shrank less than expected and news that the Obama administration isn't suspending its "cash for clunkers" program. In the meantime, a Chicago group said manufacturing activity had picked up in the region in July, and in fact, was its best reading since September. Read and listen to what the experts had to say...
Nasdaq to Hit 2,266 by Sept. 8
When looking at the charts for the Dow and Nasdaq from 1928 until 1955, There were correlations with how the indexes are trading then and now, said independent trader Bill McLaren. He sees the Nasdaq hitting 2,266 in the current rallybefore September 8 and markets reaching a "panic" low in November.
‘Unthinkable’ Pain Ahead for Banks
We still see lots of pain to come—capital deficits and "unthinkable" NPLs (non-performing loans) after "unthinkable" leverage, said Arturo de Frias from Evolution Securities. “Regulators are trying their best to avoid a catastrophe and they succeeded … but we are still left with a few weak banks."
Replenished Inventories to Give GDP BoostAnthony Chan of JPMorgan Private Wealth Management said he expects inventories to be replenished in the second half of the year. “That’s going to give a big boost to the overall real GDP,” said Chan. “We’re also going to get a boost from the exports, which are improving in this situation. As global recovery picks up, exports will start to do a little better."
