Markets See Slowdown or Double Dip?

"Five to Six Years for the economy to fully recover? Give me a break!" That was the cry from one trader on the NYSE floor as our Steve Liesman read the headlines from the FOMC minutes from June 22-23.

That will certainly be one of the main headlines in the paper tomorrow—along with 'Fed Downgrades Economic Forecast', and 'Calls Most Recent Jobs Data Disappointing.'

Still, the markets are pricing in a slowdown, not a double dip. If the market believed a double dip was imminent, the S&P 500 would be trading in the 800 range or lower—not near 1,100.

The "slowdown" school is getting some support from the corporate commentary—we are not seeing an attempt to talk down expectations for the second half. If that trend continues, stocks may stay in a trading range (1,000-1,125 in the S&P) this summer.

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