Stocks flat as GDP growth falls below estimates

[dkf]

Source: AP

NEW YORK (AP) — Stocks are essentially flat in early trading after a report said the U.S. economy did not grow as quickly during the summer as analysts predicted.

The Commerce Department said the country's gross domestic product rose 2.6 percent between July and September, a small gain from its earlier estimate of 2.5 percent. Analysts hoped for a gain of 2.8 percent.

Economic reports will likely remain a focus of Wall Street. The National Association of Realtors will release its report on November sales of previously occupied homes later on Wednesday morning.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5jW2zr2EsZkBgRN64h9V1XLFM0-0Q?docId=77d540b8e7fb4994bbdfa6356bd65952

[rfranklin]

1. No jobs means no growth...we need a dramatic change...

which I thought we would get with President Obama but he is heeding the advice of bankers who can think no further than bonus season. The "free market" is a freakin' failure for 99% of the populace.

[bhikkhu]

2. 2.6 is a high growth rate

I think economists need to get used to the idea of lower growth rates than the hyperactive economies of energy boom days, and plan accordingly. As the planet is unquestionably finite (and we are in the midst of a historic extinction event already, based upon the huge share we take), zero growth should be the goal of sane minds.

[DallasNE]

3. Two Points

The headline is highly misleading. GDP actually beat the earlier forecast of 2.5% growth. It did come in slightly below some analysts expectations. It depends on whether you think an "estimate" is a forecast or analysts expectations. AP pulls this crap all of the time.

Second, this is only a headline number. No details are provided. My guess is that a slowing of inventory buildup is the prime cause for the miss on the analysts expectations. They were expecting a greater buildup in inventory than what happened. If that is indeed the case it means some catch-up in inventory buildup will drive future quarters GDP growth higher.

[Commie Pinko Dirtbag]

4. Clearly, the solution is more tax cuts.

:sarcasm: