The Bureau of Economic Analysis announced today that the pace of GDP had slowed to 1.6 percent in the second quarter of 2010, compared to the 3.7 percent it had grown the first quarter. This slowing pace of recovery brought about fresh concerns over a double dip recession. Federal Reserve Chairman Ben Bernanke spoke in Jackson Hole, Wyoming today at an annual conference for central bankers. The Christian Science Monitor reported that Bernanke stated that he expected the economy to continue growing, “albeit at a relatively modest pace.” He also seemed confident that the Fed had a, “number of tools and strategies for providing additional stimulus.”
Despite bad news about GDP and housing, U.S. markets rose substantially today with the Dow Jones Industrial Average gaining 164.84 points to 10,150.65, the S&P 500 rising 17.37 points to 1,064.59 and the Nasdaq gaining 34.94 points to 2,153.63.
The Mortgage Bankers Association released a report today that stated the short-term delinquency rate (30 days or fewer) for residential loans on one to four family housing had increased during the second quarter of 2010. Foreclosure rates have decreased.
European markets were up today while Asian markets were mixed.
Stocks in the news: Intel Corp (NASDAQ: INTC), Hewlett-Packard Co (NYSE: HPQ), Dell Inc (NASDAQ: DELL).
