The Commerce Department reported this morning the nation’s economy -- as measured by the GDP, gross domestic product -- rose by 2.4 percent in the second quarter. That was pretty much in line with expectations. One of the more interesting items in the report was a final revision to first-quarter growth, which was finally locked in at 3.7 percent. The GDP has now grown for four consecutive quarters, however, with little to no improvement in the U.S. job market.
******
We'll know a lot more about the job market by the end of next week. Several key employment reports will be released, capped off by the July numbers from the Labor Department. It will report on the nation's unemployment rate as well as U.S. payrolls. The world has been waiting for the real blow-out number showing significant job growth in the range of 400,000 or more jobs, but the number has been elusive, at best.
******
Stocks initially had a negative reaction to the news, dropping triple-digits in early trading. However, prices have recovered and are trending slightly lower in quiet trading. No matter how the day ends, July will go into the books as one of the best quarters on Wall Street in a long time. The Dow Industrials are up more than 7 percent for the month.
******
The folks from Wal-mart were on hand last night to ring the closing bell at the NYSE. They were celebrating the opening of store number 8,500. The retail giant now has more stores outside of the United States than we do here. It was fun to watch all the executives on the podium break into the "Walmart cheer" in the seconds before the closing bell. Every day, in every store and even at corporate headquarters, workers gather to do the cheer similar to what is used at high school football games across the country. It goes, "Give me a W..." then continues to spell out Wal-mart and ends with "Who's number one? The Customer! Always!" They used to do the cheer right before stores would open each day, but with many stores now open 24 hours a day, they usually gather around six in the morning and unaware customers can be caught off guard. It scared the heck out of me the first time I was in a store and it happened.
******
The Alliance for Savings and Investment sent a letter to President Obama on Thursday encouraging him to continue the current maximum tax rate of 15 percent on capital gains and dividends. The favored tax treatment is scheduled to expire at the end of this year and return to higher levels. In the letter, the group said it was heartened by "the recent statements by Treasury Secretary Tim Geithner indicating that keeping the dividends and capital gains taxes low -- for all income levels -- is critical to encouraging long-term economic growth and job creation and protecting millions of small businesses and American families who are struggling to save and invest."
******
Today we celebrate the birth of the man who changed the face of American industry. Henry Ford was born in Dearborn, Mich., in 1863. He built his first auto in 1896 and introduced the Model T in 1908. To meet demand, Ford developed the assembly line, which cut the time it took to build a car from 12 hours to 90 minutes. The cars sold for $300 and came in black. Ford was once asked if the cars were ever going to be painted in another color and he responded, "You can get a Model T in any color you want as long as it is black."
Print
E-Mail
