Stock Futures Drop as Japan GDP Disappoints

The Street ^ | August 12, 2013 | Joe Deaux

[John W]

NEW YORK (TheStreet) - U.S. stock futures were pointing to a much lower opening Monday as indications that Japan's economic growth is slowing offer one less reason for investors to extend this year's rally, already the biggest since 1997.

Japan's gross domestic product grew an annualized 2.6% in the second- quarter, according to a government report, short of 3.6% average forecast of economists in a Bloomberg survey.

"The weaker than expected GDP print puts more pressure on the government's decision over whether to hike sales taxes in April 2014," Jim Reid, a strategist at Deutsche Bank, wrote in a note on Monday morning discussing the outlook for Japan and government policymakers.

U.S. economic data was light for Monday as traders were anticipating the U.S. Treasury to post the monthly budget report for July. Economists polled by Thomson Reuters were expecting a federal budget deficit of $96 billion in July after printing a $116.5 billion surplus in June.

[trebb]

I really wish it would "hit the fan" and let us get to dealing with it - the suspense is killing me since my wife retired and I'm preparing to make the jump.

One day we have "strong indicators from Chine" and it goes up. The next day, "weakness in Chine" causes it to drop. The next day, we have strong jobs indicators", the next day "the jobs indicators are really weaker than expected/reported".

We all know the dollars, that are being used to drive the market up for the big-players to milk it dry, are bogus and worthless. Stop the insanity and let the DOW "adjust/correct" back down to about 8500...

[LibLieSlayer]

1) The government lies about everything.

2) There is no free market left and every indicator used by the US Government to gauge economic activity has been changed to paint a picture of recovery... when in fact:

3) We are now and have been in a depression for years and it will get worse and to the point where lies will no longer cover the truth. Nothing will stop it because nothing is being done to stop it.

[John W]

I’m sure it’s an accepted, perfectly normal phrase in economics or government or budgeting, but, I enjoyed the U. S. Treasury “...printing a $116.5 billion surplus in June.”