Today's U.S. reports
Today's U.S. reports were slightly disappointing, with an unrevised 3.1% Q1 GDP growth rate despite an assumed boost from annual revisions for retail sales, thanks to a big downward revision for service consumption that offset stronger goods sector figures. Analysts saw a remarkably large boost for intellectual property investment to growth of 12.0% from 7.2%, and other small revisions that tracked assumptions of boosts for both exports and imports that lowered net exports modestly, hikes for nonresidential and public construction, and a small downward inventory bump. Analysts left our Q2 GDP estimate at 1.6%. The initial claims report revealed a 10k claims rise to 227k in the fourth week of June, leaving a lofty start for claims as analysts enter the auto retooling period of heightened claims volatility. The claims up-tilt trimmed our June nonfarm payroll estimate to 160k from 170k. The weekly Bloomberg consumer comfort index bucked the bad news earlier in the morning with a rise to a 63.6 new cycle-high from 61.8, versus a 60.5 average in May.