10:30AM: Major indices continue to hold their own but are showing little reaction to the latest economic report... At the top of the hour, June wholesale inventories rose 0.7% (consensus +0.4%), led by a 3.1% increase in auto inventories... While the inventory data don't usually garner much attention, they have gained some substance of late after inventory reductions shaved 2.3% off the advance read on Q2 GDP a week and a half ago... It is worth noting that strong inventory trends could lead to real GDP growth of 5% or more in for Q3...
We already know GDP is so contrived and manipulated to be meaningless.The things that would lower it left out, the things that would raise it embellished.
A RISE in inventories a good thing? maybe so, if they are bought! But it is allpart of the CONSUMER ECONOMY so out of balance and whack with a stable sustainable one.
Duratek
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