Markets Lifeless as Traders Await Today’s GDP Reading

Markets are trading or expected to open flat this morning with traders expressing nervousness over the pending 2nd Quarter release of our Gross Domestic Product (GDP). Despite all the optimism having been thrown about in the wake of recent economic data; traders will face the stark reality of what it all means when the GDP gets released this morning. GDP is the sum total of all goods and services produced in our country. In other words it’s the bottom line result of all our economic data.

The current estimate calls for a preliminary 2nd Quarter reading of -1.5%. This is an unfavorable comparison to the first quarter where our economic contraction was only 1%. If correct it will have traders scratching their heads.

Today’s other report of significance will be this week’s Initial Jobless Claims. Wall Street expects to see a number of 565,000 versus last week’s 576,000. Core PCE Inflation is expected to have remained unchanged at 2%.

As for the markets; Silver remains unchanged at $14.25. Gold is $2.00 higher at $947.00. Palladium is $283.00 up $1.00. Platinum is flat at $1235.00.

Our day to day barometers are mixed and quiet. Crude is 52 cents per barrel lower at 70.92. The Euro is 28/100ths of U.S. cent higher at $1.4258. Over in the equities market the Dow finished the Wednesday trading day with a 4 point gain. This morning the index is being called to open 2 points lower.

On the geo-political front it appears the predicted public uproar surrounding the planned visit to New Jersey by Libya’s Moammar Gadhafi has already started according to a front page article in today’s Wall Street Journal. It’s sort of reminiscent of Iran’s Ahmadinejad visiting New York City.

Federal Trade Commission Bans Market Manipulative Trading in Oil

After a brief flurry at higher levels the metals ended the day marginally lower. Traders pulled in their horns as the New York trading session drew to a close choosing to step aside until tomorrow’s employment data gets released.

Silver edged down 7 cents at $14.62. Gold slipped $3.00 to close at $961.00. Palladium fell $7.00 to $270.00. Platinum shed $35.00 to end the day at $1255.00. Trading was active.

Both of our day to day barometer’s are also currently trading to the downside. The Euro is changing hands at $1.4350 down 78/100ths of a cent versus the Dollar. Crude Oil is presently 18 cents lower at $71.79. Oil was down almost $2.00 at the session lows after the Federal Trade Commission issued its final ruling banning market manipulative trading practices in oil. We are not exactly sure what that entails; but traders were not happy. Adding insult to injury; the National Oceanic and Atmospheric Administration (NOAA) lowered its forecast for the number expected Atlantic hurricanes. Crude has since recovered from the session lows.

Over in the stock market the Dow began the day on a higher note after the Weekly Initial Jobless Claims clocked in at better than expected levels. First time claims for unemployment came in at 550,000; better than the estimate of 580,000. The bullishness was short lived when traders began worrying about tomorrow’s real jobs report. Just another example of traders pulling in the horns.

As for tomorrow the latest estimate for Friday’s non Farm Payrolls calls for a loss of 328,000 jobs. If correct it would represent a big improvement over June’s loss of 467,000 and serve to reignite positive economic sentiment. The estimates will change by tomorrow.