Q2 GDP Hopes Fade As Wholesale Inventories Miss By Most In 2014

Tyler Durden's picture

Another day, another uncomfortable fact about Q2 not being the epic bounce back that so many had promised. Wholesale Inventories rose only 0.5% in May - following April's +1.1%. This is the slowest growth in 2014 and biggest miss of expectations since Dec 2013. Wholesale sales also fel back, missing expectations at +0.7%, to the slowest since Feb as April hopes fade. Cue, Q2 GDP downgrades in 3...2...1...



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Aknownymouse's picture

It is the damn spring. Ok? Noise! NOISE I SAID!

Clueless Economist's picture

Not according to CNBS:

Wholesale inventories rise 0.5% in May, point to rebound in Q2 GDP |

6 Mins Ago

TeamDepends's picture

No problem.  Just lace up your Nike Obama Rio Grande's and walk to another country.

DeadFred's picture

The reason Q1 was reported as low as it was was so Q2 can be reported as a recovery.  Back to back GDPs of-1.5% and -0.5% is a recession. while -2.9% and +0.9 is a rebound.

666's picture

Lower wholesale inventories makes sense to me because why would companies stock up when no one has any money left to buy anything.

Just another reason to BTFATH!

Obchelli's picture

And market rallies right out of the gate just do not look back, do not worry and BTFATH

Wait What's picture

funny how marketwatch's most popular stories are led by a link to 'US stocks open with sharp losses' and Stanley Fischer's ugly mug.

did he just give another 'I'm buying AAPL' signal?

... maybe he's just cursed.


Edit: looks like we've got a serial downvoter running around ZH today. someone's not happy with today's developments. levered a little too long... or caught pants down with a billyclub up his butt.

Hydesrevenge's picture

HAHAHAHA.... you said billyclub in his butt! Ofcourse that is assuming the chronic down voter is a he which would make me a sexist.

CrashisOptimistic's picture

A rebound in Q2 is likely.

1) Oil drilling in the Bakken resumed after cold weather shut it down, as it does each winter.  The difference this year is oil drilling and mining is a growing % of GDP.

2) You can rebound from -2.9% all the way up to -2.5%.  Is that a celebration?

Tsar Pointless's picture

Fuck yeah, it is. I'd say it would get us to Dow 20,000 in a flash.

Dr. Engali's picture

Wow! Who could have seen this coming? Beware of stampeding penguins. 

kenny500c's picture

A rebound could be any number better than 1Q's  -2.9%.

Baby Eating Dingo22's picture

With all the buybacks, maybe they need to count stocks as inventory?



agstacks's picture

"Wholesale inventories rise 0.5% in May, point to rebound in Q2 GDP"


.5% in May, point to rebound in Q2 GDP

Tulpa's picture

When life gives you lemons...

knukles's picture

You pucker the fuck up and take it like a man

JustObserving's picture

Goldman has Q2 GDP at 3.3% and chance of Brazil winning World Cup at 48.5%.

Kaiser Sousa's picture

"A bank executive from London shot his wife dead before turning the gun on himself. Julian Knott, 45, an executive director for J P Morgan, shot 47-year-old Alita repeatedly, police said.

The father-of-three was found dead alongside her in their home in Jefferson Township, New Jersey, on Sunday. He had worked in the City for almost 20 years before moving to the US in December 2012. In a tribute posted online soon after the bodies were found, their daughter Kayleigh said that the couple were: “now stress-free”.

The university student wrote on her Instagram page: “Although I am heartbroken that they will never see me graduate college ... get married or to be grandparents for my children, I can still have inner peace knowing that they are now stress-free in a much better place.”


Kaiser Sousa's picture

bankers r sociopaths...
as such they r capable of anything.

Dr. Engali's picture

"Although I am heartbroken that they will never see me graduate college ... get married or to be grandparents for my children, I can still have inner peace knowing that they are now stress-free in a much better place.”



That's fucking odd.

PeeramidIdeologies's picture

That's what I was thinking. The parents were obviously going though some tough times... But that statement is something else.

Kaiser Sousa's picture

sociopaths breed sociopaths...
see the Clintons for reference.

TrulyStupid's picture

Or the Bushes, Cheneys, etc..

Save_America1st's picture

@Kaiser Sousa

BINGO!  Don't forget obama...the biggest sociopath of them all.  I can't wait to see what kind of warped pscho demons his supposed spawn turn into when they get older. 


TrulyStupid's picture

Time was you used to pay the ferryman over the river Styx a piece of silver for transport to Elysium...now all it takes is to empty the magazine of a small calibre handgun...payment for two.

- disclaimer: Long Colt, Ruger et al..  short sub high level banksters and immediate family.

mademesmile's picture

Sounds like a very selfish thing to say. My folks are dead but they sure will miss me.

emersonreturn's picture

she's a kid trying to process the death of both parents, daddying shot mummy.  while it sounds like she sensed something, it's not obvious she knew the reasons for her parents' stress.  she's doing what she can to make sense of it.  there will be a great many bankers leaving their families reeling.   and the world.  we only have to look to gaza to glimpse what comes. 

knukles's picture

With that comment sounds to me like she's become a person of interest

Government needs you to pay taxes's picture

What would it take for Congress-critters to rinse, repeat?

Ness.'s picture

USD/JPY>GDP... the new normal.  BTFD and sleep well knowing that fundamentals do not matter anymore.

Kaiser Sousa's picture

watching the dow attempt to erase the losses on 16 million share volume...
enjoy the show.


Tsar Pointless's picture

Yep. Our - for lack of a better word - markets will be a lovely shade of green by day's end.

Cognitive Dissonance's picture

Missed it by >. that. <. much......again.

yogibear's picture

In the meantime Obama and his staff has created  diversionary chaos with the flood of illegals. 

knukles's picture

And a redecoration of the bowling alley into shades of taupe, mauve, purple and brass with renewable materials so the fucking thing is green, to re-distract the Progressives from the Cloward-Piven immigration thingamajig

Hey Knuks, don't forget all the sparkling shit hanging all over and the flashing disco balls

Tsar Pointless's picture

EconoPray tells us that everything is beautiful with this report.

Inventories in the wholesale rose 0.5 percent in May, a solid and balanced rise in line with a 0.7 percent gain in sales that leaves the stocks-to-sales ratio unchanged at a lean 1.18.

There were large inventory gains for lumber, metals, machinery, and drugs, all matched by large gains in sales. Inventories of autos also rose sharply but less so for sales. But heavy wholesale inventory of autos is a likely plus given the building strength in retail sales of autos.

Inventory growth is expected to be a positive for second-quarter GDP as businesses restock to keep up with demand. Next inventory data on the Econoday calendar will be Tuesday with the business inventories report.

Dr. Engali's picture

Recovery is just around the corner..... corner..... corner.....

Tsar Pointless's picture

That's only three corners, meaning we're in a triangle. Likely the Bermuda Triangle. We're going to have a marvelous time trying to get out of it, I think.

Tsar Pointless's picture

I see our resident serial down-voter is present.

Jon Corzine, is that you? Or is it Fred Phelps, from the great beyond?

I am intrigued...

GreaterFool1965's picture

Remember - in the new normal, down votes are up votes and up votes are up votes!  Don't forget to vote!

moonman's picture

unless we started on a corner, lol

orangegeek's picture

Interesting comment - you should go post it now on TMZ or people.com


good work

PeeramidIdeologies's picture

What a larph!! Honestly, how much longer are these burnt toast pencil pushers going to get paid to stare at their computers, with all their fancy maths and be wrong?!

Get outside and walk around your block once a week. You will learn more about economic activity in a month then they taught you in 4 years of university. And you might actually be right once and a while.