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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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Thu, 07/10/2014 - 10:08 | 4943064 Aknownymouse
Aknownymouse's picture

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

Thu, 07/10/2014 - 10:09 | 4943066 Clueless Economist
Clueless Economist's picture

Not according to CNBS:

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

6 Mins Ago

Thu, 07/10/2014 - 10:16 | 4943102 TeamDepends
TeamDepends's picture

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

Thu, 07/10/2014 - 10:17 | 4943104 DeadFred
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.

Thu, 07/10/2014 - 10:24 | 4943133 666
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!

Thu, 07/10/2014 - 10:41 | 4943187 Obchelli
Obchelli's picture

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

Thu, 07/10/2014 - 10:53 | 4943213 Wait What
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.

Thu, 07/10/2014 - 11:55 | 4943561 Hydesrevenge
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.

Thu, 07/10/2014 - 11:04 | 4943303 CrashisOptimistic
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?

Thu, 07/10/2014 - 11:10 | 4943332 Tsar Pointless
Tsar Pointless's picture

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

Thu, 07/10/2014 - 10:12 | 4943068 Dr. Engali
Dr. Engali's picture

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

Thu, 07/10/2014 - 11:08 | 4943326 ShrNfr
ShrNfr's picture

Just go with the floe.

Thu, 07/10/2014 - 11:37 | 4943485 knukles
knukles's picture

Careful, Doc, the penguin is the Narrator's power animal

Thu, 07/10/2014 - 10:10 | 4943071 buzzsaw99
buzzsaw99's picture

bullish

Thu, 07/10/2014 - 10:11 | 4943074 kenny500c
kenny500c's picture

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

Thu, 07/10/2014 - 10:11 | 4943076 Baby Eating Dingo22
Baby Eating Dingo22's picture

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

 

 

Thu, 07/10/2014 - 10:12 | 4943077 agstacks
agstacks's picture

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

-CNBC

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

Thu, 07/10/2014 - 10:12 | 4943080 TabakLover
TabakLover's picture

Classico.

Thu, 07/10/2014 - 10:16 | 4943097 Tulpa
Tulpa's picture

When life gives you lemons...

Thu, 07/10/2014 - 11:38 | 4943488 knukles
knukles's picture

You pucker the fuck up and take it like a man

Thu, 07/10/2014 - 10:14 | 4943090 JustObserving
JustObserving's picture

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

Thu, 07/10/2014 - 10:15 | 4943091 Kaiser Sousa
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.”

http://www.standard.co.uk/news/london/london-bank-executive-who-moved-to...

Thu, 07/10/2014 - 10:16 | 4943098 PeeramidIdeologies
PeeramidIdeologies's picture

That's fuked up.

Thu, 07/10/2014 - 10:18 | 4943113 Kaiser Sousa
Kaiser Sousa's picture

bankers r sociopaths...
as such they r capable of anything.
DEATH TO THE MONEYCHANGERS.

Thu, 07/10/2014 - 10:20 | 4943117 Dr. Engali
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.

Thu, 07/10/2014 - 10:25 | 4943136 PeeramidIdeologies
PeeramidIdeologies's picture

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

Thu, 07/10/2014 - 10:28 | 4943150 Kaiser Sousa
Kaiser Sousa's picture

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

Thu, 07/10/2014 - 10:33 | 4943166 TrulyStupid
TrulyStupid's picture

Or the Bushes, Cheneys, etc..

Thu, 07/10/2014 - 11:07 | 4943324 Save_America1st
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. 

 

Thu, 07/10/2014 - 10:30 | 4943154 TrulyStupid
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.

Thu, 07/10/2014 - 10:49 | 4943227 mademesmile
mademesmile's picture

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

Thu, 07/10/2014 - 10:58 | 4943272 emersonreturn
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. 

Thu, 07/10/2014 - 11:40 | 4943497 knukles
knukles's picture

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

Thu, 07/10/2014 - 12:50 | 4943866 mt paul
mt paul's picture

very narcissus ....

Thu, 07/10/2014 - 10:20 | 4943119 Government need...
Government needs you to pay taxes's picture

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

Thu, 07/10/2014 - 10:14 | 4943092 Ness.
Ness.'s picture

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

Thu, 07/10/2014 - 10:18 | 4943110 Kaiser Sousa
Kaiser Sousa's picture

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

http://www.marketwatch.com/investing/index/DJIA

Thu, 07/10/2014 - 10:22 | 4943124 Tsar Pointless
Tsar Pointless's picture

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

Thu, 07/10/2014 - 10:18 | 4943112 Cognitive Dissonance
Cognitive Dissonance's picture

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

Thu, 07/10/2014 - 10:19 | 4943115 yogibear
yogibear's picture

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

Thu, 07/10/2014 - 11:43 | 4943506 knukles
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

Thu, 07/10/2014 - 10:20 | 4943116 Tsar Pointless
Tsar Pointless's picture

EconoPray tells us that everything is beautiful with this report.

Highlights
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.

Thu, 07/10/2014 - 10:21 | 4943122 Dr. Engali
Dr. Engali's picture

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

Thu, 07/10/2014 - 10:22 | 4943127 Tsar Pointless
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.

Thu, 07/10/2014 - 10:30 | 4943157 Tsar Pointless
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...

Thu, 07/10/2014 - 10:55 | 4943257 GreaterFool1965
GreaterFool1965's picture

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

Thu, 07/10/2014 - 13:58 | 4944196 moonman
moonman's picture

unless we started on a corner, lol

Thu, 07/10/2014 - 10:46 | 4943212 orangegeek
orangegeek's picture

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

 

good work

Thu, 07/10/2014 - 10:22 | 4943126 PeeramidIdeologies
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.

Thu, 07/10/2014 - 10:24 | 4943131 MountainsRoam
MountainsRoam's picture

Here is Yahoo Finance headline:

 

U.S. wholesale inventories rise, point to rebound in second-quarter GDP
Thu, 07/10/2014 - 10:46 | 4943204 orangegeek
orangegeek's picture

Funny - went to Reuters site - they share the same vomit - and posted a comment - it was accepted, but had to be reviewed first

 

Nice MSM - pile of fucking shit

 

Q2GDP will be negative too.  But MSM and those useless economists (that includes you Krugman) will still get paid.

Thu, 07/10/2014 - 10:30 | 4943158 orangegeek
orangegeek's picture

Choke on this yellen - got the message??  Get your fat ass out of the markets and out of the way.

Thu, 07/10/2014 - 10:48 | 4943206 HamRove
HamRove's picture

.......

Thu, 07/10/2014 - 10:50 | 4943233 starman
starman's picture

So who's the "red arrow" troll this morning? Some one didn't get laid, got their pension cut , pink slipped or laid off?

Thu, 07/10/2014 - 11:04 | 4943304 Kaiser Sousa
Kaiser Sousa's picture

yeah that asshole never misses a post...
he's just hoping to annoy...
what else u gonna do when you got no life and nothing of value to add...

Thu, 07/10/2014 - 11:13 | 4943351 Tsar Pointless
Tsar Pointless's picture

Become an investment banker or economist?

Thu, 07/10/2014 - 11:22 | 4943402 Kaiser Sousa
Kaiser Sousa's picture

i downed u just to c if he passes u by...
cheers

Thu, 07/10/2014 - 14:13 | 4944268 Stalkedbyhackers01
Stalkedbyhackers01's picture

I never down voted anyone in my life. Yes I am that guy the one who everyone is trying to destroy and ruin.

Thu, 07/10/2014 - 10:59 | 4943277 Kaiser Sousa
Kaiser Sousa's picture

only 100 hundred more points to go b4 the Dow is green...recovery right on schedule in tandem with the close in London...
and Silver??? seems $21.50 is the new $20line in the sand...

http://www.kitco.com/charts/livesilver.html

Thu, 07/10/2014 - 11:01 | 4943286 Smegley Wanxalot
Smegley Wanxalot's picture

Those 8 ft deep snow blizzards and the sub-zero temperatures gripping the bulk of the USA in May are just killing the economy.

Thu, 07/10/2014 - 11:08 | 4943323 BobTheSlob
BobTheSlob's picture

Not to worry. Have any of you ZHers asked your neighbor about that negative GDP from last quarter? I asked one of mine 2 weeks ago who is a plastic boob salesman. He looked at me in amazement and said "Really, do you think that we'll have another recession soon?"

No worries, the sheeple are still asleep. Carry on!

Thu, 07/10/2014 - 12:18 | 4943671 joego1
joego1's picture

It's the intersteller weather.

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