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...



Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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


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"


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

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


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.”


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.

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.


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.

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.

Do NOT follow this link or you will be banned from the site!