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T3's Take 3: US Q2 GDP Misses, Facebook Hits the Brakes


Today's financial recap and tomorrow's financial outlook.

Today at T3 Live

Techstrat author Sean Udall executed two trades. For his first trade, he bought a 2.5% stake in Qualys (QLYS), getting in at $37.70. His second trade was a sale of Vasco Data (VDSI).

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US Quarterly GDP

US GDP rose 2.3% during the second quarter, missing the expected 2.5%. First-quarter GDP was revised up to 0.6%, showing that the economy grew rather than the previously reported contraction.

The data brought investors attention to the interest rates. Yesterday, the Fed announced during their FOMC Rate Decision meeting that the US looked like it was making economic progress. Eric Green, head of US economic research at TD Securities stated that "this should make the Fed feel more comfortable about raising rates this year."

Equities markets opened lower on the news but picked up intraday, with the S&P 500 closing flat.


Facebook (FB) shares fell 2.1% today despite beating Wall Street's revenue and earnings expectations. Revenue jumped 39% to $4.04 billion during Q2, while net income fell 9.1% to $719 million.

Facebook's monthly active user count rose to 1.49 billion, while daily active users grew to 968 million.

Investors were concerned with a significant rise in expenses, and the stock had risen significantly ahead of the quarter, so expectations were very high. So while the numbers were solid, they weren't good enough to keep the stock moving up.


The IMF will participate in Greece's bailout program this Friday. The Greek government has put increased VAT rates and corporate income taxes into law, but will wait until the economy recovers before the new tax code is put into effect. Right now, the country is looking towards garnering foreign investment.

European markets have been rallying recently as Greece fairs have abated.

Friday's Financial Outlook

US economic data for tomorrow will include the Q2 employment cost index, ISM Milwaukee, Chicago PMI, University of Michigan sentiment, and Baker Hughes rig count data.

Overseas economic data will include German retail sales, euro-zone CPI and unemployment, Canadian GDP, and the Chinese manufacturing PMI.

Chevron (CVX), Enbridge (ENB), ExxonMobil (XOM), and Honda Motor (HMC) will announce earnings before the open tomorrow.

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