Blowout GDP Number Sends Bulls Charging

The advanced estimate for second quarter GDP growth just came out at 4 percent. That's a major reversal from the final first quarter number of negative 2.9 percent. Related numbers were strong too.

The price index for gross domestic purchases increased by 1.8 percent. Real personal consumption grew by 2.5 percent compared with 1.2 percent in the first quarter, which is pretty decent pace. Durable goods exploded upward by 14 percent compared with 3.2 percent last quarter.

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Investment in equipment increased by 7 percent, again a reversal from a first quarter decrease of 1 percent. Real residential fixed investment also grew, posting 7.5 percent growth compared with 5.3 percent in the first quarter.