Don’t expect the market to rally anytime soon.
Goldman Sachs has gone and cut GDP growth estimate down to 2.7%:
Dow Jones/WSJ: Ahead of Thursday’s U.S. gross domestic product numbers, Goldman Sachs cut its third-quarter GDP estimate to 2.7%, following lower-than-expected durable-goods shipments Wednesday morning.
The estimate, calculated on an annual basis, is down from the 3% Goldman previously expected.
Despite the reduced estimate for GDP growth, Goldman noted that orders for long-lasting goods were less dependent on volatile components than some, including Goldman, had expected. The firm called the durable-good numbers “actually quite encouraging,” because the gains were “not heavily concentrated in the volatile defence and transportation categories.”
However, shipments were “somewhat weaker, especially for nondefense capital goods,” Goldman said in the Wednesday report.