Weekly Market Commentary 06/28/2018

As the curtain rings down on the first half of 2018, the second quarter is shaping up to be the mirror image of the first – a boom following a bust. Indeed, revisions this week reveal that headline growth in the first quarter was even weaker than earlier estimated, with GDP posting a sluggish 2.0% growth rate, down 0.2% from the previous estimate. But aside from the dispiriting setback in consumer spending — the economy’s main growth driver – to a meager 0.9% pace from an already-tepid 1.0% in the previous estimate, there was actually more to like than dislike in the quarterly revision. Indeed, some of the underlying details may help explain the sturdy rebound in second quarter growth, which should at least double the first quarter’s pace.