The Commerce Department's Bureau of Economic Analysis reported today that the 1st read Gross Domestic Product (GDP) for the 2nd quarter came in at 2.4%, down from the 3.7% reading from the 1st quarter of this year. The report went on to say that the recession was deeper than earlier believed. The Chicago Purchasing Managers Index rose to 62.3 in July, higher than the 56.3 that was expected. Readings over 50% indicate overall business expansion. Consumer Sentiment also rose above expectations to 67.8, above the 67.5 that was expected but down from the June reading of 76.0. Mortgage Bonds hit record highs this morning after the weak reading on Gross Domestic Product but have traded lower from those levels after the reports from Chicago PMI and Consumer Sentiment. July is looking to be the best month for Stocks since July of 2009. The Dow Jones Industrial Average, an index of 30 large publicly traded companies, is up nearly 7% for the month. St. Louis Fed President James Bullard said yesterday the U.S. is in danger of falling into a deflationary period because of the low interest rate environment. Mr. Bullard suggested another round of asset purchases by the Fed, such as the buying of Treasury Securities.

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