UNITED STATES−On Friday, July 30, the Bureau of Economic Analysis (BEA) released the advanced estimate of the U.S. GDP for the second quarter, which reflects the months of April, May, and June. Real GDP contracted at a rate of -32.9 percent.
Although the reports showed the largest quarterly decline since 1947, it also indicates the resiliency of the U.S. economy in addition to the quick response of the U.S. government could be contributors to a strong economy.
News reports indicate that while Apple has posted more than $11 billion profit, Amazon sales jumped by 40 percent, and Facebook’s profit increased by 98 percent.
More Americans maybe staying home during this pandemic, but reports reveal that they have not stopped buying.
According to an August 1 article in nasdaq.com, revenue has jumped by 40 percent this quarter up to $88.9 billion. The results have beat the company’s own guidance for 18-28 percent top-line growth and analyst estimates of a 28.6 percent increase to $81.5 billion.
Amazon’s bottom-line result after forecasting operating income break-even for the second quarter, operating profit nearly doubled to $5.8 billion, and earnings per share jumped from $5.22 a year ago to $10.30, dwarfing the analyst consensus at $1.46.
Vice President Pence spoke on the Trump administration’s pro-growth administrative policies in Somerset, Pa. VP Pence reminded the people of Pennsylvania of some of President Trump’s accomplishments in the first three years.
“Pennsylvania employed a record number of workers, set a record in history, and gained back nearly 20,000 manufacturing jobs,” the VP stated. “We cut taxes across the board. This President rolled back more federal regulations already than any President in history.” The crowd broke out in applause at this point. Pence continued. “We fought for free and fair trade. We just signed the new USMCA deal into law, and we fought for American energy. And we’re a net exporter of American energy now for the first time in 70 years. An none of that would have been possible without the strong support in our first two years of Republican majorities in the House of Representatives.”
Full-text of Vice President Pence’s briefing and statements may found on the White House web page.
https://www.whitehouse.gov/briefings-statements/remarks-vice-president-pence-trump-administrations-pro-growth-economic-policies-somerset-pa/
“Now, the people of Pennsylvania deserve to know that if the other side gets their way, the future is going to look very different. It’s true. I mean, with Joe Biden and the Democratic Party — instead of cutting taxes, Joe Biden and the Democratic Party want to raise taxes by $4 trillion. They want to bury our economy under an avalanche of regulation. And Joe Biden and the Democrats have a $2 trillion plan to abolish fossil fuels, including natural gas. They want to end fracking — destroy those jobs all across this state and all across this nation.” -Mike Pence
David Hunter, Contrarian Macro Strategist on Wall Street for more than 40 years Tweeted in reference to the way people act after a good report likening them to bears.
