Daily Market Color July 26, 2019Equities Hit New Records After Solid GDP Print and Strong Earnings U.S. Q2 GDP beats expectations but Treasurys end the day flat in quiet session. The U.S. economy grew by 2.1% last quarter, aided by strong consumer and government spending. Economists surveyed had forecasted a 1.8% growth rate. Also coming in above expectations was the GDP Price Index, which came in at 2.4% versus consensus estimates of 2%. The higher inflation and growth figures come a day after ECB President Mario Draghi said he saw nearly no risk of a recession in the Eurozone, and only add to the signs of strength seen in the US economy ahead of next week’s rate decision. Treasury yields fell slightly as the 10 year Treasury yield closed at 2.072%. U.S. equities rise in the wake of strong US growth. The strong GDP print, coupled with upbeat tech earnings propelled the S&P 500 to a new intraday high of 3023.9. Google, in particular, had its strongest earnings in many years and rose 1.1% as advertising revenues rebounded. The S&P 500 and Dow Jones Industrial Average rose 0.77% and 0.22% respectively to end the week on a positive note. White House Economic Advisor Larry Kudlow says President Trump has “ruled out” weakening U.S. dollar. The news comes after speculation that the US would consider intervening in the currency market to weaken the US dollar and make U.S. products more attractive on a relative basis to foreign goods. President Trump has long accused China and Europe of playing a “big currency manipulation game,” but it appears he is willing to hold off on any manipulation of his own for the time being. The Dollar Index rose .2 on the day to 97.99.