Realizing that the linkage between the economy and the stock market can sometimes be tenuous, it was good to see the latest economic releases this morning.  I’ve been saying the underlying economy was weak but not as weak as most people think.  Today, the final GDP growth rate for the second quarter was released.  It was increased from 1.1% to 1.3%.  This is up substantially from the 0.4% in the first quarter.  Make no mistake, this is not good, but the world is not ending either.

In addition, initial claims for unemployment dropped below 400 thousand for the first time since early April 2011.

The futures now indicate the market will open up 200 points, instead of the 100 points indicated earlier.  We are not going into recession, unless Europe pulls us into it!