Daily Market Update 7/27/12

Rates moved higher Friday as preliminary Gross Domestic Product (GDP) figures came in higher than expected.  The economy grew at a 1.5% annual rate in the second quarter, down from 2.0% in the first quarter, but better than the consensus forecast of 1.2%.  Meanwhile, Consumer Sentiment fell to its lowest level of the year.  Markets may be unusually volatile next week.  The Federal Open Market Committee of the Federal Reserve holds a two-day meeting to discuss monetary policy, beginning Tuesday.  It will release a statement Wednesday afternoon.  Weak second quarter growth may open the door to additional economic stimulus.  Also next week, the Employment Report for July, the most closely watched data of the month, will be released on Friday.  No other key data will be released today.