Romney Hits GDP Revision to Stem Dive in Polls
NEW YORK (TheStreet) -- Mitt Romney's campaign was out with multiple emails Thursday that projected doom and gloom over the most recent downward revision to U.S. GDP as the Republic presidential candidate attempted to reverse a slide in the polls.
The Commerce Department revised real GDP growth in the second quarter of 2012 down to 1.3% from the previous 1.7% estimate. Equities shrugged off the news of continued sluggishness in the U.S. economy as approval of Spain's 2013 budget and reports of more Chinese stimulus offset those worries.
Romney was on the campaign trail Thursday citing the downward revision, as he used the latest weak economic news to reinforce his message that Barack Obama's policies have failed to bring a strong recovery since the financial crisis.
Previous GDP revisions hadn't elicited the hefty response that the Romney campaign launched Thursday, but the move came as new polls have revealed the president widening his lead in national surveys and in battleground states.Tuesday night, Romney reiterated that his campaign is about the economy. It's a message the Republican presidential nominee had strayed from recently as he has done damage control because of a ubiquitous video of Romney telling donors that 47% of Americans are dependent upon the government. The move to hammer the GDP revision would keep Romney on message, while also allowing him to use fresh economic indicators to claim that the economy isn't strengthening, despite Obama's assertions to the contrary. Thursday's GDP number may not be the best sticking point with voters, as it didn't seem to be the main news driving the broader markets during the day. "Today's revisions didn't really change anyone's views that we're in an economy that's stuck in the woods," said Brian Gendreau, a market strategist at Cetera Financial Group. "There's been a lot of economic research showing that after the bursting of a bubble that it's typical ... for periods of slow growth to last -- particularly for debt to rise in periods of slow growth -- for several years afterwards." According to an average of national polls collected by RealClearPolitics, Romney now trails Obama by 3.4 percentage points, while he tracks lower against the president in Ohio by 4.8 percentage points, Virginia by 2.8 points, New Hampshire by 3 points, Florida by 1.4 points and Iowa by 2.5 points, among others.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV