The incoming Obama administration is expected to launch a stimulus package that could reach up to $1 trillion. Martin Hutchinson says this is a popular - yet high-risk - strategy. In so far as the plan increases the budget deficit and national debt, while crowding out private-sector investment, the long-term damage to the economy could outweigh the stimulus benefits.

Addison Wiggan and Ian Mathias in Agora Financial’s 5. Min Forecast have already warned readers about the risk of taking yesterday’s 3.3% rise in U.S GDP figures at face value. Here, Charles Delvalle at Investor’s Daily Edge says the government’s economic stimulus checks and a weak dollar made U.S. growth seem more impressive than it really is. Don’t expect 3Q data to be quite so favorable…

U.S. stocks were given a boost today by a strong upward revision of GDP growth data for Q2. According to updated figures, between April and June, the economy expanded by 3.3% y-o-y, up from a preliminary estimate of 1.9%. The Dow (DJI), S&P500 (INX) and Nasdaq (IXIC) all responded with gains of over 1% during the day’s trading.

More dollar strength… Retail Sales surprise… SARB raises rates! Gold on the slippery slope…

Commander in Chief of the ailing US economy says there’s help on the way for Americans in the form of federal stimulus checks, which have been sent out in the mail today.

The headline-grabbing refund checks, part of an economic stimulus package passed in February, will go to roughly 130 million US households and will range in value from $300 to $1,200.