Momentum Slows In New Data: Q2 Growth Pegged At Just 1.1% Prior Periods Revised Down Widening trade gap plus lower consumer spending raise odds of "double dip'.(A)

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The economy grew at a weak 1.1% annual rate in the second quarter, the Commerce Department said Wednesday. That was just half what analysts expected.

Meanwhile, the Chicago Purchasing Managers Index fell to 51.5 in July from 58.2 in June. The drop was bigger than economists had forecast and shows the recovery in manufacturing slowed during the month.

Also, the Federal Reserve's regional survey, or beige book, showed an economy that's expanding at a modest, uneven clip.

Growth slowed this month in Boston, New York, Atlanta and Dallas, but improved in Cleveland and St. Louis, the Fed said. Fed policy-makers are expected to keep interest rates unchanged when they meet on Aug. 13.

Stocks traded lower most of the day, but rallied to finish mixed, with the Dow up 57, the S&P 500 up 9 and the Nasdaq down 16.

Bonds leapt, with the 10-year Treasury note up nearly a point and the yield down to 4.46%.