U.S. economic growth slowed in the second quarter as consumers spent at their slowest pace in a year, increasing pressure on the Federal Reserve to do more to bolster the recovery.

Gross domestic product expanded at a 1.5 percent annual rate between April and June, the weakest pace of growth since the third quarter of 2011, the Commerce Department said on Friday.

The ailing economy could cost President Barack Obama a second term in office when Americans vote in November. Obama's approval rating on his handling of the economy is slipping.

Expectations of further monetary stimulus fueled a rally on Wall Street, with the Dow Jones industrial average closing above 13,000 for the first time since May 7.

The Standard & Poor's 500 index touched its highest level in nearly three months. Treasury debt prices fell as the GDP report was in line with economists' expectations. The dollar rose against the yen. (commentary & photo courtesy of Reuters)

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Let’s take a look at RSI’s picks for this week. IBB is a very strong biotech fund. It is beating the market since last November and it should continue with its superior performance.

IYR is a fund specializing in the real estate sector. Since this sector has been beaten down, there may be a good future for real estate.

We have featured REM in the past and again it calls out for attention. It appears to be still drawing the flight to safety and yield seeking money. It is paying about 12% which is huge inducement.

Catch you next week.