fbpx Accept-Encoding: deflate, gzip

4th Quarter Begins With Modest Losses
The Market Bull 2019

 
 
00:00 / 2:11
 
1X
 

The Market Bull – October 1, 2019

The major averages couldn’t hold their opening gains to begin the 4th quarter, finishing with modest losses on disappointing manufacturing data. For the 3rd quarter the Standard and Poors 500 Index gained 8 points or .27%. The NASDAQ on the other hand fell 147 points or 1.8%.

Construction Spending advanced .1% in August missing expectations on gains in residential and public construction. Nonresidential construction slipped 1% a second consecutive decline.

The Institute for Supply Management Manufacturing Index fell for a 6th straight month in September down 1.3 points to 47.8 a second month in the red. Declines were broad based with almost all sub-components showing contraction below 50. At 47.8 this is the lowest reading in over 11-years, while 42.9 is generally considered to indicate recession for the series, the report went on to note that manufacturing was likely already in recession. Not mentioned was plunging capex spending in the tight energy sector as it has proven unable to generate profits. Ostensibly this was the reasons for today’s decline, but as manufacturing only makes up about 18% of the total economy, I find that hard believe. A better explanation is another oversubscribed Repo operation, something notably absent from the headlines today.

Standard and Poors 500 Index closed at: 2,940.25 down 36.49
NASDAQ finished the day: 7,908.68 down 90.65
Gold ended trading at: $1,487.60 up $14.70

error
error

Enjoy this blog? Please spread the word :)