The Market Bull – August 2, 2019
The major averages closed with modest losses on mixed economic data. A bruising week for stocks rattled by failure of the trade talks and monetary policy. Since Monday the Standard and Poors 500 Index has fallen 92.42 points or 3.06%, while the NASDAQ plunged 321.03 points or 3.86%.
The International Trade Balance slipped fractionally to 55.2 billion in June. Exports fell 2.1% to 206.3 billion. Imports slipped 1.7% to 261.5 billion. The trade war and unfavorable monetary policy is doing little to stimulate trade or the global economy.
The Bureau of Labor Statistics reported an as expected 164,000 new jobs in July. The 3-month moving average fell to a very low 140,000. The official unemployment rate was unchanged at 3.7%. Average hourly earnings advanced a respectable .3%. The average workweek slipped .1 hour to 34.3. While the report is ok overall it does show that labor growth is slowing. The Labor Force Participation rate increased fractionally to 63%.
Factory Orders came in a little soft in June with a .6% advance. Durable Goods Orders were particularly strong. The proxy for business spending non-defense capital goods ex-aircraft advanced a respectable 1.5%, its best showing in quite some time.
Standard and Poors 500 Index closed at: 2,932.05 down 21.51
NASDAQ finished the day: 8,004.07 down 107.54
Gold ended trading at: $1,452.50 up $20.10