The Market Bull – June 14, 2019
Despite generally positive data the major averages closed with small losses and finished the week about even.
May retail sales came in as expected gaining .5%. April was revised sharply higher from -.2% to +.3%. Sales gains were broad based and particularly strong for online sales up 1.4%, sporting goods, hobbies, electronics and appliances were all up 1.1%. On a year ago basis sales advanced 3.2%. Store closings continue to drag on the series as do trade wars and tariffs.
Industrial production beat consensus in May with a .4% advance led by strength in Motor Vehicles, Parts and Utilities. Capacity Utilization gained .2% to 78.1%. With resolution of the trade war with China diminishing and tariffs set to hit 25% the economic collateral damage is likely to be extensive on both sides of the Pacific.
Business inventories bounced back in April up .5% on a large jump in wholesale inventories. The inventory to sales ratio was unchanged for retail at a fairly high 1.45. The wholesale ratio increased slightly to 1.34.
Standard and Poors 500 Index closed at: 2,886.98 down 4.66
NASDAQ finished the day: 7,796.66 down 40.47
Gold ended trading at: $1,345.30 up $1.60