The Market Bull – May 20, 2019
The major averages stumbled to begin the week on disappointing data. Rumors of a trade war settlement evaporated once again.
The Chicago Fed National Activity Index that covers about 80% of total economic activity fell again in April, down .50 to -.45. A volatile series the 3-month moving average slipped to -.32 almost half of the -.7 level that is considered recessionary. Three of the four broad categories that make up the index decreased.
The 2018 retail apocalypse that saw record numbers of stores closed and retail square footage lost has already been eclipsed in 2019, and we’re not even halfway through the year. Per a report from Coresight Research some 6,378 stores, more than 500 more than 2018, have already been closed this year. The report went on to expect some 12,000 total store closings in all of 2019 a staggering number, especially when one considers that the economy is supposedly booming. The news isn’t all bad, though. Retailers have also announced 2,726 store openings this year. That said it is primarily being led by deep discounters like Dollar General, Family Dollar and Ross Stores. Just another example of the great success of our booming economy. With tariffs set to jump from 10% to 25% and be dramatically expanded soon the fortunes of the deep discount retailers could well end up changing for the worst.
Standard and Poors 500 Index closed at: 2,840.23 down 19.30
NASDAQ finished the day: 7,702.38 down 113.91
Gold ended trading at: $1,277.50 up $1.80