The Market Bull – January 11, 2019
After ending 2018 with a decided thud. The major averages have kicked off 2019 with a bang, posting their best start since 2006.
Since Monday the S&P 500 is up 60 points or 2.4%, the NASDAQ is up 213 points or 3.2% for the week. As we go back to the nothing matters theme popularized in the last few years. The current list includes a trade war with China and the closing of a 6th round of talks with little if any progress. The looming Brexit fiasco and a near technical recession in Germany. Growing political acrimony and confrontation here at home. Substantial profit and revenue warnings for the fourth quarter. Being in the middle of an interest rate tightening cycle that features wild swings in the interest rate futures as they go from hikes, to cuts and back to hikes in relatively short order.
The California Manufacturing Survey fell 3.8 points in the first quarter to a still strong 61.2, a 6-quarter low.
Weakness was noted in inventories, production, and employment.
The Consumer Price Index slipped .1% in December, while the year ago rate fell to just 1.9% a 16-month low.
Energy prices fell substantially for a 2nd month.
With the government shutdown marking 20-days as Trump continues to try and strong-arm Congress to do his bidding. A recent report from CareerBuilder showed that in 2017 some 78% of Americans lived paycheck to paycheck. Women were particularly vulnerable with 80% reporting this status, men came in at 75%. The report went on to note that some 10% of those making a $100,000 a year or more also lived paycheck to paycheck. Other notable data points 50% of respondents reported being unable to save more than $100 per month. But I hear the economic recovery is just great, at least according to the mainstream media.
Standard and Poors 500 Index closed at: 2,596.26 down .38
NASDAQ finished the day: 6,971.48 down 14.59
Gold ended trading at: $1,287.90 up $.50