The Market Bull – September 12, 2019
The major averages closed with modest gains on little news. Bolton’s departure from the Whitehouse should increase the odds of a trade war settlement.
The Consumer Price Index or CPI advanced .1% in August on gains in Goods and Services prices. On a year ago basis the CPI is up 1.8%, slightly below the Fed’s 2% target.
Bank of America Merrill Lynch reports that its aggregated credit and debit card data shows consumer spending falling .5% in August. The report went on to note that consumer sentiment was being dampened by the on again, off again trade war, the resultant market gyrations and a slowing economy.
Following in the footsteps of the Federal Reserve. The European Central Bank or ECB returned to cutting interest rates for the first time since 2016. Additionally, the ECB restarted its Quantitative Easing or asset purchase programs, dropped calendar-based forward guidance and replaced it with inflation-linked guidance, the ECB also made a few other minor changes. The message is clear, a return to full blown market and fiscal stimulus to prop up an economy saddled with non-performing loans, excessive debt and unable to grow despite emergency level interest rates and other measures.
Standard and Poors 500 Index closed at: 3,009.61 up 8.68
NASDAQ finished the day: 8,194.47 up 24.79
Gold ended trading at: $1,506.60 up $3.40