The Market Bull – January 15, 2019
Despite generally disappointing data the major averages closed with large gains. The Brexit vote goes down in flames badly, leaving dire predictions for a catastrophic crash out in March. Auto sales in China fell for a 6th consecutive month in December dropping 13%.
This pushed sales for the year down 4.1% to 23.7 million units and marks the first annual sales decline since 1990.
The Empire State Regional Fed Index plunged 7 points in January to 3.9. Weakness was noted in new orders, employment, and inventories.
Price data was mixed and remains moderate. The regional Fed surveys of late have shown some initial signs of weakness, but not enough to raise the alarm
The Producer Price Index or PPI slipped to -.2% in December as inflationary pressures continue to moderate across the board.
On a year ago basis the PPI is up just 2.4% a 16-month low. Large declines in energy prices offset sharp gains in produce prices.
CreditForecast.com released its December Consumer Credit Report showing a 3.94% gain from a year ago. Faster than wage growth and in a rising interest rate environment this will add additional financial stress to the average household budget.
Delinquency rates ticked up but remain quite low. Nothing says success like record debt levels and consumers were more than willing to pull out their credit cards during the period in question.
Standard and Poors 500 Index closed at: 2,610.30 up 27.69
NASDAQ finished the day: 7,023.83 up 117.92
Gold ended trading at: $1,289.10 down $2.20