The Market Bull – June 19, 2019
The major averages closed with small gains following dovish Fed comments. Geopolitical tension rises as the global economy weakens.
The Mortgage Bankers association reports that mortgage activity fell 3.4% last week with the purchase and refi components both slipping 3.5%. The 30-year jumbo rate for a conforming loan was unchanged at 4.04%.
As expected, the Fed left interest ratees unchanged at the conclusion of the latest Federal Open Market Committee or FOMC meeting. The Fed also removed its “patient” statement with respect to future changes in interest rates replacing it with “will act as appropriate to sustain the expansion.” One presumes this means lower interest rates and possibly another round of failed QE or Quantitative Easing that simply drives wealth and income inequality and makes housing unaffordable for your average American. Odds are increasing for rate cuts later this year, but the Fed Board of Governors is not united on the subject. I think the next few month’s will be very telling as the trade war bites hard and the data starts to show up in the economic reports in a big way. Almost all the preliminary data shows that the trade war’s impact is going to be far more significant that the pundits believe at present, for the most part.
Standard and Poors 500 Index closed at: 2,926.46 up 8.71
NASDAQ finished the day: 7,987.32 up 33.44
Gold ended trading at: $1,364.60 up $13.90