The Market Bull – July 19, 2019
The major averages closed with small losses on a dramatic escalation of tensions with Iran after they seized two more oil tankers in the Gulf. Since Monday the Standard and Poors 500 Index has fallen 41 points or 1.4%, the NASDAQ is down 117 points or 1.4%.
Industry GDP or Gross Domestic Product, a subset of the actual GDP report due next week, increased 3.2% in the first quarter. Gains were broad based with 16 of the 22 listed industries contributing to growth. That said growth has moderated, and second quarter GDP is tracking below 2% at an annualized rate.
Regional and State Level Employment Data shows that the East and West South-Central regions advanced .3% in June while the New England, Mountain and Pacific regions each advanced .2%. More data showing tight labor markets and solid job growth despite the escalating trade war and significant questions related to the labor force participation rate.
The California Association of Realtors or CAR report that sales fell 4.7% from a year ago in the 2nd quarter, inventory advanced 11% over the same period. Higher priced homes continue to sell well, but prices are leveling off in most areas. Despite dramatically reduced foreign demand and some unfriendly tax changes, real estate continues to hold up quite well.
Standard and Poors 500 Index closed at: 2,976.61 down 18.50
NASDAQ finished the day: 8,146.49 down 60.75
Gold ended trading at: $1,426.50 down $1.60