The Market Bull – April 3, 2019
Volatile early trade sent the major averages into the close with small gains. The global trade and political pictures continue to deteriorate.
The Netherlands Bureau for Economic Policy Analysis has an interesting report called the World Trade Monitor that shows global trade volumes falling for the first time since the great recession of 2007-2009. Global trade fell 1% in the 4th quarter as 2018 closed with a thud compliments of the ongoing trade war with China and the government shutdown here at home. Of note, both events are compliments of Trumps presidential decree as is his most recent threat to close the southern border with Mexico our 3rd largest trading partner, in the face of another migrant caravan. With security apparently trumping a more or less instant recession for both the USA and Mexico. The heavy-handed approach that seems to be Trumps style once again demonstrates a lack of creativity or intelligence when it comes to solving problems.
Traditional brick and mortar retail continues its slow painful death as JC Penny, Payless, and LifeWay close over 3,000 stores combined to kick of the 2019 retail apocalypse. This follows sharply rising mall vacancy rates on the back of Sears bankruptcy, per Reis Inc. While a recent survey from research firm Challenger, Gray & Christmas noted that retail job cuts for January and February totaled 41,201. Another report from Coresight Research noted that so far in 2019 US retailers have set out plans to close 5,480 stores almost as many as the 5,730 announced in all of 2018.
Standard and Poors 500 Index closed at: 2,873.40 up 6.16
NASDAQ finished the day: 7,895.55 up 46.86
Gold ended trading at: $1,294.30 down $1.10